It’s a bad news day for tax cheats in Canada, as the Canadian Revenue Authority (CRA), has recently announced its plans to intensify tax collection efforts. According to statistics, the average Canadian will pay out up to 41% of their lifetime income in taxes, however it appears that even at such relatively high rates, there seems to be a remarkably high amount of tax leakage. The agency believes that its new efforts which will require a government commitment of approximately $444, 000, will eventually rake in up to $2.6 billion over the next 5 years in what is an ambitious but potentially profitable drive.
The new plan includes increased scrutiny of all digital funds transfers of $10, 000 and above, connected with the isle of Man, a notorious tax haven, and three other unspecified jurisdictions. Also, the CRA plans as a part of this initiative, to increase monitoring, auditing and prosecution of organizations which support tax evasion activities. Plans for the implementation of this include setting up a unique organization specifically for this purpose.
All of this comes on the back of the “Panama Papers” leak, which revealed the extent to which wealthy individuals have gone, in the past, to hide their funds from tax collectors. Canadians are outraged, according to public opinion polls, even though these same reports show that many less affluent Canadians would also attempt to shield their funds if they could. If experience has taught us one thing, it is that the rich will always continue to find new and smarter ways of hiding their money, but for now, the noose seems to be closing in on all runaway dollars and their owners.