fraud-look-closely

The CRA supports the five recommendations set out in the recent letter from the Offshore Compliance Advisory Committee (OCAC) on gathering and analyzing large amounts of raw tax data and using it as a tool to combat offshore tax evasion.

Close collaboration with international partners and access to better data are two key elements to support the government’s efforts to combat tax evasion and aggressive tax avoidance, writes Diane Lebouthillier, minister of National Revenue, in a statement.

Read: Filing the T3 tax return

“The CRA already has sophisticated IT tools in place to analyze various data sources and will continue to take the necessary actions to improve its risk assessment processes and systems,” she notes.

“I can assure you that our Government is resolute in its desire to put an end to tax cheating, whether it be here in Canada or involving the use of offshore structures, and this is why we have made historic investments over the last two budgets to crack down on tax evasion and aggressive tax planning,” adds Lebouthillier. “The CRA continues to prioritize obtaining better data, improving its use of data to target its compliance actions, and achieving results in its fight against offshore tax evasion and aggressive tax avoidance.”

Read: CRA conducts Panama Papers searches in multiple Canadian cities

Starting in 2018, the CRA will begin to receive international banking data through the Common Reporting Standard (CRS), which allows for the automatic exchange of information between countries to combat aggressive tax planning. Close to 100 countries are committed to implementing the CRS, which will give us access to additional information to better identify tax cheats and deal severely with them.

“In collaboration with our international partners, we will continue our efforts to guarantee a tax system that is fair and equitable and that forces those who choose to break the law to face the full consequences of their actions,” writes Lebouthillier.

Originally published on Advisor.ca
Add a comment

Have your say on this topic! Comments are moderated and may be edited or removed by
site admin as per our Comment Policy. Thanks!