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2007 February Status Report of the Auditor General of Canada
February 2007 Status Report—Chapter 7
Appendix—List of recommendations
The following is a list of recommendations found in Chapter 7. The number in front of the recommendation indicates the paragraph where it appears in the chapter. The numbers in parentheses indicate the paragraphs where the topic is discussed.
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Recommendation |
Response |
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Risk Assessment | |
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7.50 The Canada Revenue Agency should seek access to broader information on current international business practices of industry groups and on specific taxpayer transactions when it can demonstrate that this access would improve the identification and assessment of the emerging international tax risks or improve compliance with international tax rules. |
The Agency agrees that access to additional information would further enhance its ability to identify and assess emerging international tax compliance issues and has taken steps to increase its risk assessment capacity. The Agency will continue to explore avenues and opportunities to increase its access to information, including working with other tax administrations to combat global tax compliance risks. |
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International auditor expertise and support | |
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7.65 The Agency should develop appropriate strategies to ensure that the international audit approach to, and the coverage for, large corporate taxpayers, relative to tax risk, is consistent across the country. |
The Agency agrees with the importance of ensuring that the highest risk international audit issues for large corporate taxpayers are identified and audited consistently across the country. Building on organizational changes that the Compliance Programs Branch made in January 2006 that have improved the Branch's overall flexibility in using resources, the Agency is analyzing how to best address the Auditor General's concerns as well as considering other options to further strengthen its international audit expertise. |
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Non-resident operations | |
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7.84 The Agency should seek legislative changes to make it mandatory for all non-resident individuals, corporations, and trusts, subject to Canadian tax administration, to have and use tax numbers. |
The Agency agrees that the use of mandatory tax numbers would assist it in strengthening certain aspects of its compliance programs. The Agency will review this recommendation as well as other administrative and legislative options to determine the most appropriate approach to addressing the concerns identified by the Auditor General. |