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 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:

Note that this is a non-exhaustive list. Other situations may preclude eligibility.

Examples of submissions

Nicole reports on her ex-spouse
Nicole reports on her ex-spouse

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.

Simon reports clients hiding money in a tax haven
Simon reports clients hiding money in a tax haven

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 report offshore tax schemes
David and Joanne report offshore tax schemes

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 613-960-4265 (collect calls will be accepted), weekdays from 8:00 a.m. to 4:00 p.m., Eastern Standard Time, except on public holidays. The call will be on a no-names basis.

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