The federal Department of Finance has established an advisory panel to consider ways to improve the fairness and competitiveness of Canada’s system of international taxation.

The panel’s objectives are to: improve the fairness, economic efficiency and competitiveness of Canada’s system of international taxation; minimize compliance costs for business and facilitate administration and enforcement by the Canada Revenue Agency; and develop practical and readily applicable changes, taking into account existing rules and tax treaties as well as fiscal implications.

The panel will be chaired by Peter Godsoe, former chairman and CEO of the Bank of Nova Scotia. He currently acts as director on the boards of several corporations, including Barrick Gold Corp., Onex Corp. and Rogers Communications Inc.

Kevin Dancey will act as vice chair. Dancey is president and CEO of the Canadian Institute of Chartered Accountants and former CEO and Canadian senior partner of PricewaterhouseCoopers. He also served as assistant deputy minister, tax policy branch, Department of Finance, from 1993 to 1995.

The panel also includes: James Love, a lawyer and founding partner of the Toronto law firm Love & Whalen; Guy Saint-Pierre, a retired chairman of Royal Bank of Canada; Cathy Williams, recently retired as chief financial officer of Shell Canada Ltd.; and Finn Poschmann, director of research, C.D. Howe Institute. The panel will commence work early next month. In the interim, the government will appoint an additional tax practitioner to it.

“Government has an important role to play in creating the right conditions for Canadians and Canadian businesses to invest and thrive,” said Finance Minister Jim Flaherty. “But lowering taxes is not enough. The tax system must also be fair, ensuring that tax considerations do not unduly influence business and investment decisions.”

“Their task will be challenging, but I believe it will lead to a tax system that is internationally competitive, encourages further investment and strengthens the economy,” Flaherty added.

The panel will be seeking the participation of the business community in organizing a series of roundtables. It will submit its final report to the minister of finance by Dec. 1, 2008.