CRA Takes Action To Enforce Tax Laws
by Mike Godfrey, Tax-News.com, Washington
10 January 2008
The Canada Revenue Agency (CRA) announced this week that it has employed a
variety of tools to identify non-compliance and take action to address mistakes
or tax cheating.
It explained that:
"The CRA is committed to promoting the integrity of the tax system through
a number of compliance activities."
To this end, in 2006-2007, the CRA revealed, it had:
- Identified a total dollar value of non-compliance of about $12.7 billion,
including almost $4.9 billion for international and large businesses;
- Obtained more than 800,000 returns from taxpayers who had not filed their
returns;
- Made almost 820,000 adjustments to individual tax returns after comparing
the information reported by taxpayers with data filed by third parties, such
as employers;
- Reviewed more than 6,400 businesses to ensure they were maintaining proper
books and records;
- Conducted over 393,000 audit and review actions, including 20,635 underground
economy audits, and more than 1,300 investigations of taxpayers suspected
of earning income from illegal activities;
- Undertook legal action that resulted in the conviction of 1,266 taxpayers
who had not filed tax returns or not registered for goods and services tax/harmonized
sales tax (GST/HST);
- Referred 259 income tax and GST/HST criminal investigations for prosecution.
Of the prosecution cases completed in the past year, 98% resulted in convictions;
and
- Recovered $9.7 billion through collections activities.
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