From a current CRA presentation: “OTIP allows the CRA to make financial rewards to individuals who provide specific and credible details about major international tax non-compliance that lead to the assessment and collection of additional federal taxes.”
I had not realized until recently that the Canada Revenue Agency is offering, or at least thinking about offering, money for you to bring trouble to people you think are hiding international income.
If you are doing business or investing offshore, there are some factors to keep in mind:
1. Banks report outgoing international wires in excess of $10,000.
2. 37 countries collaborate in an arrangement called JITSIC, exchanging information on international financial transactions.
Why do people want to invest outside of Canada? Maybe because they want to reduce exposure to confiscation. As the country is faced with increasing pressure to satisfy voters’ perceived entitlements, the risk of unjust seizure of assets increases. Income tax rates are now very high relative to many other nations, so why not shop for better rates? The Trudeau government, rather than keeping Canada tax competitive with other jurisdictions, has elected to build the fence higher so that the milk cows do not jump over.
People in business can easily be paying 50% of profits on income taxes. Of course, if they lose money, their silent partner doesn’t kick in half the loss. It’s a pay-up or be punished regime. Much like a Mafia protection racket: “Pay, and we’ll protect you from us.” I am not counselling breaking the law, but there is nothing wrong with trying to get the law changed or with conducting your affairs to legally reduce taxes.
