Canada Revenue Agency Launches Nationwide Enforcement Campaign

by Mike Godfrey, Tax-News.com, Washington

26 January 2009

The Canada Revenue Agency (CRA) has launched a web page dedicated to 'Project Trident,' a nationwide enforcement and awareness project that targets three types of illegal activity: identity theft, charities-related fraud, and tax preparer fraud.

"Project Trident is a hard-hitting CRA project that protects the tax base by prosecuting players in fraudulent tax schemes and reassessing tax returns," said Jean-Pierre Blackburn, Minister of National Revenue. "We have had good results in prosecuting the people who perpetrate these activities, and have reassessed a significant number of returns."

There are currently over 70 cases that make up Project Trident in various stages of investigation. In addition, there have already been 13 convictions, resulting in over CAD1.8m (USD1.5m) in fines and a total of 210 months in mandatory jail time.

"The three types of illegal activity are often used in combination," indicated Minister Blackburn. "Many of the cases involving tax preparer fraud also involve charities-related fraud or identity theft. For example, some unscrupulous tax preparers sell false receipts for charitable donations to their clients. Others commit identity theft by using personal information from legitimate clients to file fraudulent tax returns."

The CRA says that charities-related fraud can be committed on its own, without involving identity theft or unscrupulous tax preparers. For example, a charity could be set up to sell inflated tax receipts, but perform little to no charity work.

However, the agency added that it audits charities to put a stop to such fraudulent schemes and intends to prosecute tax preparers, directors of charities, and donors who are found to be involved.

Recommended