Report on Foreign Portfolio Holdings of U.S. Securities at End-June 2020

WASHINGTON The final results from the annual survey of foreign portfolio holdings of U.S. securities at the end of June 2020 were released today on the Treasury website at The survey was undertaken jointly by Treasury, the Federal Reserve Bank of New York, and the Board of Governors of the Federal Reserve System. The next survey will cover holdings at the end of June 2021; preliminary data are expected to be released by February 28, 2022.

Complementary surveys measuring U.S. holdings of foreign securities are also carried out annually. Data from the most recent survey, reporting on securities held at year-end 2020, are currently being processed. Preliminary results are expected to be reported by August 31, 2021.

The survey measured the value of foreign portfolio holdings of U.S. securities as of June 30, 2020, to be $21,954 billion, with $9,168 billion held in U.S. equities, $11,559 billion in U.S. long-term debt securities [/1] (of which $1,489 billion are holdings of asset-backed securities (ABS) [/2] and $10,070 billion are holdings of non-ABS securities), and $1,228 billion held in U.S. short-term debt securities. The previous survey, conducted as of June 30, 2019, measured the value of total foreign holdings of U.S. securities at $20,534 billion, with holdings of $8,630 billion in U.S. equities, $10,991 billion in U.S. long-term debt securities, and $913 billion in U.S. short-term debt securities (see Table A).

Report on Foreign Portfolio Holdings of U.S. Securities at End-June 2020

[/1] Long-term debt securities have an original term-to-maturity of over one year.

[/2] Asset-backed securities are backed by pools of assets, such as pools of residential home mortgages or credit card receivables, which give the security owners claims against the cash flows generated by the underlying assets. Unlike most other debt securities, these securities generally repay both principal and interest on a regular basis, reducing the principal outstanding with each payment cycle.

Table A. Foreign holdings of U.S. securities,

by type of security, as of selected survey dates

(Billions of dollars)


June 30, 2019

June 30, 2020

Long-term securities






Long-term debt









Short-term debt securities






Of which: Official




Table B. Foreign holdings of U.S. securities, by country and type of security,

for the major investing countries into the United States, as of June 30, 2020

(Billions of dollars)

Country or category



Long-term debt

Short-term debt

















United Kingdom








Cayman Islands
















China, mainland (2)
























































Hong Kong
























Korea, South
















































Saudi Arabia
































British Virgin Islands






















of which: Official







Remarks by Acting Under Secretary of International Affairs at the U.S. Department of the Treasury, Andy Baukol, at the Center for Strategic and International Studies

Thank you to CSIS and the Gates Foundation for hosting me and our distinguished panelists today.  It’s a particular honor for me to address this esteemed panel.

The Commission’s new report puts a proper frame on the challenges we face as policymakers at this juncture of the recovery.  Just a few weeks ago, finance ministers and central bank governors from around the world gathered with the leadership of the IMF and World Bank to address this same question:  how to support the most vulnerable and poorest countries through their protracted recoveries from the pandemic and avoid a permanent divergence in the global economy. 

The sobering path of the virus in India recently and the need for another round of lockdowns in Europe remind us that we are, as the IMF puts it, in a “race between the virus and the vaccines” with human lives on the line.

Most advanced countries and some large emerging markets have had the means to support their economies with fiscal and monetary measures while pursuing a solution to the health issue.  And, like the United States, these countries have had greater access to vaccines. 

Of course, we are not out of the woods yet.  The global recovery is still uneven, and uncertainty over the path of the virus remains high.  For major economies, a key takeaway from the last crisis is that we should avoid withdrawing policy support too early and should look to pursue further fiscal and financial policy actions to secure a robust recovery.

Here in the United States, we are poised to have a strong recovery, due in part to substantial fiscal support and a relatively fast vaccine rollout.  We have enacted a $1.9 trillion stimulus package in the American Rescue Plan that is providing states, cities, families, and small businesses with the resources they need to build back better.  The Administration has proposed a $2 trillion package of fiscal support to make a once-in-a-century investment in U.S. infrastructure.  This infrastructure plan would reconstruct our ailing roads and bridges while promoting green investments and new jobs.  And, last night, the President outlined proposals in the American Family Plan to help support the middle class, promote labor force participation, and invest in human capital. 

We are also creating more fiscal space domestically by reforming our tax code. 

