Automatic Exchange of Tax Information Canada-Switzerland

In order to address the issue of offshore tax evasion, the Canadian federal government signed an automatic exchange of tax information agreement (AEOI) with the Swiss government.   This agreement will see the two countries automatically share bank account/financial account information with each other.  The target bank accounts are those held by residents of the other country.  The purpose is to help the Canadian government detect and address cases of tax evasion and to ensure compliance with Canadian tax laws.
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Arbitrary Assessment

When a taxpayer neglects to file his income and/or other tax returns, taxation authorities issue arbitrary assessments based on existing data that is more or less accurate.

While taxation authorities have full powers to issue arbitrary assessments, it appears that such assessments are often wrong and higher, in favour of such taxation authorities.

In such case, it is in a taxpayer’s best interest to immediately file the missing returns and undertake the necessary discussions in order to remedy the situation.

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