Department of Finance Releases Annual Report on Federal Tax Expenditures
News release
February 25, 2021 - Ottawa, Ontario - Department of Finance Canada
Today the Department of Finance Canada released the 2021 Report on Federal Tax Expenditures—Concepts, Estimates and Evaluations. This annual report provides estimates of the fiscal cost of federal tax measures. This annual report is a key component of the government’s reporting on the federal tax system, providing transparency to Canadians and contributing to public dialogue. The release of today’s report coincides with the tabling of the Main Estimates in the House of Commons by the President of the Treasury Board.
This year’s report includes estimates for tax expenditures implemented in response to the COVID-19 pandemic. The cost projections take into account the economic slowdown and new tax expenditures that have been introduced to support Canadians and businesses.
This report has been provided to Canadians, on an annual basis, since 1994. Studies published by international organizations—including the Organisation for Economic Co-operation and Development in 2010 and the International Monetary Fund in 2011—have recognized the quality of Canada’s reporting on federal tax expenditures, noting the broad range of measures tracked and details provided.
Quick facts
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Tax expenditures can be described as tax measures that depart from the benchmark tax system and include preferential tax rates, exemptions, deductions, deferrals and tax credits.
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The Government of Canada first reported on federal tax expenditures in 1979. It has published annual estimates of tax expenditures for personal and corporate income taxes, as well as for the Goods and Services Tax, since 1994.
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This year’s report includes three analytical papers:
- An evaluation of the responsiveness of research and development expenditures to tax incentives.
- Gender-Based Analysis Plus of the impacts of federal personal income tax expenditures by diversity factors other than gender.
- A profile of the beneficiaries of the Child Care Expense Deduction.
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Contacts
Media may contact:
Media Relations
Department of Finance Canada
fin.media-media.fin@canada.ca
613-369-4000
General enquiries
Phone: 613-369-3710
Facsimile: 613-369-4065
TTY: 613-369-3230
E-mail: fin.financepublic-financepublique.fin@canada.ca