The Administration proposal would eliminate incentives to offshore investment, reduce profit shifting, counter tax competition on corporate rates including through a strong global minimum tax on multinational corporations, and provide tax preferences for clean energy production.  Importantly, the revenue from these reforms will be used to make essential investments in infrastructure, R&D, manufacturing, and more to boost the long-term competitiveness of the U.S. economy.

Thanks to our bold domestic actions, the IMF now estimates that GDP in the United States will surpass pre-pandemic levels by the first half of this year, faster than just about any other major economy.  One wise policy maker once said that in addition to a sound substantive policy package, we need to be able to summarize the plan on a bumper sticker.  I think the bumper sticker for these U.S. efforts is “build back better,” a phrase that is also used internationally among our partners. 

That said, we should recognize that many middle- and low-income countries are in a different place.  They lack the ability to undertake a strong fiscal expansion to support their economies and people through this crisis and are constrained in their ability to obtain vaccines. 

To give a sense of the need:  last year, low-income countries and emerging markets deployed about 2 and 6 percent of GDP in fiscal measures on average, compared with an average of 24 percent in advanced economies.  The IMF estimates that low-income countries alone will need to deploy around $200 billion over the next five years just to fight the pandemic—and similar amounts, if not more, to sustain economic growth and recovery.  The high and growing debt burden in many low-income countries is further limiting the ability to respond to the crisis.  Many countries, especially those in Africa, are at heightened risk of debt distress. 

Without further international action to support low-income countries, we risk a stark divergence in economic growth prospects for advanced economies versus low-income and developing countries.  The result would be a deeper and longer-lasting crisis, with mounting problems of indebtedness, more entrenched poverty, and growing inequality.  Embedded in recovery efforts, we have an interest in helping countries pursue sustainable and inclusive growth and strengthen long-term resilience.  Our response will not be fully successful if we end up just where we were before.

We are working with our bilateral partners, the G7, G20, and international institutions to ensure that countries around the world have the resources they need to fight the pandemic and build public health infrastructure to prevent future crises.  Our toolkit includes: financial support to address the virus directly, such as through the COVID-19 Vaccines Global Access (COVAX) Facility; robust support from the IMF and multilateral development banks; bilateral economic and technical assistance; and debt relief where necessary. 

Reinforcing the Global Health Architecture

Our first order of business is to stop the virus by ensuring that vaccinations, testing, and therapeutics are available as widely as possible.

Low-income countries may not achieve widespread vaccine coverage until 2023 or 2024.  More work and funding are needed to address manufacturing shortages, secure vaccine purchases, and finance and facilitate domestic vaccine drives.  This disparity puts the health and economic well-being of all countries at risk, and as an international community, we need to find global solutions to vaccinating the rest of the world. 

The United States is working with our partners to increase vaccine supplies and explore options to share excess vaccines.  At Treasury in particular, we are working to make sure that a lack of financing does not become an obstacle to global vaccination, and that countries are prepared to get shots into arms as soon as the vaccine is available. 

The multilateral development banks are key to this effort.  We are urging the World Bank to use its leadership and convening role to support timely access to vaccines, particularly for the poorest countries. We have also committed $4 billion to the COVAX initiative to help finance vaccine access globally, and we are urging others to increase their support. 

One takeaway for us has been the need to think more long-term about ways to reinforce the global health architecture and its preparedness and response capacities.  In that vein, we are looking at ways in which both finance and health authorities can partner together to strengthen coordination and accountability in the global health architecture to prevent and effectively respond to future outbreaks.

Leveraging the International Financial Architecture for LMICs

Multilaterally, we are considering how to efficiently leverage the resources of international financial institutions to promote a sustainable recovery for the poorest countries. 

Already, the IMF and the multilateral development banks have responded with speed and magnitude to stem the immediate impacts of the crisis.  Last year, the IMF provided about $110 billion to 86 countries, including $55 billion in precautionary programs.  The MDBs provided over $155 billion, a record amount, with the World Bank using over half of its financing over the past year to support emergency operations and address the social and economic response to the crisis.

We should make efficient use of the strengths of these existing tools, while being both flexible and pragmatic in thinking about potential improvements to the toolkit. 

