The CRA confirmed on Thursday that preliminary results show that it is on track to generate over C$13bn from audit efforts for the most recent fiscal year ending 31 March 2017.
Two-thirds of these revenues are the result of the CRA’s audit efforts relating to large businesses and multinational companies.
The Canadian taxman is currently conducting audits of over 820 taxpayers and criminally investigating 20 cases of tax evasion specifically linked to offshore accounts.
Minister of national revenue, Diane Lebouthillier said the CRA is better positioned and has more resources than ever to detect, audit and combat tax evasion and aggressive tax avoidance after receiving close to C$1bn in additional funding.
Between April 2011 and March 2016, the CRA convicted 42 taxpayers with offshore links of tax evasion, involving C$34m in federal taxes evaded, court fines of C$12m and 734 months of jail time.
Nowhere to hide
Lebouthillier said: “Tax evasion and aggressive tax avoidance remains a significant, global multi-billion-dollar concern. As part of its commitment to cracking down on aggressive tax avoidance and evasion, the CRA will continue to build its capacity to detect and crack down on tax cheats.
“Furthermore, the Agency is committed to transparently communicating its activities and results to Canadians – to not only inform and improve its approaches over time – but to ensure a tax system that is responsive and fair for all.
In a separate statement, she said: “[…] I send another strong message to all Canadians: we are building a stronger and more fair tax system, where those who choose to cheat, are no longer able to hide and will face the consequences of their actions.”
Voluntary disclosure programmes
The CRA will continue to offer its voluntary disclosure programme (VDP), enabling taxpayers to recitify their status without facing prosecution, but has proposed several changes to tighten access to it to ensure the tax system is fair.
A finalised revision of the VDP policy is expected in the autumn of 2017.
