I believe I can help you with you tariff troubles
| ||
| https://www.cbc.ca/news/ | ||
This business owner brought most of her manufacturing home from China — and feels punished for it
Children's furniture company is facing surprise tariffs after bringing manufacturing to Canada
A Canadian company that manufactures children's toy couches finds itself facing a stiff bill for import tariffs after bringing production home to this country.
While Barumba Play is no longer importing a majority of its product, a single component of the couches has been reclassified by the Canada Border Services Agency and is no longer tariff-free.
The company's flagship product is a couch for children made of pieces that can be easily taken apart and reassembled for play. Sara Feldstein founded the company in Markham, Ont., in 2021 and initially produced the couches entirely in China.
As the couches were classified as a children's toy, Feldstein told CBC News they were not subject to tariffs and were brought into Canada without import fees. Tariffs can be used by the Canadian government as a form of taxation on imports to protect Canadian economic development.
Trouble started for her in 2023, when Feldstein opted to move production of the couches to Canada from China.
"I on-shored my manufacturing to Canada from China and have been penalized for it," she said.
Business
owner Sara Feldstein sits on a Barumba Play couch. 'I on-shored my
manufacturing to Canada from China and have been penalized for it,' she
said. (Anis Heydari/CBC)
Feldstein was able to manufacture every part of the couch in Canada except for cloth slipcovers, which she had to keep producing in China.
She received a letter from the Canada Border Services Agency in the summer of 2023 indicating it felt classifying the slipcovers as part of a toy was incorrect. This contradicted what Feldstein was told to expect from business advisors and industry experts that she turned to for advice before opting to transfer manufacturing most of her product to Canada.
Instead, Feldstein says the slipcovers have been lumped in with textiles such as carpets, bed linens and table linens — and now she's expected to pay 18 per cent duty on imports.
These
are some of the play couch slip covers that the Canada Border Services
Agency has classified as textiles, rather than a component part of a
toy. (Submitted by Sara Feldstein)
The CBSA declined an interview request from CBC News. After this article was published, it issued a statement that the Customs Act doesn't allow it to speak about individual cases, but explained that goods are assessed for tariffs based on how they are "presented at the border," and that changes to what is being imported can result in a change to tariff classifications.
The CBSA also said if someone importing goods disagrees with a tariff decision, they can appeal, but only after they've paid all amounts owed, plus interest.
According to Feldstein, her business now owes at least $47,000 in retroactive tariffs, and she expects costs could escalate up to $70,000 while she waits for the appeals process to play out.
WATCH | How a classification change led to surprise tariffs for this Canadian company:
After
bringing home her manufacturing from China to Canada, Barumba Play
founder Sara Feldstein received a letter from the Canada Border Services
Agency saying they had reclassified her children's toy couches from the
category of toys to textiles, resulting in an 18 per cent duty that
they're applying retroactively to the past several years of operation.
She can appeal but would still need to front the full amount of money
owed first.
Businesses must pay, even during appeals
It's a cost she's not sure her business can bear, because she must pay the tariffs now even while she tries to appeal the decision.
That appeal process could take close to a year, according to the CBSA's current processing times.
"It would make me want to tell others, don't bother bringing your business back to Canada. Do it overseas. It's safer that way," she said.
It's not unusual for businesses to be caught in the complicated web of tariffs, according to lawyer David Rotfleisch of TaxPage.com, a law firm specializing in tax and business.
Tax lawyer David Rotfleisch says businesses have to pay tariffs as assessed before appeals are heard. (Gary Morton/CBC)
He confirmed that businesses such as Feldstein's need to pay assessed tariffs even while mounting a legal challenge because collection is not paused or halted when an appeal is launched.
"Tariff classifications are complex and make income tax look relatively simple," Rotfleisch said.
"Wrong assessments affect a lot of businesses because they can't pay it, and by the time the appeal process runs its course, it's going to take time and [businesses] can't manage it. So they have to literally shut their doors."
Suspending payments may not be solution
But eliminating the requirement to pay, even before appeals are exhausted, may not be the right solution, according to Jenifer Bartman, a business advisor based in Winnipeg.
"You could have companies not paying attention to the rules, saying, 'We'll go ahead and do this, and if it goes wrong, we're not going to be out of pocket any time soon,'" she said.
Business advisor Jenifer Bartman says companies must seek out advice before changing supply chains across borders. (Anis Heydari/CBC)
Bartman pointed out that importing products to Canada, whether partial or fully manufactured, requires a lot of preparation and advice.
"It's really important for business leaders, especially if they're venturing into a new aspect of their supply chain … to understand what the rules are in advance because they can save themselves a lot of time and trouble down the line."
Business owner says she did her research
For her part, business owner Feldstein said she did consult with experts prior to repatriating manufacturing of her couches to Canada. The decision by CBSA to reclassify surprised her.
Feldstein maintains the slipcovers currently being classified as textiles by CBSA should still be considered just a part of the couches she sells as a children's toy, and not a separate linen that could be used on its own.
If the slipcovers are a part of the toy couch, they would not have the tens of thousands of dollars in tariffs assessed.
According to the CBSA's website, to be considered a "part," the item must meet criteria including that it has no alternative function, be marketed and shipped along with other parts of the product, needed for "safe and prudent use" of the item, and be "committed" to use with the unit.
Barumba Play's founder isn't sure what comes next, but until the problem is resolved she's holding off on growing her business.
"I'm very hesitant to spend money on other items right now when this is in limbo," said Feldstein.
ABOUT THE AUTHOR
---------- Original message ---------
From: Barumba Play Team <hello@barumbaplay.com>
Date: Tue, Mar 19, 2024 at 4:48 PM
Subject: Re: I believe I can help you with you tariff troubles
To: David Amos <david.raymond.amos333@gmail.com>
From: Barumba Play Team <hello@barumbaplay.com>
Date: Tue, Mar 19, 2024 at 4:48 PM
Subject: Re: I believe I can help you with you tariff troubles
To: David Amos <david.raymond.amos333@gmail.com>
I'm all ears.
Fwd: Oh My The CRA in the news again Deja Vu anyone???
---------- Forwarded message ---------
From: David Amos <david.raymond.amos333@gmail.com>
Date: Mon, May 22, 2023 at 3:54 PM
Subject: Oh My The CRA in the news again Deja Vu anyone???