We are taking steps to enhance the concessional assistance tools of the IMF and World Bank.  For low-income countries, the Poverty Reduction and Growth Trust (PRGT) at the IMF has provided substantial financing to support crisis response, with lending last year surpassing that of the previous 10 years combined.  We strongly support continuing the PRGT’s robust support for countries with the greatest need, and we expect that many countries will require longer-term engagements with the Fund as they move from emergency financing into full-fledged IMF programs.  This increased level of lending, in turn, will require increased support from donors, and we are currently looking to provide a U.S. contribution for this purpose and are encouraging others to do the same.

At the World Bank, we have supported the frontloading of grant and concessional loan assistance from the International Development Association (IDA) to help countries address the immediate health crisis, extend social safety nets, purchase and distribute vaccines, and support critical fiscal expenditures.  This frontloading will allow IDA to commit more than $40 billion this fiscal year and maintain similarly elevated levels into next year.  We have joined other donors in accelerating by a year the negotiations for the next IDA replenishment to prevent a sharp drop-off in IDA support just as recovery is starting to take off in the poorest countries.  These resources will be critical in supporting a greener, more resilient, more inclusive, and more sustainable recovery.

Creating Fiscal Space in LMICs

The crisis has not ended the importance of prior international initiatives on developing countries improving domestic revenue mobilization.  A number of countries in the developing world have quite low revenues as a share of their economies, limiting their ability to deal with social needs and public investments. 

Bilaterally, Treasury is providing technical assistance to counterparts in developing and transitional countries as they deal with plummeting revenues and rising fiscal needs.  This includes helping Finance Ministries better raise and manage resources through improved public financial management. 

Yet, the massive impact of the pandemic on countries’ deficits and debts demands a unique and powerful response.  We are making efforts to help low-income countries free up fiscal space that they can then direct toward public health investments and the recovery ahead. 


At the IMF, we support issuing $650 billion in Special Drawing Rights (SDRs) to augment global reserves.  The SDR is an international reserve asset that will increase buffers for all IMF members and give low-income countries the additional liquidity and potential fiscal space for greater spending on vaccines and healthcare. 

The proposed SDR allocation would complement existing multilateral efforts to assist countries in need and directly provide about $21 billion worth of SDRs in liquidity support to low-income countries and over $200 billion to other emerging market and developing countries (excluding China).  We are looking to target late summer for the allocation to be made effective.

We also strongly encourage the G20 and other advanced economies to channel excess SDRs in support of recovery efforts in low-income countries, alongside continued bilateral financing.  For instance, during the current crisis, several countries have used part of their existing SDR holdings to expand the IMF’s concessional financing through loans to the Poverty Reduction and Growth Trust’s (PRGT).  Total new PRGT loan resources mobilized since the start of the crisis amount to about $24 billion, of which about $15 billion is from existing SDRs.  We are also exploring initiatives to maximize support for low-income countries and enhance transparency in the exchange of SDRs. 

Debt Relief and Common Framework

Many low-income countries face heightened debt vulnerabilities.  While some may only need a deferral of debt service payments to create fiscal space, others will need deeper debt relief.  Providing this debt relief expeditiously will be critical to helping these countries, and in particular those in Africa, avoid a “lost decade.”

The G20 and Paris Club initiative to suspend debt service (DSSI)—established at the outset of the pandemic—has provided liquidity relief to help in the fight. The G20 extended it a final time through the end of this year. 

For countries facing unsustainable debt loads or heightened liquidity risks, we strongly urge them to move onto the G20 Common Framework, which is a critical new tool.  The Common Framework provides a multilateral venue for countries to deal with prolonged liquidity problems and unsustainable debt burdens in a comprehensive, fair, and transparent manner.  In a reflection of how countries finance themselves today, the Common Framework brings all major official bilateral creditors, including China, to the table and requires debtor countries to seek comparable treatment from the private sector to foster fair-burden sharing. 

The Common Framework is linked to an IMF program that helps ensure that debt restructuring efforts are accompanied by credible policy reforms so that low-income countries can break out of the lend-and-forgive cycle and return to sustainable growth paths. 

Of course, implementation of the Common Framework will not be easy, particularly with China and other non-traditional creditors.  We strongly urge all creditors to fully and transparently implement the Common Framework to avoid unnecessary delays that can prolong debt overhangs and exacerbate growth shocks.  

So far, Chad, Ethiopia, and Zambia have requested treatment under the Common Framework.  And we are open to extending the Framework to middle-income countries, small island developing states, and others in the future.  For now, we hope the Common Framework can set a new norm of efficient multilateral debt treatment—with participation by all key creditors—that could help inform similar exercises in middle-income countries.

