International Trade Tax Enforcements

International Trade Tax Enforcements

Canada maintains several bilateral tax treaty arrangements with its trading partners globally. Through the conduct of international trade between both nations contract terms include international arbitration and mediation rather than cross-border litigation as the self-regulatory management system to enforce contract terms.

A list of trade taxation partners may be found at: "Citations to the Statutes of Canada and other official documents" Department of Finance Canada.

In the failure to pay appropriate taxes on business transactions bilateral treaty nations would consider it in their best interests to monitor and maintain transparent tax records to ensure that transactions either in Canada or the treaty nation involved have received the appropriate jurisdictional taxation payments.

These incomes would represent the governmental impetus to engage favourable trading status with international trade partners above and beyond the econometrical measures of the benefits of comparative advantage more likely supported by business entities in both trading nations. Such treaties exist under terms such as postal exchange, recognition of passports, reciprocal favourable trade regulations and continued income earning for both the governments involved and the participant trading partners themselves.

Failure to make judicial decisions on taxation fraud would provide unscrupulous trading partners with the freedom to avoid taxation on trade exports or imports and thus reduce a nation's overall taxable income from international business which would undermine perceived benefits.