Welcome!

News Feed Item

Tax Alert: Protect Yourself!

OTTAWA, ONTARIO -- (Marketwired) -- 04/28/14 -- As Canadians get busy filing their taxes, the Canada Revenue Agency (CRA) reminds everyone to be cautious of fraudulent tax filing.

If you are approached by a tax preparer offering larger refunds than other preparers, don't be fooled! While the vast majority of preparers provide excellent service to tax filers, there are unscrupulous ones who file false and fraudulent tax returns- and in the end, it's you, the client, who pays.

Remember that even if someone else prepares your tax return, you are responsible for all the information on the return.


--  Be informed about who you are dealing with at tax time and what their
    credentials are.
--  Stay away from tax preparers who offer you false tax claims such as
    charitable donations, child care expense claims, or even business
    expenses or losses. Don't get involved. You will be caught.
--  Get a second opinion. Taxpayers should seek independent advice from a
    reputable tax professional or contact the CRA Individual Income Tax
    Enquiries line at 1-800-959-8281 for further information if they are
    thinking about taking part in such a scheme. Ask questions or enquire
    further before submitting your return.
--  Make sure the tax preparer gives you a copy of your return for your
    records.
--  Never sign a blank tax form.
--  Generally, if it sounds too good to be true, it probably is.

Consequences

Failure to follow tax laws will result in serious consequences. The CRA will audit, reassess and can apply a penalty equal to 50% of the additional tax payable if it can show that a taxpayer knowingly, or under circumstances amounting to gross negligence, made a false statement when filing a return.

The CRA will also undertake criminal investigations and will recommend prosecution against the taxpayers promoting, organizing or participating in such tax schemes. Canadians expect no less, so that the tax system is fair for everyone.

If found guilty of criminal tax evasion, taxpayers face fines of up to 200% of the taxes they sought to evade plus potential jail time of up to five years.

Options

If you have not previously reported all of your income or want to correct a past mistake, the CRA offers a second chance to make things right through its Voluntary Disclosures Program. If you make a full disclosure before any compliance action is started, you may only have to pay the taxes owing plus interest, but not the penalties. Visit www.cra.gc.ca/voluntarydisclosures for more information.

If you think you've been an unknowing victim of fraud or any type of tax or benefit scam, call us at 1-800-959-8281, and immediately notify your bank and the Royal Canadian Mounted Police's Canadian Anti-Fraud Centre by email at [email protected] or by calling 1-888-495-8501.

Anyone who is aware of a tax evasion scheme should contact the CRA's Informant Leads Program with their information. The CRA does not divulge the identity of an informant.

The CRA encourages anyone, no matter where they are in the world, to come forward if they have information about major international tax non-compliance. We strongly recommend that you first call the CRA's Offshore Tax Informant Program (OTIP) at 1-855-345-9042 (North American toll-free number) or 613-960-4265 (collect calls will be accepted), weekdays from 8:00 a.m. to 4:00 p.m., Eastern Standard Time, except on public holidays.

The CRA penalizes tax fraudsters

The CRA is coming down hard on unscrupulous tax preparers, promoters, and other third-party representatives who draw Canadians into dishonest schemes with promises of easy money.

For example, between January 2007 and March 2014, the CRA convicted 35 taxpayers who were part of the tax protester movement, which promotes schemes to avoid taxes. In addition to having to pay the taxes owing, the taxpayers were sentenced to a total of $5.4 million in court fines and 325 months of jail time. Of these 35 taxpayers, four were convicted for "counselling others to evade taxes". These four tax scheme promoters were sentenced to a total of $1.28 million in court fines and 188 months in jail.

In the same time period, the CRA also convicted 45 tax preparers for tax evasion related to their tax affairs or those of their clients. The courts sentenced these tax preparers to a total of over $4.8 million in fines and 659 months of jail time.

Additional reading:

Warning: Making false claims could result in serious consequences

Warning: Schemes that promote big tax losses or deductions are not worth the risk

Warning: Investing in schemes that promise you tax free withdrawals from RRSPs and RRIFs could result in the loss of your retirement savings

Debunking tax myths

Warning: Participating in tax shelter gifting arrangements is likely to result in a tax bill!

Stay connected (www.cra.gc.ca/socialmedia)

To receive updates when information is added to our website, you can:

- Follow the CRA on Twitter @CanRevAgency.

- Subscribe to a CRA electronic mailing list.

- Add our RSS feeds to your feed reader.

- Visit our YouTube Channel for tax-related videos.

Contacts:
Noel Carisse
Media Relations
Canada Revenue Agency
613-952-9184

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Cloud Expo, Inc. has announced today that Andi Mann returns to 'DevOps at Cloud Expo 2017' as Conference Chair The @DevOpsSummit at Cloud Expo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great t...
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, attendees learned about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how ...
"At ROHA we develop an app called Catcha. It was developed after we spent a year meeting with, talking to, interacting with senior citizens watching them use their smartphones and talking to them about how they use their smartphones so we could get to know their smartphone behavior," explained Dave Woods, Chief Innovation Officer at ROHA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
If you haven’t heard yet, CollabNet just put out some very big news for managing and gaining value from DevOps. We introduced CollabNet DevOps Lifecycle Manager (DLM) — a platform designed exclusively for providing a single pane of glass, dashboard, and traceability views across your DevOps toolchain and processes from planning to operations and that can be traced back to planning and development.
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...