Tax Evasion in Canada: What It Is & What You Should Know
Canada Revenue Agency (CRA) auditors take the collection of taxes very seriously. if you are caught evading taxes, you could be penalized or prosecuted for tax evasion. Farber Tax can help fight the CRA on your behalf. Contact us to fix your Tax Evasion issue.
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What is Tax Evasion Canada?
Tax evasion is a very serious situation. This term refers to a situation where an individual or business does not file tax returns as they should, when income is not accurately or completely declared, or when incorrect or fraudulent expenses are claimed on a tax return. The potential penalties for tax evasion Canada can be very severe. If you are found guilty, you could face a large fine and even potential criminal charges that could result in jail time.
Since tax evasion Canada is a very serious charge, it is important that you file your taxes correctly. If you do not, the Canada Revenue Agency (CRA) could potentially charge you with a crime, which could mean a criminal record. If you have been accused of tax evasion, it is critical that you handle the situation correctly. Otherwise, you could find yourself in serious trouble.
Common Tax Evasion Situations
There are a number of scenarios that the CRA could consider to be tax evasion. A common issue is an undeclared income. If you do not declare all of your income, the CRA will likely consider this to be tax evasion. The agency has many tools at its disposal to determine if an individual correctly declared all income. It can match the information you provided with details it received from other organizations (such as an employer). If it finds that an organization claims to have paid you money but you did not declare this income, you may be audited, and the agency may pursue tax evasion charges against you.
Another situation that the CRA could consider to be tax evasion is if you do not file a tax return that you are required to file.
However, it’s important to know that while tax evasion Canada is a crime, owning tax debt is not. If you have filed your taxes correctly, but owe money, the agency will not file tax evasion charges against you. It will be more interesting in getting the money that is owed to it.
Avoiding Tax Evasion Charges
If you have incorrectly filed your taxes in prior years, if you have not declared income or expenses as you should have, or if you did not file returns that should have been filed, there is an option that may be applicable to you. The Voluntary Disclosure Program (VDP) is designed to give a second chance to get your returns right. If you file a VDP application and are accepted, you could be eligible for relief from prosecution and potentially from penalties and interest as well.
However, to apply for this program, you will need to provide the CRA will all missing or incorrect information before the agency contacts you regarding your taxes. This means that you will have to give the CRA with information that it does not already have. This can be a potentially risky situation. If you give the CRA new information about your finances but then are not accepted into the program, you could be in potential trouble. Working with an experienced professional can increase your chances of a successful application. If you are considering applying to the Voluntary Disclosure Program to avoid a potential tax evasion situation, contact us today.
Handling CRA Tax Evasion Charges
If the CRA has contacted you regarding unfiled returns, undeclared income, or other situations that could potentially result in tax evasion Canada charges, then you should speak with a professional right away. If this situation is not handled properly, you could find yourself in serious trouble. Contact our team today. Our team of ex-CRA professionals, working in affiliation with tax lawyers from Farber Tax Law can communicate with the CRA on your behalf, negotiate with the agency, and represent you in audits or in court as needed.
Farber Tax Solutions Helps You at Every Step of the Way including:
- 1| Organizing: We analyze all documents and communication, to fight the CRA on your behalf
- 2| Audits: We assist you with audits and ensure proper conduct by tax authorities
- 3| Appeals: We can prepare a Notice of Objection, clarifying your standing with the CRA
- 4| Litigation: We represent you at all levels of court