The new rules for tax reporting will be presented in Canada

The Government of Canada issued a draft legislative proposal for the implementation of general tax reporting standards (CRS) on July 1, 2019.

Now Canadian financial institutions will be required to conduct procedures for identifying accounts owned by non-residents. They will then have to provide the necessary information to the Canadian Revenue Agency (CRA).

Canada will seek to ensure that each jurisdiction has the appropriate capacity and guarantees for the exchange of information. The information will be communicated on a mutual bilateral basis with the jurisdiction of which the account holder is resident.

The Department of Finance reported that information from partner jurisdictions would help Canada better deal with tax evasion, enforce tax compliance and protect the integrity of the tax system.

According to the plans of the government, the first consultations will begin from July 15.

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