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
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
Michael Maximilien, better known as max or Dr. Max, is a computer scientist with IBM. At IBM Research Triangle Park, he was a principal engineer for the worldwide industry point-of-sale standard: JavaPOS. At IBM Research, some highlights include pioneering research on semantic Web services, mashups, and cloud computing, and platform-as-a-service. He joined the IBM Cloud Labs in 2014 and works closely with Pivotal Inc., to help make the Cloud Found the best PaaS.
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT staff augmentation services for software technology providers. By providing clients with unparalleled niche technology expertise and industry experience, Chetu has become the premiere long-term, back-end software development partner for start-ups, SMBs, and Fortune 500 companies. Chetu is headquartered in Plantation, Florida, with thirteen offices throughout the U.S. and abroad.
At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
One of the biggest challenges with adopting a DevOps mentality is: new applications are easily adapted to cloud-native, microservice-based, or containerized architectures - they can be built for them - but old applications need complex refactoring. On the other hand, these new technologies can require relearning or adapting new, oftentimes more complex, methodologies and tools to be ready for production. In his general session at @DevOpsSummit at 20th Cloud Expo, Chris Brown, Solutions Marketi...
HyperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let's say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...