To: <GoPublic@cbc.ca>, Nathalie.G.Drouin <Nathalie.G.Drouin@pco-bcp.gc.ca>, <dmilot@milotlaw.ca>, <contactus@taxationlawyers.ca>, <acampbell@legacylawyers.ca>, <jdp@tdslaw.com>, Nathalie.Drouin <Nathalie.Drouin@justice.gc.ca>, <Diane.Lebouthillier@parl.gc.ca>, erin.otoole <erin.otoole@parl.gc.ca>, pm <pm@pm.gc.ca>, premier <premier@ontario.ca>, Newsroom <Newsroom@globeandmail.com>, jagmeet.singh <jagmeet.singh@parl.gc.ca>, Bill.Blair <Bill.Blair@parl.gc.ca>, mcu <mcu@justice.gc.ca>, <nathalie.sturgeon@globalnews.ca>, Jason.Proctor <Jason.Proctor@cbc.ca>, John.Williamson <John.Williamson@parl.gc.ca>, Ross.Wetmore <Ross.Wetmore@gnb.ca>, blaine.higgs <blaine.higgs@gnb.ca>, rob.moore <rob.moore@parl.gc.ca>, Robert. Jones <Robert.Jones@cbc.ca>, steve.murphy <steve.murphy@ctv.ca>, Melanie.Joly <Melanie.Joly@parl.gc.ca>, Mark.Blakely <Mark.Blakely@rcmp-grc.gc.ca>, martin.gaudet <martin.gaudet@fredericton.ca>, Mitton, Megan (LEG) <megan.mitton@gnb.ca>, michael.macdonald <michael.macdonald@thecanadianpress.com>, <sheilagunnreid@gmail.com>, silas.brown <silas.brown@globalnews.ca>, <christian.lorenz@international.gc.ca>
Cc: Mitchell, Kathleen <Kathleen.Mitchell@nbeub.ca>, Michael.Duheme <Michael.Duheme@rcmp-grc.gc.ca>, <rkota080@uottawa.ca>, <Info@wehackpurple.com>, <Philip.Gardner@iansresearch.com>
From: David Amos <david.raymond.amos333@gmail.com>
Date: Mon, May 22, 2023 at 3:54 PM
Subject: Oh My The CRA in the news again Deja Vu anyone???
To: <GoPublic@cbc.ca>, Nathalie.G.Drouin <Nathalie.G.Drouin@pco-bcp.gc.ca>, <dmilot@milotlaw.ca>, <contactus@taxationlawyers.ca>, <acampbell@legacylawyers.ca>, <jdp@tdslaw.com>, Nathalie.Drouin <Nathalie.Drouin@justice.gc.ca>, <Diane.Lebouthillier@parl.gc.ca>, erin.otoole <erin.otoole@parl.gc.ca>, pm <pm@pm.gc.ca>, premier <premier@ontario.ca>, Newsroom <Newsroom@globeandmail.com>, jagmeet.singh <jagmeet.singh@parl.gc.ca>, Bill.Blair <Bill.Blair@parl.gc.ca>, mcu <mcu@justice.gc.ca>, <nathalie.sturgeon@globalnews.ca>, Jason.Proctor <Jason.Proctor@cbc.ca>, John.Williamson <John.Williamson@parl.gc.ca>, Ross.Wetmore <Ross.Wetmore@gnb.ca>, blaine.higgs <blaine.higgs@gnb.ca>, rob.moore <rob.moore@parl.gc.ca>, Robert. Jones <Robert.Jones@cbc.ca>, steve.murphy <steve.murphy@ctv.ca>, Melanie.Joly <Melanie.Joly@parl.gc.ca>, Mark.Blakely <Mark.Blakely@rcmp-grc.gc.ca>, martin.gaudet <martin.gaudet@fredericton.ca>, Mitton, Megan (LEG) <megan.mitton@gnb.ca>, michael.macdonald <michael.macdonald@thecanadianpress.com>, <sheilagunnreid@gmail.com>, silas.brown <silas.brown@globalnews.ca>, <christian.lorenz@international.gc.ca>
Cc: Mitchell, Kathleen <Kathleen.Mitchell@nbeub.ca>, Michael.Duheme <Michael.Duheme@rcmp-grc.gc.ca>, <rkota080@uottawa.ca>, <Info@wehackpurple.com>, <Philip.Gardner@iansresearch.com>
https://davidraymondamos3.blogspot.com/2023/05/cra-demands-payment-on-scammed-federal.html
Monday, 22 May 2023
CRA demands payment on scammed federal benefits — from the victim
whose account was hacked
https://www.cbc.ca/news/canada/toronto/cra-cyber-attack-victim-fraud-1.6845430
CRA demands payment on scammed federal benefits — from the victim
whose account was hacked
Tax agency's website still vulnerable, 3 years after major security
breach, expert says
Rosa Marchitelli, Jenn Blair · CBC News · Posted: May 22, 2023 5:00 AM ADT
A man with a full beard wearing a black sweater holds a mobile phone
to his ear while looking off camera. Justice Mounsey of Toronto says
he's spent countless hours making calls and sending emails trying to
prove he's not the one making benefit claims or applying for credit —
after his financial information was stolen from the Canada Revenue
Agency's website. (Craig Chivers/CBC)
Justice Mounsey is living a financial nightmare, battling a constant
onslaught of identity thieves applying for credit cards, loans and
more under his name after hackers got hold of his personal information
from a government website three years ago.
And as if that's not enough, that same department is forcing the
Toronto man to clear his name over and over again.
The personal and financial information of thousands of taxpayers,
including their bank account and social insurance numbers ended up in
the wrong hands after the Canada Revenue Agency (CRA) and other
government service websites were hacked in the spring or summer of
2020.
Since then, fraudsters have tried to access credit and benefits under
Mounsey's name at least 18 times.
He's has had to deal with fraudulent credit card and bank account
applications, auto-payments to a utility company — and four EI claims
plus a CERB claim totalling about $40,000.
Got a story you want investigated? Contact Rosa and the Go Public team
The most frustrating part, he says, is dealing with the government's
demands that he pay thousands of dollars in taxes and interest,
related to those EI claims.
"They just keep asking for more and more money," Mounsey told Go
Public. "I'm the victim here. This is their security protocol that
failed, but I'm left to pick up all the pieces."
WATCH | Fighting to clear his name:
Toronto hacking victim ‘living a financial nightmare’
Duration 2:25
Three years after his CRA account was hacked, a Toronto man says he's
been forced to clear his own record, despite government promises to
help people in his position. He says fraudsters used his social
insurance number to get federal benefits, and now he’s on the hook for
thousands of dollars.
Mounsey is a part of a class-action lawsuit, certified last year in
federal court, that claims "operational failures" by the government
allowed hackers to access the information.
The government has not commented on the lawsuit, but has said the
cyberattack relied on "credential stuffing"— using stolen IDs and
passwords to access other websites and applications — and urged
Canadians to avoid reusing passwords. Some saw this as an attempt to
blame the leak on its victims.
According to court documents, hackers successfully logged in to at
least 48,110 CRA accounts. They then changed the direct deposit
banking information on 12,700 taxpayer accounts and fraudulently
applied for CERB benefits. Mounsey is one of them.
