Canada Revenue Agency (CRA) uses a variety of tools and methods to identify non-compliance and take action to address tax cheating, as well as to correct honest mistakes.
The CRA is committed to promoting the integrity of the tax system through a wide range of compliance activities. In 2008-2009, the CRA:
obtained more than 787,000 tax returns from individuals and corporations who had failed to file, which resulted in a fiscal impact of more than $2.3 billion;
Conducted close to 374,000 audit and review actions, including 12,800 underground economy audits, and close to 1,200 audits of taxpayers suspected of earning income from illegal activities;
Detected almost $1.4 billion of unreported income for small- and medium-sized businesses;
Audit programs detected a fiscal impact of $5.2 billion identified through international and large business audits, and $2.2 billion resulting from audits and examinations of small- and medium-sized businesses (includes the fiscal impact of the $1.4 billion of unreported income noted above);
Reviewed the books and records of 4,371 businesses to ensure they were properly maintained;
Identified over 17,000 participants claiming donations of $484 million in tax shelter arrangements;
started legal actions that resulted in the conviction of over 1,100 taxpayers who failed to file their income tax returns;
resolved over 17 billion dollars of debt through various collection activities at Tax Services Offices.
In 2008-2009, CRA referrals of criminal investigations to the Public Prosecution Service of Canada resulted in:
Courts across Canada imposing fines of close to $29.2 million and offenders sentenced to more than 81 years in prison.
Convictions in 323 cases for tax evasion or fraud and convictions obtained in 98% of cases prosecuted.
More information on the compliance activities the CRA undertook in the past year can be found in the Canada Revenue Agency Annual Report to Parliament 2008 - 2009 at www.cra.gc.ca/annualreport.
The CRA's Web site contains information on programs such as the Voluntary Disclosures Program (www.cra.gc.ca/voluntarydisclosures). This program allows taxpayers to come forward and correct their tax affairs without penalty and prosecution
