Over 300 Canada Revenue Agency investigators and other CRA officers have been executing search warrants across western Canada, it emerged last week.
The searches, which began earlier this month, were conducted at over 50 separate locations
as a result of alleged involvement in fraud related to fictitious Registered
Retirement Savings Plans (RRSPs), investment scams, and other tax evasion schemes.
RRSP and investment scams are popping up across Canada and the CRA has announced that it is making
its presence known by auditing and investigating the promoters who back these
schemes.
"The CRA is taking substantive action against promoters and others who
lure Canadians into tax evasion schemes," explained CRA Commissioner William
V. Baker.
Many Canadians have lost their entire retirement savings by participating in
schemes such as the ones currently being investigated. Additionally, if the scam involves
RRSP withdrawals, the victims have to pay tax on the withdrawals when their
income tax returns are reassessed by the CRA.
The CRA is urging Canadians to use caution and check the legitimacy of RRSP
funds and investment opportunities before making any contributions.
"Canadians should know that they are responsible for taxes and interest
owed on taxes evaded, even if a promoter indicates otherwise," added Baker.
The CRA's Voluntary Disclosures Program gives individuals the chance to make
a full disclosure about any omissions or mistakes they may have made, but the taxpayer must approach the Agency before any review, audit or investigation is started.
Individuals may then only have to pay the taxes owing plus interest, but not penalties, and may avoid a criminal investigation and prosecution.
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