Creating Space for Essential Investments

In addition to fighting the pandemic, low-income countries face the challenge of investing in the economic recovery ahead.  Climate change poses an especially grave threat to their fiscal space and development gains, and we need to help developing countries grow and enhance resilience by meeting their climate goals along with their development objectives. 

At the Leaders’ Summit on Climate last week, the Administration released the first-of-its-kind U.S. International Climate Finance Plan, which lays out a strategic vision for how we plan to double our climate finance by 2024.  Notably, we are pushing the MDBs to increase their own climate finance targets, including for adaptation, to mobilize higher levels of climate finance for these countries, and to phase out support for fossil fuel energy projects.


In closing, much of the Covid era can be characterized in “twos”:  the twin health and economic crises we face from the pandemic; the risk of a two-speed recovery within and across countries based on divergent capabilities to contain the virus and funding for health and livelihoods; the dual fiscal need for short-term economic support as the virus runs its course and medium-term investments in sustainable growth once the virus has passed; and the importance of multilateral efforts, in both international financial and health spheres, so that we can more ably help countries in need respond to the global health emergency and ensure the recovery is global, inclusive, and swift.

No two crises are alike.  Each one tests and tempers the measures we have put in place and our resilience as an international community.  At Treasury, the last 14 months of this crisis have put fresh urgency on how we can work together with our partners to enhance pandemic preparedness against future shocks.

I look forward to hearing the creative policy ideas and reflections by the panelists today.  I was once told that US Treasury bureaucrats are lacking in imaginative thinking.  But, former US Treasury officials do not have that problem.  And UK bureaucrats are well known for their imagination.  So, I expect a robust and lively exchange. 


READOUT: Secretary of the Treasury Janet L. Yellen’s Call with Nadia Calviño, Spanish Second Deputy Prime Minister and Minister for Economy and Digitalization

WASHINGTON – Earlier today, Secretary of the Treasury Janet L. Yellen spoke with Spanish Second Deputy Prime Minister and Minister for Economy and Digitalization Nadia Calviño. Secretary Yellen conveyed her intention to deepen cooperation with Spain to address key regional and global challenges, including supporting a strong recovery from the COVID-19 pandemic, and shared priorities in Latin America, such as addressing the humanitarian crisis in the Northern Triangle of Central America. Secretary Yellen also discussed the U.S. Administration’s efforts to establish a robust global minimum tax.


READOUT: Deputy Secretary of the Treasury Wally Adeyemo’s Discussion on Paid Leave with Pacific Northwest Small Business Owner and Employee

Today, Deputy Secretary Wally Adeyemo met virtually with Tiffany Turner, co-owner of Adrift Hospitality, a group of boutique hotels in Washington and Oregon, and Luz Alcantar, an Adrift Hotel Property Manager, to discuss the American Rescue Plan’s paid leave benefits. The discussion was facilitated by the Main Street Alliance. Deputy Secretary Adeyemo asked about the challenges Ms. Turner and Ms. Alcantar faced weathering the COVID-19 pandemic as a small business owner and operator in the hospitality space.

The Deputy Secretary commended Ms. Turner and Ms. Alcantar for using the Families First Coronavirus Relief Act (FFCRA) tax credits to provide paid leave to employees for reasons related to COVID-19, noting that paid sick leave not only benefited the employees, but also the community by limiting exposures. The three specifically discussed changes the ARP made to the FFCRA tax credits that allow small business owners to offer paid time off for employees to get vaccinated, and if needed, recover from the vaccination. Deputy Secretary also noted that the ARP extends the paid sick and family leave tax credit for wages paid through September 31, 2021; increased the tax credit for the number of weeks that an employee can seek paid family leave to 12 weeks from 10 weeks; and resets the amount of the tax credit available to small- and mid-sized employers for employees’ FFCRA sick and family leave beginning April 1, 2021.

Deputy Secretary Adeyemo stressed his and Secretary Janet L. Yellen’s commitment to providing small businesses with the support they need to encourage employees to get vaccinated and make it to the other side of the pandemic, as well as the Biden Administration’s commitment to expanding access to paid sick and family leave.


