Castanet

Millions of dollars owed to ordinary Canadians sits unclaimed in dormant bank accounts and terminated pension plans — and the federal Department of Finance is looking at fresh ways to tax some of that idle money and to reduce or eliminate any interest paid on it.

Proposals to significantly revamp the so-called "unclaimed balances" regime in Canada have undergone more than two years' of consultations and review, and are now in the hands of department bureaucrats.

The goal is to modernize an archaic regime dating from the 1940s. The proposed changes also would save Ottawa money while modestly increasing federal revenues.