“Not paying your taxes is against the law,” warned Minister O'Connor. “The Canada Revenue Agency works hard to identify and correct non-compliance. This keeps the system fair for the honest Canadians who comply with the tax laws.”

In 2006-2007, Canada Revenue Agency (CRA) criminal investigations led to convictions in 245 cases of tax evasion, or 98% of the files prosecuted. Courts imposed fines totalling USD13.4m, and sentenced 26 offenders to more than 37 years in prison. Sentences for those who were ordered to serve jail time for tax-related offences ranged from 1 month to 3 years.

The CRA cautioned in a recent statement that: "Convictions for tax evasion, including not filing tax returns and making false declarations, can result in court imposed fines of up to twice the taxes evaded, plus jail time. In addition, taxpayers still have to pay the taxes owed and all other civil penalties and interest imposed by the CRA."

It added that: "The CRA's Voluntary Disclosures Program is available to taxpayers who want to correct their tax affairs before the CRA begins any audit action or investigation. If you make a full disclosure before we start any compliance action, you may only have to pay the taxes owing plus interest, but you will not have to pay any penalties nor face prosecution in the courts."