Canada Cracks Down on Domestic Tax Cheats.

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(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.

Related Posts

https://franhendy.com/2013/06/11/canada-to-face-g-8-pressure-over-tax-evasion-response/

https://franhendy.com/2012/10/16/cirque-joins-the-circus-quelle-surprise/

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4 thoughts on “Canada Cracks Down on Domestic Tax Cheats.

  1. They are really trying to butter people up for FATCA. This crack down included catching 500 tax cheats. That’s all they got. Canada has 33 million people the majority of whom gladly pay their taxes. We never saw any articles here in Canada about “cracking down” on “tax cheats” until the government needed to start making excuses for this IGA/FATCA business. What I found striking was it appears Canada does NOT have a “tax cheat” issue at all given the number they “caught” juxtaposed against the size of our population. Hilarious. I have written every time the Globe or other newspaper tried to slant things this way that if that’s all the “tax cheating” Canada has then it’s not an issue here period and certainly no endorsement for changing our Charter of Rights in order to implement a FATCA regime. FATCA only benefits countries that tax on citizenship as it costs those countries more to implement than they will get our of any reciprocity. Reciprocity the U.S. has not promised at all.

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    1. Japan isn’t even interested a reciprocal arrangement with the US under FATCA preceisely because its only going to be a one-way conversation. True Canada is not the land of the ‘tax cheats’ besides the CRA has such good relations with their counterparts around the world that its hardly an issue. Its almost as if G8 countries what to fabricate a tax cheat problem to earn some legitimacy in the ‘tax evasion ‘ debate.

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