READOUT: Deputy Secretary of the Treasury Wally Adeyemo’s Roundtable Discussion with Human Rights and Anti-Corruption NGOs

Today, Deputy Secretary of the Treasury Wally Adeyemo met virtually with over two dozen NGOs focused on human rights and anti-corruption as part of the Treasury-led review of U.S. economic and financial sanctions. Deputy Secretary Adeyemo thanked the organizations for their interest in and support of the Global Magnitsky (GloMag) sanctions program that represents the an important example of America’s commitment to protect and promote human rights and combat corruption around the world, as well as to protect our financial system from involvement in these malign activities. The Deputy Secretary also told the groups that Treasury is made stronger because of its relationships with NGOs, and that it values the information organizations bring to us to shed light on corruption and human rights abuses seen on the ground.

Deputy Secretary Adeyemo also discussed Treasury’s review of use of economic and financial sanctions. Deputy Secretary Adeyemo noted the review is engaging with a range of internal and external stakeholders to develop a fulsome understanding of the expectations and impacts of the gamut of U.S. economic and financial sanctions, and to ensure a diverse set of views are taken into account during the review including from the private sector, civil society organizations, Congress, and other U.S. government agencies. The Deputy Secretary explained that the Treasury Department is balancing the benefits against the costs of sanctions use with an eye towards ensuring they remain a strong, viable option for policymakers for decades to come. Through the sanctions review, the Deputy Secretary said he seeks to have the ability to use this important economic and financial tool in a way that reflects America’s values abroad and protects the domestic financial system.


Statement by Secretary of the Treasury Janet L. Yellen on the American Families Plan

Tonight, President Biden placed education and caregiving squarely where they should be in our national discussion – as core elements of a strong economy. 
Historically, childcare and other social programs to help families haven’t been seen as crucial investments underpinning American growth and productivity.  But this is a failure of perspective.  
A healthy U.S. economy requires a vibrant labor market with high rates of participation. Raising U.S. rates of participation to levels comparable to those of other advanced nations  requires widespread change in our labor policies. Indeed, there are many reasons for why  U.S. labor force participation lags,  but an undeniable one is the lack of support for people as they raise children and care for older relatives.  Funding policies that help children and families will boost labor force participation and productivity, resulting in an improvement in the standard of living.  
This is the President’s vision: To recognize that our work lives – and our family lives – are inextricably linked, and if we want to improve one, then we must improve the other. 
The President pays for these investments by addressing another historic challenge: the country’s unfair tax code. Over the next decade, the American people are expected to lose out on $7 trillion in revenue, in large part because some of the highest earners aren’t reporting their actual income. In addition to strengthening  compliance, the plan will also close capital gains loopholes and treat investment earnings the same as wages for high-income taxpayers. 
A fairer tax code in exchange for a higher quality of life for most American families? There are some economic trade-offs that are tough calls. This is not one of them. 


READOUT: Secretary of the Treasury Janet L. Yellen’s Meeting with Members of the Retail Industry Leaders Association

Earlier today, Secretary Janet L. Yellen met virtually with CEOs and CFOs of the biggest retail companies in the U.S. who are members of the Retail Industry Leaders Association (RILA), the trade association for U.S.-based leading retail companies. The Secretary discussed the positive impact of the Administration’s American Rescue Plan and the merits of the American Jobs and American Families Plans. The Secretary highlighted the ways in which the Administration is working to build back better, including addressing the U.S.’s long history of underinvestment in our public goods like airports, roads, bridges, broadband, R&D, job training, and the challenges faced by families including soaring costs of childcare and health care; insufficient paid leave; lack of affordable education. Secretary Yellen also discussed how addressing these underinvestments and challenges will benefit the retail sector. 
The Secretary and retail executives also discussed climate finance, corporate tax rates, trade, supply chains including the labor supply, how the pandemic has affected the retail sector and how the industry has responded.
The Secretary relayed that she is increasingly optimistic that the retail sector will witness a strong rebound over 2021, and affirmed her commitment to helping Americans and businesses make it to the other side of the pandemic and be met there by a robust recovery. 


Nearly 2 million more Economic Impact Payments disbursed under the American Rescue Plan; continuing payments reach approximately 163 million

WASHINGTON — Today, the U.S. Department of the Treasury, the Internal Revenue Service, and the Bureau of the Fiscal Service announced they are disbursing nearly 2 million payments in the seventh batch of Economic Impact Payments from the American Rescue Plan.

