Report offshore tax cheating – How you could be rewarded

5. How you could be rewarded 

For a reward payment to be made, the information must result in the collection of more than $100,000 of additional federal tax (excluding penalties and interest), and all objection and appeal rights associated with the assessments must have expired. The CRA will not make any "upfront" payments.

The CRA will determine whether a payment will be made under the contract and what the amount of the payment will be.

If the information provided contributes to the collection of federal tax owing, the award amount will be between 5% and 15% of the federal tax collected that is related to international tax non-compliance (excluding interest and penalties). For information about the criteria that will be considered in determining the reward percentage, go to Payment criteria.

Provided all the payment conditions are met, once $100,000 of federal tax has been collected, the CRA will initiate the payment process. Partial payments may be made as additional funds relating to the informant's submission are collected.

The CRA closely monitors files as they move through the audit, and or investigation, appeals and collections stages. A recommendation report with the proposed award payment amount is prepared for the internal committee's approval. There is a payment process in place to make sure that reward payments to eligible informants are processed in a timely, accurate, and equitable manner, while protecting the identity of informants.

All rewards will be treated as taxable income to the informant.

Payment criteria

If the information you provide about international tax non-compliance helps the CRA assess federal taxes owing, we will reward you between 5% and 15% of the additional federal tax collected, excluding interest and penalties. The reward levels are 5%, 7.5%, 10%, 12.5%, and 15%.

The reward percentage is based on various factors, including those below.

Various factors on which the reward percentage is based
Quality of information

Mediocre

  • Difficult to use
  • Contains many errors
  • Incomplete; contains few details
  • Not clear and organized

Good

  • Easy to use
  • May contain minor errors, but not on major issues
  • Complete on most major issues
  • Clear and fairly well organized

Excellent

  • Very easy to use
  • Accurate
  • Complete and detailed
  • Clear and well organized
Relevance of information

Somewhat relevant

Mostly relevant

Relevant

Cooperation of informant

Minimal

  • Provides basic explanations when asked
  • Provides minimal background information or appropriate context
  • Actions jeopardized or complicated CRA review

Adequate

  • Provides useful explanations when asked
  • Provides useful background information and context where necessary

Exceptional

  • Provides clear and detailed explanations when asked
  • Provides detailed background information that enhances the CRA's understanding of the tax issue
Value of information to CRA

Low

  • Does not reduce the time needed for CRA compliance action
  • Mostly from public sources or would have been easy to obtain
  • Even without it, the CRA would likely have audited this issue

Medium

  • Reduces the time needed for CRA compliance action
  • Would have been difficult to obtain
  • Even without it, the CRA may have audited this issue

High

  • Greatly reduces the time needed for CRA compliance action
  • Would have been very difficult to obtain
  • Without it, the CRA would have been unable or unlikely to audit this issue

The CRA may also consider factors such as timeliness, the informant's role in the tax non-compliance, and whether assets were identified that helped with the collection of taxes.

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