The Canadian Bankers Association, on behalf of the Big Five banks, said without more detail on specific legislative measures, it’s difficult to know how the reforms will affect banks.
“Banks in Canada have always paid their full share of taxes and will continue to work closely with Finance to ensure continued compliance in this area,” wrote CBA spokesperson Aaron Boles in a statement.
The crackdown on banks was just one of a half dozen measures in the budget that address tax avoidance and tax evasion issues brought to public attention by the Star and CBC/Radio-Canada’s reporting on the Panama Papers and the Paradise Papers over the last two years.
The measures introduced in the budget include:
Preventing banks from creating “artificial losses.” The budget proposes strengthening existing anti-avoidance rules to prevent banks and financial institutions from using share repurchase transactions with subsidiaries to create losses on paper in order to gain