As per Section 238 of the Income Tax Act in Canada, if a person does not complete and file his or her annual tax return, that person will be found guilty of an offense of tax evasion in Canada and can look at a fine ranging from thousand dollars to even twenty five thousand dollars. In addition to this penalty, a tax court judge may also sentence the offender to a year of incarceration.
Apart from tax evasion in Canada, an individual could be penalized for an offense if that person has misled the CRA with intentional false statements while evading taxes. The specific fines for this type of tax evasion?is 50% of the total amount of taxes that have been evaded. There could also be a jail sentence for up to two years.
When you face charges of?tax evasion in Canada from the CRA, it is imperative that you consult professional tax representatives to help you in preparing your stand. Many tax firms offer free consultations with a tax consultant to self employed individuals and small business owners. The experienced and knowledgeable consultants will help people who are guilty of tax evasion Canada to familiarize them with the Canadian Income Tax Act.
Every person who has assented to making false statements in a tax return or lied concerning the amounts that are taxable is guilty of tax evasion.?It is better not to evade taxes in Canada as it is a very serious crime. Even if a person is behind in filing tax returns, it is better for that individual to come clean and resolve the tax issues.
Simply put, tax evasion in Canada is when you are not filing your tax returns regularly and not declaring your income in an attempt to hide it; you may also be claiming certain expenses or tax credits which you are not eligible or entitled to claim. The CRA takes a serious stand on all tax evaders in Canada and there is no sympathy shown to the offenders. It is their main function to collect the taxes and the interest and penalties that accrue with the unpaid taxes.
A few days back, the Financial Post reported that the CRA is aiming to cut auditors while acknowledging extreme difficulty in tracking and pulling together billions of dollars?in the form of unreported income. Certain organisational inefficiency has been identified and planned cuts have been briefed concerning the number of tax auditors despite the assurance by the government in recent months that the tax enforcement and collection would not be affected by these cuts.
It is generally a case that criminal charges for tax evasion in Canada go together with a civil assessment or a reassessment of an individual?s taxes. It is a clear fact that the person has earned more income than he or she has attempted to declare. This very failure on the part of the individual is the actual basis of the charge of tax evasion Canada. As a result of this, penalties concerning gross negligence are imposed on that individual.