Get a reward for helping Canada Revenue find offshore tax cheats
THE Canada Revenue Agency (CRA) has a new program that offers rewards to individuals who provide precise details about Canadians hiding money or assets offshore and not paying the taxes they owe.
It is not illegal to invest money or hold accounts offshore but Canadian residents must report their worldwide income to the CRA. When Canadian residents do not report all of their income and when they hide this income and their assets in other countries, it places an the taxes they owe.unfair burden on those who pay their taxes. Unpaid taxes mean less money for important programs and services including health care, employment insurance, as well as urban and rural infrastructure projects that benefit all Canadians. The quality of life that all Canadians enjoy is supported by the taxes we pay.
The Offshore Tax Informant Program (OTIP) started in January 2014 and it allows the CRA to pay individuals who provide specific information about Canadians who are not declaring money or assets they have offshore. If the CRA can collect more than $100,000 in federal taxes, the reward will be between 5% and 15% of the amount of federal tax collected. Since it started, the OTIP has received calls from over 600 potential informants and it is reviewing over 120 cases.
Here are two examples where you could call the OTIP:
* Mr X has a business in Canada. You have information that shows that he is only declaring some of the income to the CRA and is sending the undeclared income to foreign country A. You have information on the name and address of the bank where the money is being sent.
* Mrs Y has an investment account and several rental properties in foreign country B. You have information that shows that she makes a lot of money from these investments but is not declaring any of the income to the CRA. You have information about the account (name and address of bank, possibly the account number) and the addresses of the properties.
Can you relate to this situation? Do you have similar details that you think would qualify under the program?
