Whistle Blower Payments

March 21, 2013

The
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
collected.

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.

Disclaimer

This publication is provided as an information service and may include items reported from other sources. We do not warrant its accuracy. This information is not meant as legal opinion or advice.

Miller Thomson LLP uses your contact information to send you information electronically on legal topics, seminars, and firm events that may be of interest to you. If you have any questions about our information practices or obligations under Canada's anti-spam laws, please contact us at privacy@millerthomson.com.

© 2021 Miller Thomson LLP. This publication may be reproduced and distributed in its entirety provided no alterations are made to the form or content. Any other form of reproduction or distribution requires the prior written consent of Miller Thomson LLP which may be requested by contacting newsletters@millerthomson.com.