Canada Gives Cash For Tax Tip Offs

January 17, 2014 Taxation in Canada

Tax in CanadaOTTAWA – Canadian tax authorities are calling for information on any large-scale tax evasion, in exchange for the promise of substantial rewards.

On January 15th the Canadian Revenue Agency (CRA) launched the new Offshore Tax Informant Program (OTIP), allowing anonymous submission of information about “major international tax non-compliance” in an effort to stop Canadians from using offshore entities to hide assets and neglect tax obligations.

According to the CRA, rewards will be offered to informants providing data leading to the recovery of more than CAD 100 000 in unpaid federal taxes, and the exact payout will range between 5 percent and 15 percent of the total taxes recovered.

While announcing the launch of the program, the Revenue Minister Kerry-Lynne Findlay specifically conceded that it may take several years until any rewards are paid, as the payouts will only begin after all recourse rights have passed or have been waived by the offender.

In an effort to prevent abuse of the program, the CRA has cut eligibility of receiving the rewards by any party which directly involved or has been prosecuted for tax charges in relation to the information provided, and by prohibiting any federal or government officers from offering information obtained while fulfilling their duties.

Photo by: Diego Torres Silvestre