"At the end of the day, you have a Canadian, who's been victimized by
a cyberattack," said Ritesh Kotak, a security analyst and a technology
lawyer.
"The fact that an individual has to go, and go through so many
different hoops, deal with so many different agencies, and spend
hundreds of hours to address this situation is just inappropriate."
A sign saying 'Canada Revenue Agency' is seen outside a large stone
building. The CRA eventually acknowledged Mounsey's information had
been stolen, but nonetheless is demanding he pay taxes and interest
related to bogus claims made by fraudsters. (Chris Wattie/Reuters)
Mounsey first learned about the cyberattack in the summer of 2020,
through his wife's friend, who had discovered her CRA account had been
hacked.
When he logged in, he noticed his direct deposit information had been
changed. He signed up for a credit monitoring and fraud alert service
and contacted Equifax, TransUnion, the CRA, and the Anti-Fraud Centre,
asking for a flag to be put on his accounts.
CRA threatens legal action
It took two and half years before the CRA officially notified Mounsey
he was possibly a victim of the hack. By that time, he had been
dealing with a flood of fraudulent activity.
A CRA letter dated Oct. 4, 2022, said "an unauthorized individual" had
possibly accessed his account and changed his direct deposit
information on May 27, 2020. It offered a five-year subscription to
TransUnion's online credit alert system. Mounsey says he tried to sign
up, but the link didn't work, plus he'd set up a credit fraud
detection service himself years earlier.
"When I received that letter [I thought] OK, this is an admission that
yes, my account is compromised. So my thought process then is like,
'finally someone understands and I'm not going to be receiving notice
that they're looking for money anymore. They want to support me,'" he
said.
But the letter didn't say anything about not coming after Mounsey for
money and, under the terms and conditions on its website, the CRA says
it's not responsible for damage to taxpayers related to "data security
violations."
A balding man wearing a grey blazer over a white collared shirt looks
directly at the camera with a slight smile on his face. There are two
computer monitors in soft focus in the background. Lawyer and
cybersecurity analyst Ritesh Kotak says the government failed to offer
the right supports to Canadians caught up in the CRA's website hack
(Keith Whelan/CBC)
Mounsey's optimism that he'd finally get help from the government
quickly faded. In March 2023, the CRA sent another letter, demanding
he pay $6,018.97 or face possible legal action for taxes and interest
charges related to those fraudulent EI claims.
"I was very upset… I think I've received maybe four different notices
stating, 'Hey, you've got to give us money… and if you don't pay us in
the next few months, we're going to start garnishing your wages.'
"The same organization was talking to me out of two sides in their
mouth." Mounsey said.
For months he's been trying to clear that up — bouncing between the
CRA and Service Canada, working to get the paperwork one department
wants to the other.
But instead of working with him, Mounsey says the departments are
making things harder. At one point, he says CRA closed his file
because Service Canada took too long to cancel a tax slip.
He had to start the process over again. All this despite Service
Canada having acknowledged, in a letter sent late April, that
fraudsters may have used Mounsey's personal information to submit
those EI applications.
A man wearing a dark sweater sits at a table with a large pile of
papers in front of him. Behind him is the kitchen. He is not smiling.
Mounsey shows the mountain of paperwork he's accumulated over the past
three years dealing with fraudsters and the government. (Craig
Chivers/CBC)
Go Public asked both departments why they didn't work together to
resolve Mounsey's issues. Service Canada responded, saying it and CRA
are "two separate entities with different capabilities and
responsibilities."
"Service Canada works closely with claimants to resolve these issues
related to fraudulent EI applications as quickly as possible," it said
in an email.
The CRA tells Go Public it can't comment on specific taxpayer
situations because of confidentiality rules under the Income Tax Act.
Generally, it says in "cases of a confirmed identity theft incident,
the CRA will ensure that proper protection and corrective actions are
taken thereby returning the taxpayer to a seamless interaction with
the CRA."
But Kotak, the security expert, says Mounsey's interaction has been
anything but seamless.
"I deal with these victims all the time and it's heartbreaking," he
said. "The toothpaste is out of the tube and to put it back is just
not possible. Once your information has been compromised it is very
hard to make somebody whole... it's very difficult, in some cases even
impossible."
'Confidence and security'
The CRA says it has improved security on its website since the hacks,
including adding mandatory multi-factor authentication and proactively
revoking user IDs and passwords that may have been stolen elsewhere.
"Canadians can use the CRA's online services with confidence and
safety," it says.
But Tanya Janca, CEO and founder of the cybersecurity company We Hack
Purple, says the site still lacks some basic security measures.
A woman with long dark hair pulled back from her face faces the
camera. She is swearing a blue top and there is a bookshelf in the
background. Cybersecurity expert Tanya Janca says the CRA’s site still
lacks basic protections and worries taxpayers’ data could be at risk.
(Google Meet)
For one, she says, it doesn't have security headers — a feature that
configures users' browsers to use defence settings while on the
website — and which are required under the federal government's
security policy.
When Go Public asked about the lack of headers, the CRA didn't respond.
She's also concerned about the site's terms and conditions, saying the
federal department is waiving responsibility if accounts get hacked,
since taxpayers don't have a choice about sharing their sensitive
information with the agency.
Go Public
Insider says Manulife Bank didn't protect customers' highly
private information for years
Go Public
A family paid over $400 for Nike shoes that lasted 10 weeks
Cyberattacks targeting CRA, Canadians' COVID-19 benefits have been
brought under control: officials
Those terms and conditions say there is a "remote possibility of data
security violations," and that the CRA is "not responsible for any
damages you may experience as a result."
The CRA told Go Public that disclaimer "ensures that taxpayers
understand their role in protecting their private information," adding
such disclaimers are commonly found on all kinds of banking and
government websites.
What's next?
Almost three years after the cyberattack, Mounsey says his credit is
messed up, and he worries about what he'll have to deal with next.
"[I need to do] everything that I can do to make sure that they're not
taking more money from me and to clear my name because no one else
seems to be helping," he said.
"I've worked with so many different people to try to rectify this, but
I get different messaging from each organization … It would be great
if they would talk to each other instead of putting all the onus on
me… It's really been a nightmare."
He's now working with Service Canada to get a new social insurance
number, but says he's not sure how much that will help since he's
still responsible for anything that happens with the old one.
Submit your story ideas
Go Public is an investigative news segment on CBC-TV, radio and the web.
We tell your stories, shed light on wrongdoing and hold the powers
that be accountable.
If you have a story in the public interest, or if you're an insider
with information, contact GoPublic@cbc.ca with your name, contact
information and a brief summary. All emails are confidential until you
decide to Go Public.
Read more stories by Go Public.
