The Canada Revenue Agency is warning that tax preparers that help taxpayers cheat on their taxes, and promoters involved with shady tax avoidance schemes, will face penalties.

The CRA issued a statement today reporting that there are currently 71 audits involving promoters, and 15 involving tax preparers, underway.

“Since third-party penalty legislation was introduced in June 2000, close to 100 third-party penalty audits are either in progress or have been completed,” it says.

Since 2000, 19 tax preparers have been assessed nearly $1.7 million in third-party penalties, it reports. Also, the CRA has revoked the registration of 33 charities, in situations involving tax shelter gifting arrangement schemes.

“Canadians should know that honest tax preparers and promoters are an important part of the tax system, and that the vast majority are professionals who fully respect tax laws. But there are some who engage in fraudulent activity,” said Keith Ashfield, Minister of National Revenue.

“We want Canadians to be educated about different types of fraudulent activity and know that unscrupulous third parties who victimize law‑abiding citizens can be severely penalized under the law,” he added.

IE