Today’s announcement brings the total disbursed so far to approximately 163 million payments, with a total value of approximately $384 billion, since these payments began rolling out to Americans in batches as announced on March 12. 

The seventh batch of payments began processing on Friday, April 23, with an official payment date of April 28, with some people receiving direct payments in their accounts earlier as provisional or pending deposits. Here is additional information on this batch of payments:

  • In total, this batch includes nearly 2 million payments with a value of more than $4.3 billion.
  • More than 1.2 million payments, with a value of over $3 billion, went to eligible individuals for whom the IRS previously did not have information to issue an Economic Impact Payment but who recently filed a tax return. 
  • This batch also includes additional ongoing supplemental payments for people who earlier this year received payments based on their 2019 tax returns but are eligible for a new or larger payment based on their recently processed 2020 tax returns. This batch included more than 730,000 of these “plus-up” payments, with a value of over $1.3 billion.
  • Overall, this seventh batch of payments contains about 1.1 million direct deposit payments (with a total value of $2.5 billion) and about 850,000 paper check payments (with a total value of more than $1.8 billion).

Additional information is available on the first six batches of Economic Impact Payments from the American Rescue Plan, which processed weekly on April 16, April 9, April 2, March 26, March 19, and March 12.

The IRS will continue to make Economic Impact Payments on a weekly basis. Ongoing payments will be sent to eligible individuals for whom the IRS previously did not have information to issue a payment but who recently filed a tax return, as well to people who qualify for “plus-up” payments.

Special reminder for those who don’t normally file a tax return

Although payments are automatic for most people, the IRS continues to urge people who don’t normally file a tax return and haven’t received Economic Impact Payments to file a 2020 tax return to get all the benefits they’re entitled to under the law, including tax credits such as the 2020 Recovery Rebate Credit, the Child Tax Credit, and the Earned Income Tax Credit.  Filing a 2020 tax return will also assist the IRS in determining whether someone is eligible for an advance payment of the 2021 Child Tax Credit, which will begin to be disbursed this summer.

For example, some federal benefits recipients may need to file a 2020 tax return – even if they don’t usually file – to provide information the IRS needs to send payments for a qualifying dependent. Eligible individuals in this group should file a 2020 tax return as quickly as possible to be considered for an additional payment for their qualifying dependents.

People who don’t normally file a tax return and don’t receive federal benefits may qualify for these Economic Impact Payments. This includes those experiencing homelessness, the rural poor, and others. Individuals who didn’t get a first or second round Economic Impact Payment or got less than the full amounts may be eligible for the 2020 Recovery Rebate Credit, but they’ll need to file a 2020 tax return. See the special section on Claiming the 2020 Recovery Rebate Credit if you aren’t required to file a tax return.

Free tax return preparation is available for qualifying people.

The IRS reminds taxpayers that the income levels in this third round of Economic Impact Payments have changed. This means that some people won’t be eligible for the third payment even if they received a first or second Economic Impact Payment or claimed a 2020 Recovery Rebate Credit. Payments will begin to be reduced for individuals making $75,000 or above in Adjusted Gross Income ($150,000 for married filing jointly). The payments end at $80,000 for individuals ($160,000 for married filing jointly); people with Adjusted Gross Incomes above these levels are ineligible for a payment.

Individuals can check the Get My Payment tool on to see the payment status of these payments. Additional information on Economic Impact Payments is available on


Investing in the IRS and Improving Tax Compliance

A well-functioning tax system requires that all taxpayers pay what they owe. An unfortunate characteristic of the current system, however, is an asymmetric adherence to tax law by the nature of income received. While roughly 99% of the taxes due on wages are remitted to the Internal Revenue Service, compliance across other forms of income is substantially less, as the IRS has difficulty verifying whether income from opaque sources is properly reported. Noncompliance is concentrated at the top of the distribution: A recent study found that the top 1 percent failed to report 20 percent of their income and failed to pay nearly $175 billion in taxes owed annually.

Lower levels of compliance not only impact tax progressivity, but they also lower tax revenue and deteriorate our nation’s fiscal position. Left unaddressed, this tax gap— the difference between taxes owed to the government and taxes actually paid—will total about $7 trillion over the course of the next decade. This massive gap in revenue means policymakers must choose between higher taxes elsewhere in the tax system, lower spending on fiscal priorities, or rising budget deficits.

