Harper Government Strengthens Tax Collaboration with India
Minister Findlay meets with Indian counterpart during trade mission to India
DELHI, INDIA–(Marketwired – Oct. 15, 2014) – Canada Revenue Agency
The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue, met today with Nirmala Sitharaman, India’s Minister of State for Commerce and Industry and Minister of State for Finance and Corporate Affairs, to confirm their shared commitment to strengthening the current economic links between Canada and India. The Ministers’ meeting touched on continuing international cooperation and collaboration on tax administration and trade issues, as well as the importance of international collaboration and shared best practices on addressing international tax evasion and tax avoidance. Minister Findlay also met with Arun Jaitley, India’s Finance Minister, to discuss trade, economic, and taxation issues of common interest.
One of the Government of Canada’s international priorities is to encourage the development and application of international tax standards to strengthen bilateral economic relationships, reduce tax barriers, increase transparency, and create enhanced opportunities for Canadian business. As G20 members, Canada and India are both active members in the ongoing work of the Organisation for Economic Co-operation Development on tax-related matters.
Minister Findlay joins Foreign Affairs Minister John Baird, International Trade Minister Ed Fast, and Parliamentary Secretaries Bob Dechert and Deepak Obhrai as they engage in annual discussions around the Canada-India Strategic Dialogue and lead a multi-city trade mission to boost Canada and India trade and investment partnerships.
Canada currently has a network of 92 bilateral tax treaties and 21 tax information exchange agreements signed and in force, all of which permit exchange of information between signatories.
As a recognised global leader in tax administration, Canada benefits from exchanging best practices and ideas with its partners.
The Canada-India Income Tax Agreement has been in force since January 11, 1996. It was established with the objective to avoid double taxation and prevent tax evasion.
Bilateral merchandise trade between Canada and India totalled $5.8 billion in 2013, a 10.7 percent increase from 2012, and has more than doubled over the last ten years.
India has an internal market of more than 1.2 billion consumers, a predicted annual economic growth of 6.6 percent between now and 2019 and a GDP of US $1.9 trillion in 2013. Canada has a strong network of trade support in India, with eight Canadian Trade Commissioner offices and five Export Development Canada (EDC) representatives. To date, EDC has supported close to 300 Canadian companies with contracts worth $1.86 billion.
“International cooperation and collaboration are vital to our efforts to combat tax evasion and aggressive tax avoidance, and to maintain the integrity of the tax system. Canada has strong people-to-people ties with India, thanks to the more than one million Canadians of Indian descent who are part of our cultural and economic fabric. Our Government values this relationship and I look forward to continuing to work together on matters related to trade, economic development, and tax administration.”
The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue