S-217At second reading in the House of Commons

Law to force the CRA to report on unpaid income tax.

CRA must report unpaid taxes.

Introduced Mar 26, 2026

Summary

This proposed law wants to change how the Canada Revenue Agency (CRA) works. Right now, the CRA collects taxes. This proposed law would make the CRA also report on how much income tax is not paid each year. The report would need to include information about unpaid taxes linked to international tax dodging. This change would affect all Canadian taxpayers. It would also affect businesses that operate internationally. By reporting on unpaid taxes, the government hopes to find people and companies that are not paying their fair share. This could lead to more tax audits and penalties for those who are breaking the rules. This matters because unpaid taxes mean less money for important services like healthcare and education. If the CRA reports on unpaid taxes, it could help the government collect more money. This could make the tax system fairer for everyone who pays their taxes honestly. It could also discourage people from hiding money overseas to avoid paying taxes.

Where This Lands on Key Issues

Where this proposed law falls on the policy spectrums that Canadians care about

Taxes & Government SpendingInvest more in public services

The bill aims to improve tax collection by increasing reporting on unpaid income tax. This could lead to increased government revenue, which could then be used to fund government programs or reduce the deficit. This leans slightly towards expanding government programs.

This bill

Bill Quality

Solid

This proposed law aims to increase transparency around tax evasion and the "tax gap" (uncollected taxes). It would require the Canada Revenue Agency (CRA) to report on tax evasion convictions and provide data to help understand how much tax money goes uncollected, which is good. However, the details of how the tax gap will be calculated are broad, and the law relies on the CRA and Parliamentary Budget Officer to do the right thing.

Things to Watch For

The law doesn't specify the exact methods for calculating the tax gap, which could lead to inconsistent reporting.
It depends on the CRA to share data with the Parliamentary Budget Officer, with no clear consequences if they don't.
The law doesn't address how the government will use the tax gap information to improve tax collection or deter evasion.
There is no mention of protecting taxpayer privacy when sharing data with the Parliamentary Budget Officer.

Progress

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