The tax gap has many underlying causes, chief among them being insufficient resources. Budget cuts over the past decade have resulted in an agency that lacks the capacity to address sophisticated tax evasion efforts. Over this period, audit rates for taxpayers making over $1 million in income have fallen by almost 80 percent.

A robust and sustained investment in the IRS is necessary to ensure it can do its job of administering a fair and effective tax system. The IRS requires more resources to conduct investigations into underreported income and to pursue high-income taxpayers who evade their tax liability through complex schemes. It requires 21st century technology to unpack complex tax returns and track income across various opaque sources. And, it requires access to better information so that the agency can target its efforts at the most egregious offenders, while helping compliant taxpayers avoid unnecessary and costly audits. This investment will also put the IRS in a position to provide taxpayers with timely answers to questions.

These considerations provide the basis for a series of proposals in the American Families Plan that overhaul tax administration and provide the IRS the resources and information it needs to address tax evasion. All told, these reforms will generate an additional $700 billion in tax revenue over the course of a decade, net of the investments made. Specifically, the tax administration reforms will:

  • Provide the IRS the resources it needs to stop sophisticated tax evasion. Over the last decade, a declining IRS budget has deprived it of the resources it needs to effectively enforce our nation’s tax laws. After accounting for inflation, the IRS budget has fallen by about 20 percent, and its workforce has been depleted, with the number of complex revenue agents (who are dedicated to high-end evasion and large corporate cases) falling by 35 percent. As a result, IRS audits have fallen across the board, and particularly for the highest earners.

    The IRS has made clear that it needs additional resources to pursue costly tax evasion. These are not easy cases to resolve; the average investigation of a high-wealth individual takes two years to complete and often requires the IRS to commit substantial resources. Moreover, the lack of adequate investment in compliance has significant revenue consequences. Indeed, several hundred taxpayers who committed the most egregious form of evasion—failing to file taxes all together—cost the federal government $10 billion over a period of just three years.

    A key component of this initiative is the provision of a sustained, multi-year stream of funding. Altogether, the proposal directs roughly $80 billion to the IRS over a decade to fund an array of priorities—including overhauling technology to improve enforcement efforts, which is more effectively implemented with the assurance of a consistent funding stream. This investment will also facilitate the IRS hiring and training auditors to focus on complex investigations of large corporations, partnerships, and global high-wealth individuals. The President’s proposal directs that additional resources go toward enforcement against those with the highest incomes, rather than Americans with actual income of less than $400,000.

  • Provide the IRS with more complete information. When the IRS has information from third parties, income is accurately reported, and taxes are fully paid. However, high-income taxpayers disproportionately accrue income in opaque sources—like partnership and proprietorship income—where the IRS struggles to verify tax filings. As a result, up to 55 percent of taxes owed on these less visible income streams is unpaid, with disproportionate levels of non-compliance for those at the top of the income distribution.
    GAO and IRS research confirm that providing the IRS a mechanism for cross-checking the accuracy of such tax filings is a proven way to improve compliance. This reform aims to provide the IRS information on account flows so that it has a lens into investment and business activity—similar to the information provided on income streams such as wage, pension, and unemployment income.
    Importantly, this proposal provides additional information to the IRS without any increased burden for taxpayers. Instead, it leverages the information that financial institutions already know about account holders, simply requiring that they add to their regular, annual reports information about aggregate account outflows and inflows. Providing the IRS this information will help improve audit selection so it can better target its enforcement activity on the most suspect evaders, avoiding unnecessary (and costly) audits of ordinary taxpayers.

  • Overhaul outdated technology to help the IRS identify tax evasion. Elements of IRS IT systems are antiquated and make it difficult for the IRS to identify those who are not paying their taxes and to help those who want to comply. The President’s proposal provides the IRS much-needed resources to modernize its technological infrastructure. Leveraging 21st century data analytic tools will enable the IRS make use of new information about income that accrues to high-earners and will help revenue agents unpack complex structures, like partnerships, where income is not easily traced.

  • Improve taxpayer service and deliver tax credits. A well-functioning tax system requires that taxpayers be able to interact with the IRS in an efficient and meaningful manner. Inadequate resources often mean that IRS service agents are unable to provide taxpayers timely answers to their tax questions. Service enhancement will improve the ability of the IRS to communicate with taxpayers securely and promptly. Importantly, the proposal also includes the necessary resources to ensure that the IRS effectively and efficiently delivers tax credits to families and workers, including newly expanded Child Tax Credits and Child and Dependent Care Tax Credits.

