CRA takes action to enforce tax laws

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The following is now available on the CRA Web site:

Ottawa, Ontario, January 8, 2008… You cannot avoid paying the taxes you owe by not filing a tax return, or by not reporting all of your income.

The Canada Revenue Agency (CRA) uses a variety of tools to identify non-compliance and take action to address mistakes or tax cheating.

The CRA is committed to promoting the integrity of the tax system through a number of compliance activities. In 2006-2007, the CRA:

* 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.

More information on the compliance activities the CRA undertook in the past year can be found in the 2006-2007 Annual Report to Parliament, available at The Web site also contains information on CRA programs such as the Voluntary Disclosures Program, which allows taxpayers to come forward and correct their tax affairs before the CRA begins any audit action or investigation.

SOURCE: Canada Newsroom


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