This does not mean
that CRA is only chasing rich people with offshore companies and shady business
dealings. They are chasing many average Canadians. As a nation which is
home to many immigrants with ties to other countries, these good citizens have
(in some cases completely innocently and unaware of all the tax laws) built up
savings accounts, bought retirement homes or invested in businesses in their home
country or retained an inheritance there.
In the announcement
made by the Honourable Gail
Shea, Minister of National Revenue and Minister for the Atlantic Canada
Opportunities Agency, and the Honourable Maxime Bernier, Minister of State
(Small Business and Tourism), it was made clear that this would be a top
priority and CRA would have an unprecedented ability to crack-down on those
that they believe fall under this category.
Since this
announcement, we have seen an increase in clients seeking help after CRA has
begun aggressively pursuing them under this new mandate.
Here is how
the investment was distributed:
· $15 million was allocated to put systems in
place with the banks and financial institutions so that in the event of
electronic fund transfers greater than $10,000, CRA will be promptly notified.
· $15 million was allocated to establish new
audit and compliance measures.
CRA established a
dedicated team of CRA agents and investigators to implement the program with
increased powers to audit, investigate, and pursue individuals and businesses
that they believe are hiding money offshore.
These include,
but are not limited to:
· A new program – the Offshore Tax Informant
Program - that allows CRA to pay for intelligence. CRA will now be able to
compensate those who are aware of individuals guilty of international tax
non-compliance. Ex-spouses and former business associates are snitching.
· Requirement that financial institutions
report any electronic fund transfers in excess of $10,000 to CRA.
· Introduce new and additional requirements
for taxpayers with foreign income or properties to provide more information.
· Increase the amount of time CRA has to
re-assess individuals who failed to properly report income.
You can read
the full press release here http://www.cra-arc.gc.ca/nwsrm/rlss/2013/m05/nr130508-eng.html
If you believe
that you may be impacted by this new program it is vital that you get to CRA
before they get to you. The Voluntary Disclosure Program can help you avoid
aggressive penalties or prosecution as a result of offshore income, assets or
investments.
For more
information about international tax evasion, or if you have a tax problem and
need help – please visit www.taxsolutionscanada.com or call 1-888-868-1400.
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