Ottawa to step up efforts on tax cheats in bid to collect $2.6 billion in back taxes

Posted on March 23, 2016 in Governance Delivery System

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NationalPost.com – FP/Personal Finance/Taxes – Federal budget 2016
March 22, 2016.   Drew Hasselback

The government is stepping up efforts to crack down on tax cheats, according to Budget 2016.

In its first federal budget, the new Liberal government said it will provide $444.4 million to the Canada Revenue Agency over the next five years so it can crack down on tax evasion and combat tax avoidance.

The government says it expects these efforts to result in the collection of $2.6 billion in back taxes over the next five years.

The crackdown will extend to what the federal government describes as “aggressive tax planning.” Budget 2016 will provide the CRA with $351.6 million in funding over the next five years “to improve its ability to collect outstanding tax debts.”

The government expects the proposed funding will result in the collection of $7.4 billion in tax debts over the next five years.

In the fiscal year ended 2015, Canada collected $496 billion in taxes and customs duties. The country processed 28 million individual tax returns and identified $21.9 billion in “non-compliance.”

Typically, 90 per cent of taxpayers pay their taxes on time and without intervention.

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