As it promises to crack down on international tax evasion, the federal government reports that it has ramped up the Canada Revenue Agency’s (CRA) auditing resources over the past few years.
The latest federal budget included a number of measures designed to tighten tax enforcement, including a new bounty program, increased reporting requirements for financial institutions and taxpayers, and a streamlined judicial process.
Cracking down on international tax cheats
On Monday, Gail Shea, Minister of National Revenue, Gail Shea, said the government has also staffed up the CRA to help tackle these issues.
“Our government has long recognized that this is a serious issue, and we will continue to take strong action to tackle international tax evasion and aggressive international tax avoidance,” said Shea.
“That’s why we have increased the resources available to the CRA for auditing those who may seek to use offshore accounts or other means to avoid paying their fair share of taxes. This is good news for law‑abiding Canadian taxpayers.”
She says the number of audit positions in the CRA’s International Audit Program (IAP) has increased by almost 40% since 2006, and the number in its Aggressive Tax Planning Program (ATPP) has nearly doubled.
The IAP’s mandate is to ensure compliance with tax provisions and treaties administered by the CRA that relate to international cross-border transactions between related parties. The ATPP examines transactions suspected of circumventing the law and to deter abusive transactions; and it focuses on the abusive use of tax havens and international transactions.
“Our government takes the abuse of Canada’s tax laws very seriously and we are dedicated to cracking down on those who attempt to cheat the system,” added Shea. “Increased international auditing resources at the CRA and the new measures announced in Economic Action Plan 2013 will provide additional tools to combat tax cheats and improve the integrity of Canada’s tax system.”