  • Regulate paid tax preparers. Taxpayers often make use of unregulated tax preparers who lack the ability to provide accurate tax assistance. These preparers submit more tax returns than all other preparers combined, and they make costly mistakes that subject their customers to painful audits, sometimes even intentionally defrauding taxpayers for their own benefit. The President’s plan calls for giving the IRS the legal authority to implement safeguards in the tax preparation industry. It also includes stiffer penalties for unscrupulous preparers who fail to identify themselves on tax returns and defraud taxpayers (so called “ghost preparers”).



Valcourt, Quebec, April 27, 2021 – BRP Inc. (TSX:DOO; NASDAQ:DOOO) (the “Company”) announces that its annual general meeting of shareholders (the “Meeting”) will be held on Thursday, June 3, 2021 at 11:00 a.m. EDT and will be conducted by live webcast.

The Company is holding the Meeting as a completely virtual meeting, where shareholders regardless of geographic location and equity ownership will have an equal opportunity to attend.  Registered shareholders and duly appointed proxyholders are strongly encouraged to vote their shares in advance of the Meeting as described in the Company’s Management Information Circular posted concurrently herewith on, on SEDAR and on EDGAR, or to vote virtually at the Meeting online. Voting results for each of the resolutions will be announced after the Meeting and reported on SEDAR.

Shareholders who wish to participate online can go to and click “I have a login” and then enter the 15-digit control number located on their form of proxy and the password “brp2021”. Anyone can join the Meeting as a guest by clicking on “Guest” and completing the online form. Guests will be able to listen to the Meeting but will not be able to vote or ask questions.

Following the Meeting, the webcast of the Meeting will be accessible on the Company’s website at until next year’s annual meeting of shareholders.

Registered shareholders and duly appointed proxyholders will also be entitled to submit questions to the Company in advance of the Meeting by e-mail at [email protected], and during the Meeting through the platform available at, which questions will, subject to certain verifications by the Company, be addressed at the Meeting. Questions sent in advance by e-mail must be provided by no later than 11:00 a.m. (Eastern time) on June 1, 2021, or if the Meeting is postponed or adjourned, by no later than 48 hours prior to the time of such postponed or adjourned meeting (excluding Saturdays, Sundays and holidays).

About BRP
We are a global leader in the world of powersports vehicles, propulsion systems and boats, built
on over 75 years of ingenuity and intensive consumer focus. Our portfolio of industry-leading and distinctive products includes Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, Can-Am on-and off-road vehicles, Alumacraft, Manitou, Quintrex boats and Rotax marine propulsion systems as well as Rotax engines for karts and recreational aircraft. We complete our lines of products with a dedicated parts, accessories and apparel business to fully enhance the riding experience. With annual sales of CA$6 billion from over 130 countries, our global workforce is made up of more than 14,500 driven, resourceful people.

Ski-Doo, Lynx, Sea-Doo, Can-Am, Rotax, Evinrude, Manitou, Alumacraft, Telwater and the BRP logo are trademarks of Bombardier Recreational Products Inc. or its affiliates. All other trademarks are the property of their respective owners.

Caution concerning forward-looking statements
Certain statements included in this press release are “forward-looking statements” within the meaning of Canadian and United States securities laws, including statements that are not historical facts. Forward-looking statements are typically identified by the use of terminology such as “may”, “will”, “would”, “should”, “could”, “expects”, “forecasts”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “outlook”, “predicts”, “projects”, “likely” or “potential” or the negative or other variations of these words or other comparable words or phrases. Forward-looking statements, by their very nature, involve inherent risks and uncertainties and are based on a number of assumptions, and are subject to important risks and uncertainties, both general and specific, made by the Company in light of its experience and perception of historical trends. Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Forward-looking statements are subject to numerous factors, many of which are beyond BRP’s control, including the risk factors disclosed previously and from time to time in BRP’s filings with the securities regulatory authorities in each of the provinces and territories of Canada and the United States, available on SEDAR at or EDGAR at, respectively. The forward-looking statements contained in this press release represent BRP’s expectations as of the date of this press release (or as of the date they are otherwise stated to be made), and are subject to change after such date. However, BRP disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.