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're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
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 ...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, presented an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He then expounded on the industry issues he frequently came up against as an analyst, and ...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
FinTechs use the cloud to operate at the speed and scale of digital financial activity, but are often hindered by the complexity of managing security and compliance in the cloud. In his session at 20th Cloud Expo, Sesh Murthy, co-founder and CTO of Cloud Raxak, showed how proactive and automated cloud security enables FinTechs to leverage the cloud to achieve their business goals. Through business-driven cloud security, FinTechs can speed time-to-market, diminish risk and costs, maintain continu...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.