ABOUT THE AUTHOR
Rosa Marchitelli
@cbcRosa
Rosa Marchitelli is a national award winner for her investigative
work. As co-host of the CBC News segment Go Public, she has a
reputation for asking tough questions and holding companies and
individuals to account. Rosa's work is seen across CBC News platforms.
CBC's Journalistic Standards and Practices
589 Comments
David Amos
Justice Mounsey should talk to me ASAP
---------- Forwarded message ----------
From: David Amos <david.raymond.amos333@gmail.com>
Date: Fri, 7 Oct 2022 15:13:53 -0300
Subject: Re The CRA in the news again Deja Vu anyone???
To: dmilot@milotlaw.ca, contactus@taxationlawyers.ca,
acampbell@legacylawyers.ca, jdp@tdslaw.com, "Nathalie.Drouin"
<Nathalie.Drouin@justice.gc.ca>, Diane.Lebouthillier@parl.gc.ca,
"erin.otoole" <erin.otoole@parl.gc.ca>, pm <pm@pm.gc.ca>, premier
<premier@ontario.ca>, Newsroom <Newsroom@globeandmail.com>,
"jagmeet.singh" <jagmeet.singh@parl.gc.ca>, "Bill.Blair"
<Bill.Blair@parl.gc.ca>, "Brenda.Lucki" <Brenda.Lucki@rcmp-grc.gc.ca>,
mcu <mcu@justice.gc.ca>, nathalie.sturgeon@globalnews.ca,
"Jason.Proctor" <Jason.Proctor@cbc.ca>, "John.Williamson"
<John.Williamson@parl.gc.ca>, "Ross.Wetmore" <Ross.Wetmore@gnb.ca>,
"blaine.higgs" <blaine.higgs@gnb.ca>, "rob.moore"
<rob.moore@parl.gc.ca>, "Robert. Jones" <Robert.Jones@cbc.ca>,
"steve.murphy" <steve.murphy@ctv.ca>, "Melanie.Joly"
<Melanie.Joly@parl.gc.ca>, "Mark.Blakely"
<Mark.Blakely@rcmp-grc.gc.ca>, "martin.gaudet"
<martin.gaudet@fredericton.ca>, "Mitton, Megan (LEG)"
<megan.mitton@gnb.ca>, "michael.macdonald"
<michael.macdonald@thecanadianpress.com>
Cc: motomaniac333 <motomaniac333@gmail.com>, sheilagunnreid
<sheilagunnreid@gmail.com>, "silas.brown" <silas.brown@globalnews.ca>,
christian.lorenz@international.gc.ca
---------- Forwarded message ----------
From: "Lorenz, Christian" <Christian.Lorenz@cbsa-asfc.gc.ca>
Date: Fri, 7 Oct 2022 17:32:23 +0000
Subject: Automatic reply: Attn Jeff Pniowsky I was readig about you in
CBC today perhaps we should talk ASAP?
To: David Amos <david.raymond.amos333@gmail.com>
This email is not routinely monitored.
I am in my new role as Regional Director, Europe, Africa and Middle
East, and can be reached at: christian.lorenz@international.gc.ca
effective 15 August 2022.
Thank you.
**
Cette addresse courriel n'est pas surveillée régulièrement.
Je suis dans mon nouveau rôle comme Directeur Régional, Europe,
Afrique et Moyen-Orient, et peux être rejoint au:
christian.lorenz@international.gc.ca dés le 15 août 2022.
Merci.
---------- Forwarded message ----------
From: David Amos <david.raymond.amos333@gmail.com>
Date: Fri, 12 Mar 2021 15:00:03 -0400
Subject: Re The CRA in the news again Deja Vu anyone???
To: dmilot@milotlaw.ca, contactus@taxationlawyers.ca,
acampbell@legacylawyers.ca, jdp@tdslaw.com, "Nathalie.Drouin"
<Nathalie.Drouin@justice.gc.ca>, Diane.Lebouthillier@parl.gc.ca,
"erin.otoole" <erin.otoole@parl.gc.ca>, pm <pm@pm.gc.ca>, premier
<premier@ontario.ca>, Newsroom <Newsroom@globeandmail.com>,
"jagmeet.singh" <jagmeet.singh@parl.gc.ca>, "Bill.Blair"
<Bill.Blair@parl.gc.ca>, "Brenda.Lucki" <Brenda.Lucki@rcmp-grc.gc.ca>,
mcu <mcu@justice.gc.ca>
Cc: motomaniac333 <motomaniac333@gmail.com>, Nathalie Sturgeon
<sturgeon.nathalie@brunswicknews.com>, "Jason.Proctor"
<Jason.Proctor@cbc.ca>, "John.Williamson"
<John.Williamson@parl.gc.ca>, "Ross.Wetmore" <Ross.Wetmore@gnb.ca>,
"blaine.higgs" <blaine.higgs@gnb.ca>, "rob.moore"
<rob.moore@parl.gc.ca>, "Robert. Jones" <Robert.Jones@cbc.ca>,
"steve.murphy" <steve.murphy@ctv.ca>
https://davidraymondamos3.blogspot.com/2021/03/rcmp-threaten-bc-church-with-canada.html
Sunday, 7 March 2021
RCMP threaten a BC church with Canada Revenue Agency investigation???
NOW THATS TOO TOO FUNNY INDEED
https://www.cbc.ca/news/canada/british-columbia/cra-gross-negligence-demara-penalties-1.5945861
Canada Revenue Agency accused of blaming victims as 'gross negligence'
cases drag on
B.C. retiree who won appeal of $139K penalty claimed she didn't know
what was filed on her behalf
Jason Proctor · CBC News · Posted: Mar 11, 2021 5:45 PM PT
About the Author
Jason Proctor @proctor_jason
Jason Proctor is a reporter in British Columbia for CBC News and has
covered the B.C. courts and mental health issues in the justice system
extensively.
https://www.tdslaw.com/person/jeff-pniowsky/
Jeff Pniowsky
Jeff focuses his practice in the areas of tax litigation and dispute
resolution in the tax audit and appeals process, tax advisory
services, and complex commercial litigation.
(204) 934-0586
jdp@tdslaw.com
https://www.canlii.org/en/ca/tcc/doc/2021/2021tcc14/2021tcc14.html?searchUrlHash=AAAAAQAJdmFuY291dmVyAAAAAAE&resultIndex=3
Signed at Ottawa, Canada, this 2nd day of March 2021.
“Sylvain Ouimet”
Ouimet J.
CITATION:
2021 TCC 14
COURT FILE NO.:
2016-1686(IT)G
STYLE OF CAUSE:
MARGO DIANNE BOWKER
AND HER MAJESTY THE QUEEN
PLACE OF HEARING:
Vancouver, British Columbia
DATE OF HEARING:
February 10, 11, 12 and 13, 2020
REASONS FOR JUDGMENT BY:
The Honourable Justice Sylvain Ouimet
DATE OF JUDGMENT:
---------- Forwarded message ----------
From: David Amos <david.raymond.amos333@gmail.com>
Date: Fri, 7 Oct 2022 14:47:27 -0300
Subject: Fwd: Attn Jeff Pniowsky I was readig about you in CBC today
perhaps we should talk ASAP?
