CRA Annual Report to Parliament 2011-2012 (PDF - Agence du ...

pre-payment review of GST/HST refunds by making sure
that we screen GST/HST credits and certain debit returns
consistently.
Audit activity related to GST/HST identified over
$1.1 billion in non-compliance.
non-filer/non-registrant
This program is responsible for identifying individuals,
corporations, and trusts that do not file tax returns, and
businesses that should be registered to collect and remit
GST/HST.
We use a graduated approach to address filing and
registration non-compliance. This includes sending a
letter, calling a taxpayer, or using our specialists to identify
taxpayers who have not registered or have outstanding
tax returns.
As a result of this program in
2011-2012:
$2.6 billion in taxes were
identified;
630,384 returns were
identified and filed;
8,569 business were
identified and registered for
GST/HST; and
154,671 GST/HST delinquent filers were identified
and addressed.
Our actions contributed to 99% of corporations and 97.5%
of individuals filing their returns within five years of the
filing due date.
The CRA is always looking at new methods to encourage
taxpayers to comply. This year we launched a project to
send new GST/HST registrants and employers automated
reminders of the dates that their returns and payments
were due. We found that the registrants we contacted
were 12% more likely to comply than those we did not
contact. These results are encouraging and we will
continue to test this reminder service for new businesses
in 2012-2013.
ANNUAL REPORT
2011-2012
CANADA REVENUE AGENCY
did you know? You can
report suspected tax
evasion anonymously
by contacting the CRA’s
informant leads centre.
aggressive tax planning
Aggressive tax planning is a challenge that developed
countries are confronting. It can involve very complex
structures with both domestic and international elements.
It is often arranged by tax planners and promoters for
individuals, trusts, and corporations, and may have a legal
basis in a technical sense, but it goes beyond what
Parliament intended when the laws were passed. In
general, aggressive tax planning arrangements are made
for the primary purpose of avoiding taxes. Left unchecked,
aggressive tax planning is a risk to the integrity and
fairness of Canada’s tax system.
The CRA has a multi-faceted strategy to combat
aggressive tax planning. It includes using specialists at our
centres of expertise, working with other tax jurisdictions
and the Organisation for Economic Co-operation and
Development (OECD), to share information on tax
schemes, identifying legislative
amendments to close loopholes
discovered during audits, and
working with the Department of
Finance to negotiate international
tax information exchange
agreements.
This strategy resulted in
identifying $1.3 billion in fiscal
impact in 2011-2012.
Another part of our strategy involves third-party penalties
to dissuade promoters from marketing aggressive tax
planning arrangements. During 2011-2012, we closed a
total of 17 third-party penalty cases. The total value of the
penalties applied was in excess of $2.5 million.
charities
Registered charities in Canada are tax exempt and can
issue charitable donation receipts to donors. To keep
these privileges, registered charities must file a registered
charity information return and financial statements, and
they must operate within the parameters of the Income
Tax Act.
Although cases of serious and intentional non-compliance
are not widespread, they do exist. Examples include
abusive tax shelter schemes as described in the aggressive