The federal government plans to close loopholes and give the Canada Revenue Agency more power to crack down on tax evaders.
Thursday's budget includes measures to stop international tax evasion and aggressive tax avoidance.
The government hopes the measures bring savings of $441 million next year and a total of $6.7 billion by 2017-18.
"These additional tools will improve the CRA's ability to protect the government's revenue base and are consistent with the government's commitment to tax fairness," according to the budget document.
Changes are proposed for the Income Tax Act and Excise Tax Act to require banks, credit unions, trust and loan companies, money services businesses and casinos to report electronic funds transfers (EFTs) of $10,000 or more beginning in 2015. Reports will be due no later than five working days after the transfer and will include information on the sender and receiver of the funds, the transaction and the financial intermediary. The CRA will receive $15 million over five years for the program.
"This requirement will apply to the same financial intermediaries that are currently required to report international EFTs to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act."
Meanwhile, the Stop International Tax Evasion Program will reward those who report major international tax non-compliance, leading to collection of outstanding taxes.
"The CRA will enter into a contract that will pay an individual only if the information results in total additional assessments or reassessments exceeding $100,000 in federal tax. The contract will provide for payment of up to 15% of the federal tax collected (i.e., not including penalties, interest and provincial taxes)."
The document said the CRA will announce further details on the program "in the coming months."
Ottawa wants to cut departmental travel by $42.7 million – or 5% – by increasing the use of "modern alternatives" to travel, such as teleconferencing and videoconferencing.
The government spent almost $1.7 billion on travel in 2008-09, and this spending has declined annually. In 2012-13, the preliminary cost estimates for the year, based on the first seven months, were more than $1.3 billion.
Savings through 2017-18 are estimated to be $214 million, which will be offset by the $20 million expansion of the government's teleconferencing system.
The government issued a directive on the management of travel, hospitality and conference expenditures in January 2011 with additional oversight added in October 2012 for department-related events where costs exceed $25,000.
"Economic Action Plan 2013 will further strengthen the Directive by requiring additional oversight of travel authorization and promoting alternatives to travel," the budget document stated.
Cuts to Canada Revenue Agency and Fisheries and Oceans operations will bring $23 million in savings next year and $367 million over the next six years. The Fisheries and Oceans cuts included the controversial closure of the Kitsilano Coast Guard station, to save $700,000 a year.
