Canadians dodged paying feds up to $3B in taxes on foreign income: CRA

OTTAWA — Canadians dodged paying Ottawa somewhere between $800 million and $3 billion worth of taxes on foreign personal income in 2014, says a new federal estimate released Thursday.

The study by the Canada Revenue Agency says the missing funds represented between 0.6 per cent and 2.2 per cent of the total income tax revenue Ottawa collected that year from individuals.

So far, the federal government has collected up to $14.6 billion less than it would have in 2014, had all tax obligations been fully met — and that number is expected to grow as the agency’s research continues.

In previous reports, the agency has already released other estimates on the so-called tax gap — the difference between what is owed to the government and what was collected — for personal income tax and the federal portion of the GST and HST.

The agency’s next study will focus on domestic and international businesses, a report it says will provide CRA with its first estimate of Canada’s overall tax gap.

The latest numbers come as Ottawa invests more resources in analyzing and cracking down on tax evasion.

“Most Canadians pay their fair share of taxes,” National Revenue Minister Diane Lebouthillier said in a statement. “They expect their government to pursue people and businesses that try to avoid doing the same.”

The agency said Thursday that international audits it conducted between 2014-15 and 2016-17 uncovered close to $1 billion in income — and identified $284 million in additional taxes. In the process, it assessed 370 individuals, 200 corporations and a small number of trusts.

The CRA analysis also found that in 2014, Canadians earned $9 billion in foreign income and held a total of $429 billion worth of assets outside the country — with most of it reported in the United States and the United Kingdom.

Just Posted

Improving life for people with Alzheimer’s and their families is a priority for Raitt

The federal Conservatives deputy leader is dealing with the disease in her own home

PHOTO: International Peace Day

Visitors broke bread, made crafts and trading cards at a gathering marking… Continue reading

Snowfall warning issued for Central Alberta

Environment Canada issued a snowfall warning for Central Alberta Friday afternoon. Warning… Continue reading

POLL: Most Red Deerians don’t want cell phones in the classroom

Sixty-six per cent of Advocate readers who responded to an on-line poll… Continue reading

Grassroots movement to clean up Red Deer is gaining momentum

Homeless people need more attention than shopping carts, says former councillor Cindy Jefferies

Updated: Grey Cup in Red Deer to raise funds for military families

Money raised will go to the Military Family Resource Centre and be used locally

Mistrial denied in Calgary murder trial over jury’s visit to hotel Denny’s

CALGARY — A Calgary judge has denied a request for a mistrial… Continue reading

Former Canadian astronaut says space shuttle is a vehicle of hope

OTTAWA — Sending messages of hope from space is a big part… Continue reading

Canada requests trade panel on uncoated groundwood paper ruling by U.S.

OTTAWA — Canada has requested a NAFTA trade panel review a U.S.… Continue reading

B.C. premier apologizes for removal of 1950s totem pole at Canada-U.S. border

SURREY, B.C. — Three First Nations in British Columbia gathered today to… Continue reading

Tail with a happy ending: Dog rescued from fighting ring, ready for police work

Dallas’s ear-to-ear grin and bright brown eyes seem to sparkle with joy.… Continue reading

Liberal leader doubles down on notion that $75 weekly grocery bill is possible

MONTREAL — One day after being ridiculed for saying it was possible… Continue reading

Jury resumes deliberating man’s guilt in Calgary mother of four’s death

CALGARY — Jurors are continuing to deliberate the guilt of a man… Continue reading

Ontario finance minister projects $15B deficit for province

TORONTO — Ontario’s finance minister said the province will have to make… Continue reading

Most Read