(Image: Calagary Herald)
Canada’s Revenue Authority (CRA) has made it clear that failure to report any income from domestic or foreign sources is illegal, and that it will actively pursue cases of non-compliance. These and other tougher foreign income declaration requirements, were announced by PM Stephen Harper in his latest budget and is part of the country’s crackdown on international tax evasion and “aggressive” tax avoidance.
Commencing this tax year, Canadians holding overseas property costing over CAD100,000 (USD95,220) will have to state which foreign institution or entity holds funds for them outside of Canada. In addition, they must hand over details of the specific country to which the foreign property relates, along with information on the income generated from that property. More here.
Coupled with reforms to the judicial process that will allow the CRA to obtain information from third parties, including banks, the government also wants to introduce mandatory reporting to the CRA of international electronic fund transfers over CAD10,000.
These are some of the actions which are being taken by of the government to crack down on tax cheats; and according to the government, is good news for hard-working Canadians who pay their fair share.