The new strategy of Canada Revenue Agency to crack down on tax havens by reviewing every single electronic funds transfer (EFT) of more than $10,000 has delivered 750 audits and 20 criminal investigations.
Since January 2015, the Government of Canada has required financial institutions to report international EFTs of $10,000 or more to the CRA. The agency targets four different foreign jurisdictions every year, currently finalizing the reviews concerning Isle of Man and the Channel Islands. Two more reviews of undisclosed jurisdictions are under way, to be completed by the end of March, 2017.
Within the Isle of Man and the Channel Islands reviews, the CRA has identified and started to audit 166 high-risk taxpayers. The agency has also sent more than 1,000 “nudge” letters to taxpayers with dealings on these islands to remind them of their reporting obligations.
During the period 2017-2018, the CRA is planning to review about 100,000 EFTs in next four new jurisdictions, the names of which are not disclosed. In its budget 2016, the CRA informed that it has now an increased ability to more fully examine potential tax avoidance across jurisdictions of concern.
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