To: hmartinez@tdslaw.com, cdacosta@tdslaw.com
Cc: motomaniac333 <motomaniac333@gmail.com>
---------- Forwarded message ----------
From: Danielle Delorme <ddelorme@tdslaw.com>
Date: Fri, 7 Oct 2022 17:40:00 +0000
Subject: Automatic reply: Réponse automatique : Attn Jeff Pniowsky I
was readig about you in CBC today perhaps we should talk ASAP?
To: David Amos <david.raymond.amos333@gmail.com>
I will be out of the office Friday, September 30th and returning
Tuesday, October 11th.
I will not be checking emails during this time.
If you requrie assistance before October 11th, please contact either:
Colleen Da Costa 204-934-2340 cdacosta@tdslaw.com
Heather Martinez 204-934-2379 hmartinez@tdslaw.com
Thank you,
Danielle Delorme
Click the following link to unsubscribe or subscribe to TDS e-communications:
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---------- Forwarded message ----------
From: David Amos <david.raymond.amos333@gmail.com>
Date: Fri, 7 Oct 2022 14:32:11 -0300
Subject: Attn Jeff Pniowsky I was readig about you in CBC today
perhaps we should talk ASAP?
To: jdp@tdslaw.com, mcu <mcu@justice.gc.ca>
Cc: motomaniac333 <motomaniac333@gmail.com>, "Jason.Proctor"
<Jason.Proctor@cbc.ca>, "blaine.higgs" <blaine.higgs@gnb.ca>,
Diane.Lebouthillier@cra-arc.gc.ca, Andrew.LeFrank@cbsa-asfc.gc.ca,
Andrew.Baumberg@cas-satj.gc.ca, "Ellen.Desmond"
<Ellen.Desmond@crtc.gc.ca>, Christian.Lorenz@cbsa-asfc.gc.ca,
Allison.St-Jean@tc.gc.ca, media@tc.gc.ca, hc.media.sc@canada.ca,
mary-liz.power@canada.ca, media@cbsa-asfc.gc.ca,
Chris.Lorenz@cbsa-asfc.gc.ca, "christopher.rupar"
<christopher.rupar@justice.gc.ca>
https://www.cbc.ca/news/canada/new-brunswick/duty-to-document-nb-1.6608066
New Brunswick·CBC Investigates
How to keep secrets from the public: Don't write anything down
https://www.cbc.ca/news/canada/british-columbia/demara-tax-court-appeals-abuse-1.6608659
Judge slams CRA and Justice Department for 'egregious' conduct in epic
Tax Court battle
Decision likely to affect dozens of Canadians appealing gross
negligence penalties from tax agency
Jason Proctor · CBC News · Posted: Oct 07, 2022 4:00 AM PT |
A tax Court judge has slammed the Canada Revenue Agency for failing to
comply with pre-trial court rules and orders. (Chris Wattie/Reuters)
A Tax Court judge has slammed the Canada Revenue Agency and the
Justice Department for "egregious" conduct that threatened to deny
three taxpayers the right to a fair trial in an epic battle over
millions of dollars worth of tax penalties.
In a scathing decision that could have widespread implications, Judge
Patrick Boyle found the CRA committed an "intentional and deliberate"
pattern of ignoring court rules to "frustrate" the right that all
Canadians have to get a full picture of an opponent's case before
heading to court.
The three taxpayers — a Manitoba psychiatrist, an Ontario nurse and a
B.C. Air Canada pilot — were appealing three million dollars' worth of
gross negligence penalties levelled against them, for rejected returns
filed through a pair of disgraced tax consultancy firms.
But after years of pre-trial delays resulting from the CRA's repeated
failure to comply with his orders, Boyle took the extraordinary
measure of allowing the appeals without having a trial on the merits
of the case this week, to "protect the integrity of the judicial
process."
Canada Revenue Agency accused of blaming victims as 'gross
negligence' cases drag on
"I find the [CRA's] egregious approach to pre-trial discovery in these
appeals to prejudice all three appellants who have been denied," Boyle
wrote in his ruling.
"These abuses of the discovery process ... have caused considerable
delay and expense to three Appellants in respect of their appeals.
They have also led to an inefficient use of public resources financed
by all Canadians."
'With great power comes great responsibility'
Boyle's decision is the latest chapter in a saga that has seen
hundreds of Canadians slapped with gross negligence penalties after
filing returns through DeMara Consulting and Fiscal Arbitrators.
The principals of both companies were jailed for tax fraud for
promoting schemes Boyle says "resemble in many respects the
de-taxation practices of sovereign citizens, though with less of the
non-fiscal cultish aspects."
Hundreds of Canadians filed appeals in Tax Court after the CRA
levelled gross negligence penalties against them in association with
returns filed through a pair of disgraced tax consultancies. (Minichka
/ Shutterstock)
According to court records, B.C.-based DeMara's scheme was called "the
remedy" and essentially involved claiming personal expenditures and
debts as expenses and capital losses for a non-existent business.
Canada's Income Tax Act gives CRA the ability to levy penalties
against Canadians who make false statements and omissions on their tax
returns, either knowingly or under circumstances that amount to gross
negligence.
The penalties in the DeMara and Fiscal Arbitrators case have reached
into the millions, leading to a huge backlog of appeals that have been
making their way through tax court since 2013.
Tax agency obtains 'jeopardy order' for debt from Downton
Abbey-loving billionaire
Jeff Pniowsky, the Winnipeg-based lawyer who represented all three
plaintiffs, said fighting a decade-long court battle with the threat
of financial ruin hanging over their heads has cost his clients "years
of happiness."
"This was fundamentally a case about justice. Justice for the
taxpayers who had to endure years of gamesmanship and chicanery by one
of Canada's most powerful institutions: the CRA," Pniowsky told the
CBC.
Pniowsky, who has four children, said Boyle's ruling reminded him of a
line from one of his family's favourite superhero movies: Spiderman.
"With great power comes great responsibility," he said.
"It's clear from this case that the CRA and the Justice Department
have lost sight of that common-sense principle."
'Unprepared, unco-operative or untruthful'
Boyle's detailed 53-page ruling goes through the history of the case,
and the circumstances that led to each of the orders he found the CRA
later ignored.
The fight centred on pre-trial discovery, and the rights of the
taxpayers to examine a CRA representative or "nominee" who was
"knowledgeable" about their case.
