Canada has on of the highest voluntary tax compliance rates in the world, but there’s still a small minority choosing not to pay what they owe.
The Canada Revenue Agency (CRA) is committed to ensuring that people and business pay their fair taxes, and is also making it more difficult to avoid paying taxes. The CRA’s compliance activities are vital to protect the integrity of our self-assessment tax system.
When an individual or business intentionally does’n comply with Canada’s tax laws with action such as falsifying records and claims, hiding income, or inflate expenses, it’s tax evasion. Aggressive tax avoidance, on the other hand. occurs when actions are taken to get around the intent of the law.
Tax evasion and aggressive tax avoidance deprive our country of important revenues that help fund essential programs and services such as health care, childcare, education and infrastructure.
New and better approaches are helping the CRA see more data and find more of those not paying their fare share.