Department of Finance Canada releases annual report on federal tax expenditures

From: Department of Finance Canada

The Government of Canada has a responsible fiscal plan to help the middle class, and the people working hard to join it, to grow and prosper. That fiscal plan rests upon a modern, simple and efficient tax system where everyone pays their fair share.

Today, the Department of Finance Canada released the 2020 Report on Federal Tax Expenditures-Concepts, Estimates and Evaluations. This report provides estimates of the fiscal cost of federal tax measures designed to keep the federal tax system functioning properly and support Canadian families and businesses.

This year’s report also includes three analytical papers. The first paper is a statistical profile of trusts as taxfilers and taxpayers. The second paper presents a profile of the beneficiaries of the Refundable Medical Expense Supplement, a credit that provides low-income working Canadians with assistance for medical and disability-related expenses. The third paper is a Gender-based Analysis Plus of the federal personal income tax system, focusing on tax expenditures with family components.

Tax expenditure reporting is considered an international best practice to foster government budgetary and fiscal transparency. This report is an example of the Government of Canada’s commitment to open government.

Quick facts

  • The release of today’s report is timed to coincide with the tabling of the Main Estimates in the House of Commons by the President of the Treasury Board.

  • The Government of Canada first reported on federal tax expenditures in 1979. It has published estimates of tax expenditures for personal and corporate income taxes, as well as for the Goods and Services Tax, since 1994.

  • The Report on Federal Tax Expenditures-Concepts, Estimates and Evaluations is a key component of the government’s reporting on the federal tax system, contributing to public dialogue on federal tax policies.

  • Studies published by international organizations-including the Organisation for Economic Co-operation and Development and the International Monetary Fund-have recognized the quality of Canada’s reporting on federal tax expenditures, noting the broad range of measures tracked and details provided.

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