The CRA has the ability to levy gross negligence penalties against
taxpayers who lie on their income tax forms. The penalties have been
devastating for some. (Graeme Roy/The Canadian Press)
The first person the agency put forward was "unaware of any criminal
investigation and had not informed himself" about any involvement of
the CRA's criminal investigators in the case.
The second nominee was a lead criminal investigator who "did not even
inform himself ... whether any investigation was undertaken of any of
these three appellants."
At one point, Boyle called the investigator "thoroughly unprepared,
unco-operative or untruthful."
The judge said the CRA and its lawyers twisted the words of an order
that boiled down to a demand for the agency to hand over any documents
relating to any investigations that touched on the three appellants.
"I variously described this as 'outrageously misleading and
inappropriate,' 'this might be contemptuous,' ... 'deeply, deeply
disturbed,' 'highly inappropriate' and 'I don't think you were
reasonably mistaken,'" Boyle wrote.
It is an ex-reference: B.C. judge removes 'dead parrot' joke from
class-action ruling
The judge also zeroed in on the CRA's failure to tell the defence that
the second page of a three-page "Investigation Abort Report" against
one of the plaintiffs had gone missing. The report was handed over in
the middle of hundreds of documents. The missing page explained why a
criminal investigation was dropped.
The CRA claimed it had no "specific obligation" to point out missing
pages — a position Boyle found "shocking."
"Courts do not consider discovery to be a game, and it is particularly
disappointing when the Crown is the offending party," the judge said.
He said the omission gave credence to the idea the CRA "is hiding
something from them, from the Court and from Canadians about how these
investigations have been conducted.
'Stop, or I'll yell stop again!'
The judge pointed out that the CRA is "represented by the Department
of Justice which is essentially Canada's largest national law firm and
employs a large number of tax litigation lawyers who are wholly
familiar" with the court's rules.
Boyle said making yet another order for compliance would be pointless.
The judge compared his battle to get the CRA to comply with his orders
to a skit by Monty Python, whose troupe members are seen here from
left to right: John Cleese, Terry Gilliam, Terry Jones, Graham
Chapman, Michael Palin and Eric Idle. (PBS/Python (Monty) Pictures
Ltd./The Associated Press)
He was reminded of a skit by legendary English comedy troupe Monty Python.
"To make such an order would conjure up memories of the Pythonesque
skit of the British bobby of another era yelling at a scofflaw: 'Stop!
Stop!—Stop, or I'll yell 'stop' again!'" the judge wrote.
The three appeals were supposed to be the lead plaintiffs for a much
larger group of appeals. The judge said those people will have to
speak with their lawyers to determine how the ruling applies to them.
Pniowsky says he believes the decision is the first of its kind
against the CRA. He predicted fallout both in other DeMara and Fiscal
Arbitrators cases and in the wider world of tax litigation.
"Intoxicated with a sense of moral righteousness, the government
apparently determined or acted like these Canadians were not worthy of
basic procedural rights, thereby committing the same wrongs they
accused the taxpayers of: gross neglect, wilful blindness and at times
deceptive conduct," he said.
ABOUT THE AUTHOR
Jason Proctor
@proctor_jason
Jason Proctor is a reporter in British Columbia for CBC News and has
covered the B.C. courts and the justice system extensively.
CBC's Journalistic Standards and Practices
https://www.tdslaw.com/lawyers/jeff-pniowsky/
Jeff Pniowsky
Jeff focuses his practice in the areas of tax litigation and dispute
resolution in the tax audit and appeals process, tax advisory
services, and complex commercial litigation.
(204) 934-2586
jdp@tdslaw.com
Winnipeg
(204) 934-0586
Profile
Jeff is a partner with TDS who focuses his practice in the areas of
tax litigation and dispute resolution in the tax audit and appeals
process, tax advisory services, as well as complex commercial
litigation. Formerly a senior Tax Litigator with the Federal
Department of Justice acting on behalf of the Canada Revenue Agency
(CRA) for almost 10 years, Jeff now serves local and national clients
with a wealth of experience in litigating at all levels of both the
Provincial and Federal courts, including the Supreme Court of Canada.
His work has included challenges to complex tax avoidance techniques
involving large corporate transactions, international taxation and
interpretation of tax treaties. Jeff has advised the Aggressive Tax
Planning Division of CRA involving some of the most significant tax
matters in the Prairie region. He also sat on the National Tax
Avoidance committee for Justice Canada.
In addition, Jeff has extensive experience dealing with tax
enforcement and other regulatory compliance issues including
disclosure requirements and was a member of national Documentary
Requirements Committee. He is also considered an authority on
solicitor and client privilege issues relating to documentary
disclosure, having litigated several matters in this area as well as
being called upon to act as an adjudicator in a privilege
determination.
---------- Forwarded message ----------
From: David Amos <david.raymond.amos333@gmail.com>
Date: Sun, 7 Feb 2021 23:52:35 -0400
Subject: Diane.Lebouthillier and her old buddy John Ossowski should
remember my email and a couple of their own documents EH Madame
Desmond and Christian Lorenz ?
To: "Diane.Lebouthillier" <Diane.Lebouthillier@cra-arc.gc.ca>,
John.Ossowski@cbsa-asfc.gc.ca, megan.maloney@crtc.gc.ca,
bell.regulatory@bell.ca, martine.turcotte@bell.ca, Newsroom
<Newsroom@globeandmail.com>, Nathalie Sturgeon
<sturgeon.nathalie@brunswicknews.com>, "Nathalie.Drouin"
<Nathalie.Drouin@justice.gc.ca>, Norman Traversy
<traversy.n@gmail.com>, jswaisland@landingslaw.com,
Andrew.LeFrank@cbsa-asfc.gc.ca, Andrew.Baumberg@cas-satj.gc.ca
Cc: motomaniac333 <motomaniac333@gmail.com>, "Ellen.Desmond"
<Ellen.Desmond@crtc.gc.ca>, Christian.Lorenz@cbsa-asfc.gc.ca,
Allison.St-Jean@tc.gc.ca, media@tc.gc.ca, hc.media.sc@canada.ca,
mary-liz.power@canada.ca, media@cbsa-asfc.gc.ca,
Chris.Lorenz@cbsa-asfc.gc.ca, "christopher.rupar"
<christopher.rupar@justice.gc.ca>
----- Original Message -----
From: martine.turcotte@bell.ca
To: motomaniac_02186@hotmail.com
Cc: bcecomms@bce.ca ; W-Five@ctv.ca
Sent: Thursday, August 19, 2004 9:28 AM
Subject: RE: I am curious
Mr. Amos, I confirm that I have received your documentation. There is
no need to send us a hard copy. As you have said yourself, the
documentation is very voluminous and after 3 days, we are still in the
process of printing it. I have asked one of my lawyers to review it
in my absence and report back to me upon my return in the office. We
will then provide you with a reply.
