Among Auditor General Sheila Fraser's latest findings, the fact that some corporations are apparently deliberately overpaying taxes to the Canada Revenue Agency in order to benefit from generous interest rules would seem to be one which cries out for correction. But it's worth pointing out a few other questions about the practice.
After all, if a total of $4 billion is currently held in federal coffers primarily in order to claim interest until the CRA picks up on the mistake, that would seem to cast into doubt whether the federal government's reported corporate tax revenue actually represents the amount which should have been paid. And while the $4 billion might seem like a small drop in the bucket compared to corporate tax revenues generally, it could easily represent the difference between a deficit and a surplus - particularly for the 2008-09 year when the Cons were otherwise hoping to claw their way into the black against all odds.
So is there reason for concern that Canada's fiscal situation is worse than it's been presented due to the CRA's practice?
And on a more flippant note, if the Cons do properly rectify a problem which has apparently existed for nearly two decades, how long will it take for a "grassroots" Canadian Association of Canada Revenue Agency Depositors to spring up to demand a reversal?
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