Back in April 2016, the world was shocked by the release of the ‘Panama Papers’ – a leak of more than 11.5 million documents which detailed confidential financial and attorney–client information for more than 214,488 offshore entities. The leaked documents were created by Panamanian law firm Mossack Fonseca, with some going back as far as the 1970s. This has led to a rash of investigations regarding tax evasion, including several for the numerous Canadians involved.
In November, the Toronto Star reported on those Canadian investigations, noting that so far the leaked documents have resulted in at least 85 individuals being examined by the Canada Revenue Agency. As of that date, 60 formal audits had been launched of Canadians identified in the leak, with more sure to follow.
These audits are just one part of the $444-million investment in the CRA’s enforcement capacities aimed at increasing the identification and prosecution of tax cheats across the country.
Whether you were involved with the Panama Papers ordeal or not, if you’ve got something that you’ve been trying to hide from the CRA, your time is running out. Their new investigative tactics mean more tax evasion charges are no doubt in the works – no matter the source of the evasion.
Furthermore, a report regarding suggested changes to the Voluntary Disclosure Program released late last year mean that your options for coming clean are running thin. With these suggested changes, the chances of applying for VDP to avoid penalties and interest charges, as well as tax evasion charges, could be greatly diminished, especially if your case involves tax evasion.
At Tax Solutions Canada, we recognize the importance of getting your taxes in order before the CRA finds out about any unreported/undeclared income. Time is not on your side. Get in touch today to discuss your options: 1-888-868-1400.