As we move into 2025, here’s a look back at some of the top justice moments of 2024:
10. Apple ordered to pay billions to Ireland
In September, Apple was ordered to pay Ireland a whopping $19 billion in unpaid taxes by Europe's top court, putting an end to an eight-year dispute. While the case was unusual, with Ireland actually resisting the win, this was a landmark ruling in the larger fight to make corporations pay their fair share.
9. Productivity linked to inequality, not taxation
Over the summer, we released a report that clearly reveals that capital gains inclusion rates have no impact on productivity. In fact, inequality has a substantial impact on productivity, making the case that when wealth is evenly distributed, people are more likely to be able to participate in Canada’s economic growth.
8. Canada adopts the Digital Services Tax
After years of advocacy, the DST received royal assent in Canada. We’ve been pushing hard to have big tech multinationals like Uber, eBay, and Amazon pay taxes on their Canadian profits and we were thrilled to see this important policy finally put in place.
7. Canada’s tax system is regressive, not progressive
Our report with the Canadian Centre for Policy Alternatives revealed that, contrary to popular assumption, Canada’s tax system is regressive.Canada’s wealthiest citizens have the lowest tax burden. This landmark study showed how, over the course of nearly two decades, Canada’s tax system has increasingly favoured the ultra-rich, contributing to growing income inequality and entrenching a deeply disproportionate distribution of wealth.
6. Tax on billionaires hot topic at G20
Gabriel Zucman, the economist who revealed that billionaires pay an average of only 0.3% tax on their wealth, is the architect of the global wealth tax policy promoted by allies at G20 meetings in 2024. Supporters have suggested that countries impose exit taxes to ensure the policy is effectively implemented. While the G20 did not explicitly pass a billionaires tax, it did recognize the need to tax extreme wealth and the issue will certainly gain momentum in 2025.
5. Excess profits support heating up
Our recent report on record corporate profits in Canada makes the case for implementing an excess profits tax across all sectors. From 2021 through 2023, Canadian corporations collected $441 billion more in profits than expected based on their average profit margin from 2017 to 2020. While large corporations continue to generate enormous profits, little of that money is going back into the economy. Instead, much of it is going to wealthy shareholders. More and more progressive parties and organizations have been calling for an excess profits tax in Canada, and we are happy to hear the chorus swell in support of this important approach to taxing the rich.
4. Global Minimum Tax finally in effect
The Global Minimum Tax Act introduced a 15% global minimum tax on the income of certain large multinational enterprises in May. We’re grateful to have worked with our international allies for their diligent work on this impactful piece of international cooperation. A crucial step in the fight against corporate tax avoidance.
3. Housing crisis fuelled by tax breaks for real estate
As the housing crisis rages in Canada, our report clearly outlines how tax breaks for financial landlords are fuelling the housing crisis. Real estate investment trusts (REITs) own 20% of our purpose-built rental housing. The top seven REITs in Canada paid out over $433 million to their shareholders while contributing to skyrocketing rents and unfair evictions. The capital gains loophole and reduced taxation for REITs have rapidly accelerated the financialization of housing. We need to end these tax giveaways and use that revenue to fund affordable housing.
2. UN Tax Convention moves forward with Terms of Reference
We celebrated another huge step in international tax cooperation as the Terms of Reference for the UN Tax Convention were developed and passed. While Canada’s opposition to this was disappointing, we are thrilled that a broad framework for tax fairness at the UN is finally taking shape.
1. Capital gains loophole partially closed in Canada
The headline of the year for tax fairness in Canada was, hands down, the shrinking of the capital gains loophole. While high-paid lobbyists came out swinging against this step towards a more equitable tax system, progressives banded together to spread the word about the importance of ending this unfair tax break. If 100% of workers’ income is subject to taxation, so should income obtained by wealthy investors. A buck is a buck!
It’s been a big year for tax fairness in Canada and beyond, and we are grateful for the advocacy of our allies and the strength of our supporters. We are looking forward to pushing harder than ever for economic equality for all in 2025. To help fuel our fight for tax justice in Canada, you can lend your voice here and donate here.
