There has been a great deal of discussion over the last few months surrounding the government’s commitment to cracking down on tax evasion and their efforts through the Informant Leads Program. Tax evasion is a crime in Canada, one prosecuted often and carrying hefty monetary fines and sometimes even jail time.
Earlier this year, Minister of National Revenue, Diane Lebouthillier, announced that over $444 million will be invested to enhance the Canada Revenue Agency’s (CRA) ability to detect, audit, and prosecute tax evasion. Part of this investment will include the creation of special program dedicated to stopping the organizations that create – and promote – those tax schemes built primarily to allow the wealthy to avoid paying all that is required. Read more on this announcement and the program outlines here: http://news.gc.ca/web/article-en.do?nid=1049689&_ga=1.226812191.340223547.1465238234.
How much money is this program expected to uncover? According to a March Financial Post article, there is a great deal to be found. Although, on average, around 90% of Canadian taxpayers pay their taxes on time and without intervention, there is still an estimated $7.4 billion in tax debts that the program is expected to collect over the next five years. Find the Financial Post article here: http://business.financialpost.com/personal-finance/taxes/federal-budget-2016-ottawa-to-step-up-efforts-on-tax-cheats-in-bid-to-collect-2-6b-in-back-taxes.
If you are not part of that 90%, and owe money that you assume the government is unlikely to find out about, we urge you to reconsider this approach, especially now that more is being invested to uncover it. Additionally, if anyone else knows about your tax dealings, this could come back to bite you thanks to the Tax Informant Leads program, which offers significant rewards to those who assist the CRA in finding tax evaders.
Want to finally clean up those taxes and become compliant? Call Tax Solutions Canada first. Heading straight to the CRA can cost you – big time. We can help you protect yourself and avoid penalties on amounts outstanding. Call us today at 1-888-868-1400.