Martine Turcotte
Chief Legal Officer / Chef principal du service juridique
BCE Inc. / Bell Canada
1000 de La Gauchetière ouest, bureau 3700
Montréal (Qc) H3B 4Y7
Tel: (514) 870-4637
Fax: (514) 870-4877
email: martine.turcotte@bell.ca
Executive Assistant / Assistante à la haute direction: Diane Valade
Tel: (514) 870-4638
email: diane.valade@bell.ca
A copy of this letter and all related correspondence will be added to
the public record of the proceeding.
If you have any questions or concerns, please feel free to contact me
at (613) 697-4027 or megan.maloney@crtc.gc.ca.
In the meantime, the Commission is currently continuing its review of
this costs application.
Yours Sincerely,
originally signed by
Megan Maloney
Legal Counsel
PIAC Welcomes New Board Members
Adds Expertise in Telecommunications, Broadcasting and Class Actions
OTTAWA – The Public Interest Advocacy Centre (PIAC), today announced
the recent election of four new directors to its Board, all experts in
either telecommunications, broadcasting or class actions:
Konrad von Finckenstein is a lawyer and consultant based in
Ottawa. He was previously Chair of the Canadian Radio-television and
Telecommunications Commission (CRTC), an Honourable Justice of the
Federal Court of Canada and the Commissioner of Competition at the
Competition Bureau of Canada. In addition, he has held senior posts in
the Government of Canada in positions related to international trade,
telecommunications, competition and electronic commerce. Mr. von
Finckenstein has been elected as PIAC’s Chair of the Board.
Suzanne Lamarre is a lawyer and engineer with the firm of
Therrien, Couture and is a former Commissioner of the CRTC. Maitre
Lamarre works in the areas of telecommunications, radiocommunications
and broadcasting law as a strategic advisor on regulatory and
governmental matters at both the national and international level.
Monica Auer is a lawyer and the Executive Director of Canada’s
Forum for Research & Policy in Communications (FRPC), a non-partisan
organization focused on Canada’s communications system. She previously
worked at the CRTC and the Canadian Broadcasting Corporation (CBC).
Ms. Auer has been elected as PIAC’s Vice-Chair.
Jonathan Schachter is a Toronto based lawyer with Sotos LLP, with
his practice areas including class actions, consumer protection
litigation, competition and price fixing, privacy litigation,
professional liability litigation, and trademarks and intellectual
property litigation and arbitration.
“PIAC’s extensive work on behalf of consumers before the CRTC requires
the utmost guidance and insight,” said John Lawford, Executive
Director and General Counsel of PIAC. “We are therefore thrilled to
add to our Board persons with unparalleled experience to guide our
communications advocacy, as well as an expert in consumer class
actions as this sector becomes more litigious,” he added.
PIAC is a federally incorporated not-for-profit and registered charity
that advocates for consumer interests, and in particular vulnerable
consumer interests, in the provision of important public services.
PIAC is known for its representation of consumer, low-income and
seniors groups before the CRTC, arguing for better services, more
choice and consumer protection for customers of Internet, wireless,
telephone and broadcasting services.
For more information, please contact:
John Lawford
Executive Director and General Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002 ×25
> http://davidraymondamos3.blogspot.com/2017/02/re-fatca-nafta-tpp-etc-attn-president.html
>
> Tuesday, 14 February 2017
>
> RE FATCA, NAFTA & TPP etc ATTN President Donald J. Trump I just got
> off the phone with your lawyer Mr Cohen (646-853-0114) Why does he lie
> to me after all this time???
>
> ---------- Forwarded message ----------
> From: Michael Cohen <mcohen@trumporg.com>
> Date: Tue, 14 Feb 2017 14:15:14 +0000
> Subject: Automatic reply: RE FATCA ATTN Pierre-Luc.Dusseault I just
> called and left a message for you
> To: David Amos <motomaniac333@gmail.com>
>
> Effective January 20, 2017, I have accepted the role as personal
> counsel to President Donald J. Trump. All future emails should be
> directed to mdcohen212@gmail.com and all future calls should be
> directed to 646-853-0114.
> ________________________________
> This communication is from The Trump Organization or an affiliate
> thereof and is not sent on behalf of any other individual or entity.
> This email may contain information that is confidential and/or
> proprietary. Such information may not be read, disclosed, used,
> copied, distributed or disseminated except (1) for use by the intended
> recipient or (2) as expressly authorized by the sender. If you have
> received this communication in error, please immediately delete it and
> promptly notify the sender. E-mail transmission cannot be guaranteed
> to be received, secure or error-free as emails could be intercepted,
> corrupted, lost, destroyed, arrive late, incomplete, contain viruses
> or otherwise. The Trump Organization and its affiliates do not
> guarantee that all emails will be read and do not accept liability for
> any errors or omissions in emails. Any views or opinions presented in
> any email are solely those of the author and do not necessarily
> represent those of The Trump Organization or any of its
> affiliates.Nothing in this communication is intended to operate as an
> electronic signature under applicable law.
>
>
>
>
> ---------- Forwarded message ----------
> From: "Min.Mail / Courrier.Min (CRA/ARC)" <PABMINMAILG@cra-arc.gc.ca>
> Date: Wed, 24 May 2017 13:10:52 +0000
> Subject: Your various correspondence about abusive tax schemes - 2017-02631
> To: "motomaniac333@gmail.com" <motomaniac333@gmail.com>
>
> Mr. David Raymond Amos
> motomaniac333@gmail.com
>
>
> Dear Mr. Amos:
>
> Thank you for your various correspondence about abusive tax schemes,
> and for your understanding regarding the delay of this response.
>
> This is an opportunity for me to address your concerns about the way
> the Canada Revenue Agency (CRA) deals with aggressive tax planning,
> tax avoidance, and tax evasion by targeting individuals and groups
> that promote schemes intended to avoid payment of tax. It is also an
> opportunity for me to present the Government of Canada’s main
> strategies for ensuring fairness for all taxpayers.
>
> The CRA’s mission is to preserve the integrity of Canada’s tax system,
> and it is taking concrete and effective action to deal with abusive
> tax schemes. Through federal budget funding in 2016 and 2017, the
> government has committed close to $1 billion in cracking down on tax
> evasion and combatting tax avoidance at home and through the use of
> offshore transactions. This additional funding is expected to generate
> federal revenues of $2.6 billion over five years for Budget 2016, and
> $2.5 billion over five years for Budget 2017.
>
> More precisely, the CRA is cracking down on tax cheats by hiring more
> auditors, maintaining its underground economy specialist teams,
> increasing coverage of aggressive goods and service tax/harmonized
> sales tax planning, increasing coverage of multinational corporations
> and wealthy individuals, and taking targeted actions aimed at
> promoters of abusive tax schemes.
