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CRA Offering Cash For Offshore Tax Evasion Tips 

Canadian Tax Adviser

 

January 21, 2014

 

Paul Lynch
Ottawa, National Tax

 

The CRA has launched an informant's hotline as part of its Offshore Tax Informant Program, intended to focus on international tax evasion and aggressive tax avoidance. The CRA's program, part of its larger Stop International Tax Evasion Program, pays individuals with information about major international tax non-compliance a percentage of the federal tax collected as a result of information provided.

Background
The 2013 federal budget introduced the Stop International Tax Evasion Program, which rewards individuals that provide knowledge of international tax non-compliance to the CRA that results in the collection of outstanding taxes. The federal tax collected must result in assessments or reassessments of federal tax exceeding $100,000. The payments to the individual will be up to 15% of the federal income tax collected. For details, see TaxNewsFlash-Canada 2013-10, "2013 Federal Budget Highlights".

 

Offshore Tax Informant Program
The CRA advises that it will review all information given by an individual to decide if there is evidence of major international tax non-compliance that would ultimately lead to additional taxes being assessed and collected. Where the potential additional assessment of federal tax, excluding interest and penalties, is more than $100,000, the CRA will enter into a contract with the individual providing the information.

 

A payment will be made to the individual after the tax debt has been collected and all recourse rights associated with the assessed tax have expired; and a payment will not be made to an individual who has been convicted of tax evasion related to the information provided.

 

For more information, contact your KPMG adviser.

 

 

 

 

 

Information is current to January 21, 2014. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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