Report offshore tax cheating – Eligibility
2. Eligibility
No matter where you are in the world, you may qualify for the CRA's reward program if the information you provide includes sufficient, specific and credible details that lead to additional taxes being assessed and collected. This information must allow the CRA to determine that:
- the tax non-compliance being reported is international
- the federal tax evaded or avoided, excluding interest and penalties, is greater than $100,000
The information you provide cannot already be known to the CRA or be speculative.
Exclusions
You may not be eligible for a reward under the following situations:
- you have been convicted of tax evasion concerning the situation of non-compliance you are reporting;
- you are a CRA employee;
- you are or were a federal, provincial, or municipal employee, official, or representative, and acquired the information in the course of your employment duties;
- you are or were a contractor and acquired the information in the course of your duties for a federal, provincial or municipal government;
- you have been convicted of an offence listed under section 750 of the Criminal Code;
- you are the taxpayer involved in the non-compliance (if this is the case, you may want to consider making a voluntary disclosure);
- you are currently an authorized representative of the taxpayer involved;
- you are legally required to disclose the information to the CRA;
- you received the information from an ineligible individual; or
- you are providing the information anonymously (anonymous submissions will be accepted however no payment will be made).
Note that this is a non-exhaustive list. Other situations may preclude eligibility.
Examples of submissions
Nicole submitted information to the OTIP that proved her ex-spouse failed to report his foreign assets. With her information, the CRA audited her ex-spouse and expects to collect taxes, interest and penalties. And Nicole is expecting a reward… read Nicole’s story.
As a financial planner in an offshore bank, Simon had privileged knowledge of his clients’ affairs. He provided the CRA with sufficient information on alleged offshore tax cheating of over 50 Canadians… Read Simon’s story.
David and Joanne provided detailed information on two international tax scheme promoters, which led to the collection of millions of dollars in unreported taxes… Read David and Joanne’s story.
What is being reported
Information received from informants about international tax non-compliance ranges from failure to report foreign income to the use of more complex tax structures by individuals or corporations to avoid paying the taxes they owe. The CRA has also received lists of bank accounts held by Canadians in foreign countries. Here are a few examples of situations reported to the program:
Intergenerational wealth
- Canadian taxpayer does not report inherited assets located outside of Canada, or the income earned on the assets.
New residents
- Canadian taxpayer does not report offshore assets obtained before becoming a Canadian resident, or the income earned on the assets.
Lifestyle
Canadian taxpayer's income that is reported to the CRA is low and not consistent with their lifestyle. They live in a high-value home, but declare very little income.
Substantial assets are held through offshore corporations, which provide cash flow to the taxpayer.
Worldwide income
- Canadian taxpayer owns properties in a foreign country from which rental income is earned, and does not report that income to the CRA.
- Canadian taxpayer has offshore assets, but does not report income earned on the assets to the CRA.
Corporations
- A Canadian company overstates its expenses by asking a foreign supplier to inflate invoices for services rendered. The supplier takes a small fee for this service and transfers the difference to an offshore bank account for the Canadian company.
- A Canadian company offers customers considerable discounts if a part of the invoice is paid in cash. The unreported business income is then moved offshore.
Informants are providing information on a voluntary basis to the CRA and are not acting on its behalf. Informants are not agents or employees of the CRA and should not represent themselves as an agent or representative of the CRA.
If you are unsure whether you are eligible for a reward, or you want to discuss information you have, call toll-free 1-855-345-9042 (North America) or 613-221-3135 (collect calls will be accepted), weekdays from 8:15 a.m. to 4:45 p.m., Eastern Standard Time, except on public holidays. The call will be on a no-names basis.
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