>
> On the offshore front, the CRA continues to develop tools to improve
> its focus on high‑risk taxpayers. It is also considering changes to
> its Voluntary Disclosures Program following the first set of program
> recommendations received from an independent Offshore Compliance
> Advisory Committee. In addition, the CRA is leading international
> projects to address the base erosion and profit shifting initiative of
> the G20 and the Organisation for Economic Co-operation and
> Development, and is collaborating with treaty partners to address the
> Panama Papers leaks.
>
> These actions are evidence of the government’s commitment to
> protecting tax fairness. The CRA has strengthened its intelligence and
> technical capacities for the early detection of abusive tax
> arrangements and deterrence of those who participate in them. To
> ensure compliance, it has increased the number of actions aimed at
> promoters who use illegal schemes. These measures include increased
> audits of such promoters, improved information gathering, criminal
> investigations where warranted, and better communication with
> taxpayers.
>
> To deter potential taxpayer involvement in these schemes, the CRA is
> increasing notifications and warnings through its communications
> products. It also seeks partnerships with tax preparers, accountants,
> and community groups so that they can become informed observers who
> can educate their clients.
>
> The CRA will assess penalties against promoters and other
> representatives who make false statements involving illegal tax
> schemes. The promotion of tax schemes to defraud the government can
> lead to criminal investigations, fingerprinting, criminal prosecution,
> court fines, and jail time.
>
> Between April 1, 2011, and March 31, 2016, the CRA’s criminal
> investigations resulted in the conviction of 42 Canadian taxpayers for
> tax evasion with links to money and assets held offshore. In total,
> the $34 million in evaded taxes resulted in court fines of $12 million
> and 734 months of jail time.
>
> When deciding to pursue compliance actions through the courts, the CRA
> consults the Department of Justice Canada to choose an appropriate
> solution. Complex tax-related litigation is costly and time consuming,
> and the outcome may be unsuccessful. All options to recover amounts
> owed are considered.
>
> More specifically, in relation to the KPMG Isle of Man tax avoidance
> scheme, publicly available court records show that it is through the
> CRA’s efforts that the scheme was discovered. The CRA identified many
> of the participants and continues to actively pursue the matter. The
> CRA has also identified at least 10 additional tax structures on the
> Isle of Man, and is auditing taxpayers in relation to these
> structures.
>
> To ensure tax fairness, the CRA commissioned an independent review in
> March 2016 to determine if it had acted appropriately concerning KPMG
> and its clients. In her review, Ms. Kimberley Brooks, Associate
> Professor and former Dean of the Schulich School of Law at Dalhousie
> University, examined the CRA’s operational processes and decisions in
> relation to the KPMG offshore tax structure and its efforts to obtain
> the names of all taxpayers participating in the scheme. Following this
> review, the report, released on May 5, 2016, concluded that the CRA
> had acted appropriately in its management of the KPMG Isle of Man
> file. The report found that the series of compliance measures the CRA
> took were in accordance with its policies and procedures. It was
> concluded that the procedural actions taken on the KPMG file were
> appropriate given the facts of this particular case and were
> consistent with the treatment of taxpayers in similar situations. The
> report concluded that actions by CRA employees were in accordance with
> the CRA’s Code of Integrity and Professional Conduct. There was no
> evidence of inappropriate interaction between KPMG and the CRA
> employees involved in the case.
>
> Under the CRA’s Code of Integrity and Professional Conduct, all CRA
> employees are responsible for real, apparent, or potential conflicts
> of interests between their current duties and any subsequent
> employment outside of the CRA or the Public Service of Canada.
> Consequences and corrective measures play an important role in
> protecting the CRA’s integrity.
>
> The CRA takes misconduct very seriously. The consequences of
> misconduct depend on the gravity of the incident and its repercussions
> on trust both within and outside of the CRA. Misconduct can result in
> disciplinary measures up to dismissal.
>
> All forms of tax evasion are illegal. The CRA manages the Informant
> Leads Program, which handles leads received from the public regarding
> cases of tax evasion across the country. This program, which
> coordinates all the leads the CRA receives from informants, determines
> whether there has been any non-compliance with tax law and ensures
> that the information is examined and conveyed, if applicable, so that
> compliance measures are taken. This program does not offer any reward
> for tips received.
>
> The new Offshore Tax Informant Program (OTIP) has also been put in
> place. The OTIP offers financial compensation to individuals who
> provide information related to major cases of offshore tax evasion
> that lead to the collection of tax owing. As of December 31, 2016, the
> OTIP had received 963 calls and 407 written submissions from possible
> informants. Over 218 taxpayers are currently under audit based on
> information the CRA received through the OTIP.
>
> With a focus on the highest-risk sectors nationally and
> internationally and an increased ability to gather information, the
> CRA has the means to target taxpayers who try to hide their income.
> For example, since January 2015, the CRA has been collecting
> information on all international electronic funds transfers (EFTs) of
> $10,000 or more ending or originating in Canada. It is also adopting a
> proactive approach by focusing each year on four jurisdictions that
> raise suspicion. For the Isle of Man, the CRA audited 3,000 EFTs
> totalling $860 million over 12 months and involving approximately 800
> taxpayers. Based on these audits, the CRA communicated with
> approximately 350 individuals and 400 corporations and performed 60
> audits.
>
> In January 2017, I reaffirmed Canada’s important role as a leader for
> tax authorities around the world in detecting the structures used for
> aggressive tax planning and tax evasion. This is why Canada works
> daily with the Joint International Tax Shelter Information Centre
> (JITSIC), a network of tax administrations in over 35 countries. The
> CRA participates in two expert groups within the JITSIC and leads the
> working group on intermediaries and proponents. This ongoing
> collaboration is a key component of the CRA’s work to develop strong
> relationships with the international community, which will help it
> refine the world-class tax system that benefits all Canadians.
>
> The CRA is increasing its efforts and is seeing early signs of
> success. Last year, the CRA recovered just under $13 billion as a
> result of its audit activities on the domestic and offshore fronts.
> Two-thirds of these recoveries are the result of its audit efforts
> relating to large businesses and multinational companies.
>
> But there is still much to do, and additional improvements and
> investments are underway.
>
> Tax cheats are having a harder and harder time hiding. Taxpayers who
> choose to promote or participate in malicious and illegal tax
> strategies must face the consequences of their actions. Canadians
> expect nothing less. I invite you to read my most recent statement on
> this matter at canada.ca/en/revenue-agency/news/2017/03/
> statement_from_thehonourabledianelebouthillierministerofnational.
>
> Thank you for taking the time to write. I hope the information I have
> provided is helpful.
>
> Sincerely,
>
>
> The Honourable Diane Lebouthillier
> Minister of National Revenue
>
>
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