The Income Tax Act, its regulations and the many associated tax laws can create difficulties for many Canadians. It is not easy to navigate.
In most cases, well before a tax problem becomes a tax fraud prosecution, the individual will have ample warning from the Canada Revenue Agency (‘CRA’). CRA will notify the individual about a concern via telephone or mail.
Most tax problems arise when individuals do not consult with tax professionals and tax lawyers. Tax law is extremely complicated. The question of what is a valid “tax write-off” or tax deduction is based on the Income Tax Act, its regulations and innumerable rulings by CRA and the courts. Ignoring tax problems or acting without suitable consultation with tax professionals can lead to charges of tax fraud.
Tax fraud is a broad and generic term. Tax fraud includes many different scenarios where a tax problem or a tax issue becomes the subject of a CRA investigation. Tax fraud can involve Criminal Code or Income Tax Act offences or both. They may also involve offences under various other laws that involve some form or tax measures, such as the Bankruptcy and Insolvency Act, the Customs Act, the Excise Act, the Greenhouse Gas Pollution Pricing Act, and many others.
Tax evasion is a classic tax fraud offence. Failure to declare earned income to avoid paying taxes is criminal offence and an income tax offence. Failing to pay tax instalments for those that are self-employed is also tax evasion and tax fraud.
Failure to pay HST or HST instalments is another type of tax fraud problem that can lead to criminal or tax fraud charges.
Making a false statement or making incomplete disclosure in a bankruptcy proceeding is another type of crime in the tax fraud category.
Failure to pay duties, for example by failing to declare merchandise coming back into Canada from a trip, is a type of tax fraud under the Customs Act.
Smuggling or dealing in the illegal trade of cigarettes and other products regulated by the Excise Act is a type fraud problem
If you find yourself facing any type of tax problem related to payment and non-payment of money to the government, for a wide range of reasons, you need to consult a lawyer immediately. With immediate help, tax fraud charges and a tax fraud prosecution may be averted. If you are already charged with a tax fraud type of offence and need advice or assistance, you also need to consult a lawyer immediately.
Or office has experience in dealing with a wide range to tax fraud issues. We are available and ready to help. Call anytime to arrange and appointment.
