If for some reason you decide that you’re not going to honestly file your annual return honestly and take more deductions and credits than are available to you by the Income Tax Act, then you are evading your taxes. That’s not good. It’s an offence to do that and there are some criminal penalties which you may face for such actions. Including jail time and fines which can amount to up to 200 percent of the amount that you evaded.
We’re going to show you some of the things that you that the tax agencies in Canada will consider as tax evasion.
Ignoring the law is one. This happens when a person or a business avoids paying their taxes. Most of them just report less income than they earn or stat that there are higher amounts than allowed.
Evasion or avoidance is another form of tax evasion. This occurs when someone avoids paying the full amount of your taxes by using the loopholes in the law to help them do so.
If you are caught, you will indeed have to pay a very high price for this offense. According to the Income Tax Act, Section 238, you may be required to spend up to a year in prison or you may have to pay a fine of between $1,000 and $25,000. According to Section 239, you may be required to pay half, to double the amount of the amount you were trying to save, plus a jail sentence of almost 2 years.
There have been measure taken by the CRA in order to find and stop tax evasion from happening. One of these measures is The Informants Leads Program, which works by gathering information from informants via the phone, mail or online.
There is also the investigation of instances of tax evasion by the Criminal Investigations Program and refers them to the Public Prosecution Service of Canada.
If you are looking for a professional accountant to do your taxes in Canada, then you have come to the right place as we are tax experts in Kingston Ontario and we can help process your income tax return quickly while maximizing the tax return you will receive. Our decades of income tax filing experience can help you with your personal and business taxes in Kingston. Remove the headache from taxes and let our skilled tax consultants handle your accounting and bookkeeping to process smooth tax returns for you. Precise, Accurate Instant Tax Refunds Since 2002
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