CRA’s previous tax gap reports
Since 2016, the Canada Revenue Agency (CRA) has published reports on the federal tax gap, outlining its different components and explaining the methodology used for estimation. These reports have been updated and revised to ensure accuracy, based on the most current data available.
For the latest findings and analyses, please refer to the second overall tax gap report.
A conceptual study, 2016
- In June 2016, the CRA released Tax Gap in Canada: A Conceptual study, CRA’s first effort to explore the concept of the tax gap and clarify what it can – and cannot – reveal about compliance with Canada’s tax system. The study provided a definition of the tax gap, discussed the challenges of tax gap estimation, and examined how tax gap estimates can be used in administering taxes. The study also included an overview of the work done by other countries that use tax gap estimation.
Goods and services/harmonized sales tax gap estimate, 2016
- In June 2016, the CRA also released Estimating and Analyzing the Tax Gap Related to the Goods and Services Tax/Harmonized Sales Tax (GST/HST). The report focused on a 15-year tax period and found that the tax gap estimates can fluctuate due to the normal operations of the tax system unrelated to non-compliance. The report also compares the estimate to those from other tax jurisdictions.
Personal income tax compliance in Canada, 2017
- In June 2017, the CRA released its third report, Tax Assured and Tax Gap for the Federal Personal Income Tax System, an estimation of the domestic personal income tax gap and a measure of income tax compliance in Canada using tax-assured indicators. The report concluded that extensive third-party information reporting, along with other tax system features, helps ensure a largely assured tax base.
Tax compliance of individuals in the international context, 2018
- In June 2018, the CRA released a fourth report, International Tax Gap and Compliance Results for the Personal Income Tax System, which examined the international component of the tax gap with a focus on individuals. This analysis builds on the CRA’s previous study of the domestic personal income tax gap. The report provided an in-depth analysis of foreign reporting obligations, completed international risk-based audits, and an estimate of Canada’s offshore investment income tax gap.
Corporate tax compliance, 2019
- In June 2019, the CRA released its fifth report, Tax Gap and Compliance Results for the Federal Corporate Income Tax System. The report examined the federal corporate income tax gap related to reporting non-compliance, case where corporations fail to fully or accurately report income, deductions, and credits. It also highlights key CRA compliance programs and initiatives targeting corporate taxpayers.
Excise duties and taxes compliance, 2020
- In December 2020, the CRA released its sixth report, Tax Gap for Federal Excise Duty on Cigarettes. The report examined the tax gap related to illegal production/smuggling of cigarettes and highlighted the CRA’s compliance efforts in the tobacco industry.
Payment tax gap, 2020
- In December 2020, the CRA published its seventh report, Payment Tax Gap and Collection Efforts. This report examines the tax gap resulting from payment non-compliance – when assessed taxes are not fully paid by taxpayers. The payment gaps for tax years 2008 to 2014 were calculated for four types of taxpayers – individuals, corporations, goods and services tax/harmonized sales tax (GST/HST) registrants, and excise tax and duty licensees/registrants. The report also highlights the key CRA compliance programs and initiatives tailored to taxpayers.
First overall federal tax gap report, 2022
- In June 2022, the CRA published Canada’s first overall tax gap report, which brings together all previously published tax gap components with updated estimates and key findings up to tax year 2018. In addition to this overall tax gap report, the CRA published a separate methodological annex, which contains more technical details related to the methods used to estimate the different components of the federal tax gap. The purpose of this annex is to bring together methodologies for all tax gap components in a single document and present key methodological updates.