CRA usually chooses to begin a criminal investigation based on information they have received from a number of sources, including:

• referrals from within the CRA, including from previous audits;
• tips from individuals provided to the CRA informant leads program;
• information from various law enforcement agencies; and
• information from public sources such as media

Types of cases investigated

The CRA is most likely to investigate cases that involve the following:

• significant cases of tax evasion with international aspects
• promoters of organized, sophisticated tax schemes intended to defraud the government
• joint investigations with other enforcement agencies (e.g. cases of tax evasion involving money laundering and terrorist financing)
• large cases involving income tax and/or GST/HST tax evasion

Investigations involve gathering and analyzing evidence, carrying out search warrants, and conducting interviews with taxpayers and witnesses. A report is then prepared and sent to the Public Prosecution Service of Canada to review the evidence and support the decision of CRA to lay criminal charges. These types of cases are complex and usually take years to complete.

If convicted of tax evasion, individuals must pay the taxes owed, plus interest, but also face various penalties, including court fines and jail time.

Get help

For advice and assistance with tax planning, a CRA tax dispute, or other tax issues, contact KPK Law.

Personal and business tax issues are vast and complicated. To get help, ask a lawyer now.

								
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