Ministry of Finance
November 17, 2014
Ontario has created a competitive and fair tax system that supports the funding of critical public services for Ontarians.
When some businesses do not pay their fair share of taxes, it puts legitimate businesses at a competitive disadvantage.
Businesses that do not pay their fair share of taxes often ignore other rules, such as protecting employees and ensuring that products and services are reliable and safe. That’s why it’s important for Ontario to ensure a level playing field for businesses and require all taxpayers to play by the rules.
The government is taking concrete steps to strengthen revenue integrity and in 2013–14, its efforts generated more than $380 million in additional revenue.
Some recent examples include:
Building on its progress, Ontario is committed to moving forward with new measures, such as:
For several years, Ontario has requested that the federal government release a national strategy and action plan to address the underground economy. A clear national strategy and action plan are imperative to ensuring that compliance efforts are effectively coordinated with provinces.
Ontario continues to work with the federal government to identify and adopt new measures to better address corporate tax avoidance.
Most recently, the Taxation Act, 2007 was amended to enhance oversight of aggressive tax avoidance transactions. The new disclosure rules are similar to those put in place by the federal government and Quebec, and will position Ontario to more effectively address egregious tax practices.
Ontario is committed to adopting best practices to ensure companies pay their fair share of tax and do not employ elaborate tax planning schemes that undermine the intent of the Province’s tax laws.
The low price of contraband tobacco undermines the integrity of the Tobacco Tax Act and the Smoke-Free Ontario Strategy. To address this challenge, Ontario intends to proceed with several initiatives, including establishing oversight of raw leaf tobacco effective January 1, 2015. This change will help impede the flow of raw leaf tobacco to contraband tobacco product manufacturers and address some of the concerns raised by law enforcement agencies.
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