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

Union president warns of firefighter shortage

Budget increase desperately needed now, and again with major projects down the road

VIDEO: The SkeenaWild Film & Photo Festival in Terrace

The festival features visual work showcasing the Skeena region

Geotechnical work underway at proposed Ktimat propane terminal

The company that wants to build a propane export terminal at Kitimat… Continue reading

Depictions of nature, poetry and colour brighten up Terrace Art Gallery

The works of Joan Turecki and Stephen Mann will be displayed until Nov. 24

GALLERY: Remembrance Day 2018

100 year later, Terrace remembers

VIDEO: Amazon to split second HQ between New York, Virginia

Official decision expected later Tuesday to end competition between North American cities to win bid and its promise of 50,000 jobs

West Fraser to reduce sawmill production in Quesnel, Fraser Lake

The move will affect 75 employees in Quesnel, 60 in Fraser Lake

Kuhnhackl scores 2 odd goals as Isles dump Canucks 5-2

Vancouver drops second game in two nights

Stink at B.C. school prompts complaints of headaches, nausea

Smell at Abbotsford school comes from unauthorized composting operation

Fear of constitutional crisis escalates in U.S.; Canadians can relate

Some say President Donald Trump is leading the U.S. towards a crisis

B.C.-based pot producer Tilray reports revenue surge, net loss

Company remains excited about ‘robust’ cannabis industry

Canada stands pat on Saudi arms sales, even after hearing Khashoggi tape

Khashoggi’s death at Saudi Arabia’s consulate in Istanbul further strained Riyadh’s already difficult relationship with Ottawa

Feds pledge money for young scientists, but funding for in-house research slips

Canada’s spending on science is up almost 10 per cent since the Liberals took office, but spending on in-house research is actually down

‘Targeted incident’ leads to death of Quesnel man

One man died of life-threatening injuries on Nov. 8

Most Read