Friday News Roundup 21.07.09: Bill C-208 fallout, tax canyons, tennis tax avoidance and more

Wrapping up the odds and ends in this week’s Canadian accounting news

Jul 10, 2021 Author: Canadian Accountant

TORONTO, July 9, 2021 – The biggest news from the world of Canadian accountant was the fallout from Bill C-208. Let’s be clear here — we sympathize with Canadian accounting firms, who are looking forward to a new and lucrative service line, especially those firms and accountants with farming, fishing and small business clients. But the good news is, according to Allan Lanthier in his two-part technical analysis of the legislation, “this long saga should reach a happy ending by the end of this year.”

Bill C-208 was poorly written and “handed tax avoiders a new surplus stripping scheme on a silver platter.” And, for accounting firms that eagerly test the limits of tax legislation as sport, the Bill’s provisions must be tantalizing. But the Liberals allowed a free vote on the Bill — 128 Liberals MPs opposed it, 19 Liberals supported it — and will now be forced to amend it.

The Globe and Mail tut-tutted about legislative process. The Toronto Star says small business owners, still bearing a grudge against the Liberals for Bill Morneau, are “outraged.” And Allan Lanthier appeared in both the Financial Post and Wealth Professional to explain surplus stripping.

It was a busy week! Now let’s get into the rest of our weekly roundup of odds and ends from the world of Canadian accounting.

G&M: Ottawa should collect more taxes

The Globe and Mail has suddenly become concerned about the “tax gap,” which they now call a “tax canyon,” and wants Ottawa to devote the same resources to the Canada Revenue Agency that the cash-starved IRS is hoping to receive from Joe Biden. “The return on investment of greater enforcement is obvious,” says the Globe.

Pay Canadian taxes? That’s just not sporting!

Corporations should pay their taxes. The wealthy should pay their taxes. You know who else should pay their taxes? Tennis players! Canadian athletes dodging taxes shouldn’t represent Canada at Olympics, says Amir Barnea in the Toronto Star, calling out Tennis Canada and the Canadian Olympic Committee because they won’t criticize Canadian athletes’ tax avoidance.