$50/day fine for not co-operating with CRA
Champagne proposes changes to Income Tax Act
Tax filers face $50 a day fines and mandatory oaths under threat of perjury for failing to cooperate with the Canada Revenue Agency, Blacklock’s Reporter writes on August 18th.
“Finance Minister François-Philippe Champagne outlined the proposals Friday in draft amendments to the Income Tax Act,” note Blacklock’s.
‘These proposed amendments are intended to enhance the efficiency and effectiveness of tax audits and facilitate the collection of tax revenues on a timelier basis,’ Blacklock’s quotes a finance department notice. “The legislation is expected to be tabled once Parliament returns from its summer recess September 15.”
New provisions would allow the Revenue Agency to compel tax filers to swear an oath under threat of perjury when submitting information. Taxpayers who knowingly mislead auditors are already subject to 50 percent penalties for gross negligence.
Amendments would also “allow the Revenue Agency to issue a new type of notice, referred to as a Notice Of Non-Compliance, to a person who has not complied with a requirement or notice to provide assistance or information issued by the Agency,” said the department. The new law would “impose a penalty on a person who has been issued a Notice Of Non-Compliance of $50 for each day the notice is outstanding to a maximum of $25,000,” it said.
