Canadians dodged paying feds up to $3B in taxes on foreign income: CRA

So far, the federal government has collected up to $14.6 billion less than it would have in 2014

Canadians dodged paying Ottawa somewhere between $800 million and $3 billion worth of taxes on foreign personal income in 2014, says a new federal estimate released Thursday.

The study by the Canada Revenue Agency says the missing funds represented between 0.6 per cent and 2.2 per cent of the total income tax revenue Ottawa collected that year from individuals.

So far, the federal government has collected up to $14.6 billion less than it would have in 2014, had all tax obligations been fully met — and that number is expected to grow as the agency’s research continues.

In previous reports, the agency has already released other estimates on the so-called tax gap — the difference between what is owed to the government and what was collected — for personal income tax and the federal portion of the GST and HST.

The agency’s next study will focus on domestic and international businesses, a report it says will provide CRA with its first estimate of Canada’s overall tax gap.

The latest numbers come as Ottawa invests more resources in analyzing and cracking down on tax evasion.

“Most Canadians pay their fair share of taxes,” National Revenue Minister Diane Lebouthillier said in a statement. “They expect their government to pursue people and businesses that try to avoid doing the same.”

The agency said Thursday that international audits it conducted between 2014-15 and 2016-17 uncovered close to $1 billion in income — and identified $284 million in additional taxes. In the process, it assessed 370 individuals, 200 corporations and a small number of trusts.

The CRA analysis also found that in 2014, Canadians earned $9 billion in foreign income and held a total of $429 billion worth of assets outside the country — with most of it reported in the United States and the United Kingdom.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Red Deer rebounding, hosting AUMA convention

Hundreds of municipal officials gather in Red Deer for the AUMA

Celebrate ‘Alberta Culture Days’ here in Red Deer

Lots of family-friendly activities set for this coming weekend

On the run with Melissa Ray

Red Deer runner talks about her intense running experiences

Red Deer RCMP arrest man after truck collides with pub

RCMP are investigating the incident as an impaired driving collision

CATena offers glimpse into Central Alberta Theatre’s new season

Visitors can also check out Memorial Centre refurbishments

Video: Flyers new mascot ‘Gritty’ a bearded, googly-eyed terror

The Philadelphia Flyers unveiled their new mascot Monday, and as one would expect of the team that gave us the “Broad Street Bullies,” he’s far from cuddly.

Veterans Affairs ordered to take second look before supporting vets’ relatives

Liberal government ordered officials to adopt a more critical eye

Ottawa working to iron out kinks in public alert system

The alerts are being credit with saving lives during last week’s tornadoes

Assault charge withdrawn vs. ex-Jays pitcher Roberto Osuna

Former Toronto player agrees to peace bond

UPDATED: Bill Cosby gets 3-10 years in prison for sexual assault

Judge also declared the disgraced comedian a ‘sexually violent predator’

U.S. worker charged after video shows him spitting on customer’s pizza

Jaylon Kerley of Detroit is charged with a felony count of food law violations

Robbery report at outlet mall turns out to be fake: police

Leduc RCMP respond to weapons complaint at premium outlet collection mall

Canada aiming for the moon, and beyond, with new space technology efforts

With an eye on future lunar exploration, Canada’s space agency is calling on companies to present their ideas for everything from moon-rover power systems to innovative mineral prospecting techniques.

New Brunswick Premier meets with lieutenant-governor as Tories, Liberals vie for power

New Brunswick Premier Brian Gallant said the only other leader he had spoken with since results came in was Green Leader David Coon.

Most Read