Quote:
Originally Posted by DoubleF
certain CRA case law has been reversed in favor of the tax payer because the CRA over stepped their bounds to try and get a result.
There is no clear cut way to resolve the issue. The biggest reasons being legal reasons (ie: different legal jurisdictions, legality of bringing a case against the individual/corporation) and a smoking gun (ie: limiting the individual/corporation's ability to fight back and increase the margins of recovery as a result).
As I mentioned before, there is a cost to recover these funds. If it costs $100 million in audit fees, legal fees etc. to recover $150 million over 5 years in unpaid taxes, interest and penalties, that might sound reasonable. But as I mentioned, that's a drop in the bucket vs real local tax evasion happening on Canadian soil that offers less resistance if brought out into the open.
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That's just it, corporations and wealthy individuals currently have (imo) too much leverage allowing them to fight CRA rulings and bog things down in the courts. There needs to be a fundamental rethink of the system, if there's ever going to be true progress made toward solving this problem. As you said, the trickiest part will be getting all the major governments around the world on board with implementing the new laws, norms, etc.