Canada Offers 15% Reward to Those Who Inform on Tax Dodgers
Canada is offering rewards to people who inform on tax dodgers.
The Canada Revenue Agency will pay 15 percent of any tax recovered in cases where the amount owing exceeds C$100,000 ($97,500), Finance Minister Jim Flaherty said today in his 2013 budget. The awards will be paid only on tax evasion involving property located or transferred outside Canada, or transactions conducted at least partly abroad.
“What we’re after is people hiding their money offshore,” Flaherty told reporters in Ottawa.
The government said it will raise C$4.4 billion in revenue over six years by closing tax loopholes and making the tax system fairer.
Changes include a plan to limit the distribution of domestic profits to foreign shareholders through tax-deductible interest payments. The government will also ensure that derivative transactions can’t be used to convert taxable income into capital gains taxed a lower rate.
Most of the changes will only affect individuals with annual incomes above C$500,000, David Mason, an Ottawa-based tax partner at Deloitte Canada, said in an interview.
“These are the most such measures I’ve seen in one budget,” said Mason. “They certainly seem to be getting serious.”
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