Example of an OTIP submission: David and Joanne report offshore tax schemes - Canada.ca

David and Joanne worked and lived abroad for six months. During this time, they did business with two Canadians who turned out to be involved in a tax scheme to hide offshore assets from the Canada Revenue Agency (CRA).

Upset by the unfairness of these schemes, David and Joanne sent information to the Offshore Tax Informant Program (OTIP). They provided information about rental properties and investments owned by the two Canadians, as well as supporting documents such as property records and bank statements. They also provided tax returns that the two Canadians had filed in the other country.

Because the alleged activities were ongoing, and David and Joanne provided supporting documents, the CRA was able to identify the Canadian individuals and prove they had unreported offshore bank accounts, corporations and other assets. This information assisted the CRA auditor in issuing a more complete assessment of their unreported income.

These CRA audits resulted in a reassessment of millions of dollars, as well as hundreds of thousands of dollars in penalties and interest. When the CRA collects on that debt, David and Joanne will receive a reward in exchange for their valuable information.

If you have information similar to David and Joanne’s or other information about major international tax non-compliance, you could receive a financial reward. To find out if you are eligible, go to Report offshore tax cheating – Eligibility.

Disclaimer: This example is based on a fictitious submission.

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