Tax cheats beware: CRA launches snitch line

CRA has a new way to catch up with Canadians cheating on their taxes.

The government has launched a tips hotline to catch those hiding money in offshore accounts.

On cases worth $100,000 or more, a tipster would get a cut of any money the CRA recovers based on her information. But if she’s convicted as part of the tax scheme herself, she won’t be compensated.

Read: CRA has denied every gifting tax shelter it’s audited

The tipster would also have to wait until the CRA has collected all taxes owed and the case has gone through all avenues of appeal.

The government has also recently tightened rules surrounding foreign income reporting. It also wants to make reporting international electronic money transfers of more than $10,000 mandatory.

Read: How the CRA treats snowbirds

The government will spend $15 million over five years to fund the electronic funds transfer program, and another $15 million during that time on compliance and auditing activity.

The government promised a tips hotline in the 2013 budget. With its launch, four of the five tax measures in the budget have been implemented, and the fifth will come into effect in 2015.

Closing tax loopholes and catching tax avoiders have been increasingly important to the government as it works to eliminate the deficit in time for the 2015 federal election.

The hotline is open at 1-855-345-9042

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.