On February 14, 2018, the Canada Revenue Agency (CRA) announced that it had executed three search warrants in respect of a number of offshore tax evasion criminal investigation related to the data leak from the Panamanian law firm and corporate service provider Mossack Fonseca.
The CRA emphasized that there are more tax evasion investigations to come while also setting out the serious consequences of tax evasion in Canada. The news release states:
“Wilfully failing to follow tax laws could result in serious consequences, including reassessments, the imposition of civil penalties and criminal tax investigations and prosecutions resulting in the imposition of court fines, jail time and a criminal record. Under the income tax and excise tax laws, persons convicted of tax evasion can face fines ranging from 50% to 200% of the evaded taxes and up to five years imprisonment.
If convicted of fraud under Section 380 of the Criminal Code, an individual can face up to 14 years in jail.”
It is important to emphasize that the Income Tax Act, Excise Tax Act (GST/HST) and the Criminal Code all contain offenses that carry punishment that includes imprisonment. These provisions apply to all matters under the respective act and not just to offshore accounts.
Presumably by no coincidence, the busts took place on Valentines Day.
See the Tax Evasion release here.
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