Canada Revenue Agency
www.cra.gc.ca
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Joint International Tax Shelter Information Centre
Working together to find international solutions to combat tax abuse.
- About JITSIC
- Objectives of JITSIC
- CRA's role in JITSIC
- Information-sharing
- JITSIC in the news
- Other international tax issues
About JITSIC
Canada is a founding member of the Joint International Tax Shelter Information Centre (JITSIC), which was created to improve national and global enforcement strategies and activities to combat tax abuse. While tax administrations operate primarily within their own borders, many abusive tax transactions operate globally, without regard for national boundaries.
JITSIC was formed by the tax administrations of Australia, Canada, the United Kingdom and the United States in April 2004 to address a number of common challenges with respect to abusive tax transactions. Recently, Japan has accepted an invitation to join JITSIC.
Delegates from participating JITSIC countries work together in a JITSIC office located in Washington, DC. A new centre will open in London in the fall of 2007.
Objectives of JITSIC
- Increase public awareness of the risks associated with abusive tax schemes;
- Recommend changes in tax administration practices for addressing abusive tax schemes;
- Enhance enforcement efforts through coordinated “real time” exchanges of tax information;
- Use Internet and other techniques to track and identify promoters/users of tax schemes;
- Identify emerging trends in anticipation of the evolution of abusive tax schemes; and
- Improve members' knowledge of techniques used to promote cross border abusive tax schemes.
CRA and JITSIC
The CRA's participation in JITSIC enhances its ability to identify and deal with abusive tax schemes and with those who promote them. It will also provide earlier insight into schemes that are developed abroad but marketed in Canada.
The CRA will benefit from the shared techniques for identifying schemes and from sharing expertise, experience, and practices to combat abusive tax transactions. The Information Centre should act as a key component in the CRA's overall strategy to deal with aggressive tax planning and help protect the Canadian tax base.
The CRA continues to work with international organizations, such as JITSIC and the Organisation for Economic Cooperation and Development (OECD), to identify and put a stop to the abusive use of tax shelters and tax havens.
Information-sharing
Canada has tax treaties with 86 countries. These treaties provide the legal framework for international cooperation including, in specific circumstances, the exchange of taxpayer information.
The CRA closely controls the exchange of taxpayer information ensuring all taxpayer rights are respected. Canada's participation in JITSIC does not raise confidentiality issues for Canadian tax purposes. All exchanges that result from JITSIC are subject to the same tax treaty provisions, the same domestic legislation, and the same due diligence to which any exchange of information is subject in Canada.
JITSIC in the News
Canada's participation in JITSIC is producing real results. For example, Canada and the US unraveled an abusive cross-border tax scheme involving hundreds of taxpayers and tens of millions of dollars in improper deductions and unreported income from retirement withdrawals. Read the news release for more information: Canada Revenue Agency and the IRS unravel cross-border tax scheme.
