Whistle Blower Payments

March 21, 2013

Budget provides for whistle blower payments when a person discloses information
to the CRA that results in collected reassessments in excess of $100,000 where
the reassessments relate to non-Canadian property or transactions. The reward payment is to be 15% of the tax

While this program is
no doubt based on similar programs from other countries aimed primarily at
undisclosed offshore bank accounts, it may be applicable to some charitable
donation tax shelters. Many charitable
donation tax shelters involved property that was said to have been obtained
from an offshore trust prior to being donated or that was said to have been ultimately
used in some alleged non-Canadian charitable activity. To the extent that someone with inside knowledge
of such a shelter is prepared to disclose shelter details to the CRA, it may be
possible for that person to obtain very substantial whistle blower awards,
given the large volume of reassessments in some donation shelters. However, experience in other countries
suggests that tax officials are not always very keen on paying whistle blowers,
particularly ones with involvement in offensive transactions. As a result, anyone contemplating tax whistle
blower action should get specific legal advice.


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