Tuesday, August 17, 2021
Allison Christians (McGill; Google Scholar) & Tarcisio Diniz Magalhaes (Antwerp), Canada’s Experience with the ICAP:
As tax administrations around the world continue to reform international tax rules to promote transparency and address the challenges of aggressive tax avoidance, base erosion and profit shifting, and the digitalisation of the economy, multinational taxpayers are increasingly expressing concerns about a rise in compliance costs and risks of double taxation. To tackle these issues, Canada has, in the past years, implemented a series of administrative policies and initiatives of voluntary co-operation, aimed at increasing disclosure by large corporations for better compliance, while reducing risks.
This chapter, developed by consultation with competent authorities from Canada Revenue Agency’s International and Large Business Directorate, focuses on Canada's involvement in the OECD’s new pilot project for co-operative compliance: the International Compliance Assurance Programme (ICAP). It concludes that one of the ICAP's impacts will be to allow states to gain insight into the approaches, and anticipate the likely revenue positions, of their peers.