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CRA Provides OTIP Update

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The CRA’s Offshore Tax Informant Program (OTIP) was launched in January 2014.

From the CRA’s webpage describing the program:

Launched as part of the Canada Revenue Agency’s (CRA) efforts to fight international tax evasion and aggressive tax avoidance, the new Offshore Tax Informant Program (OTIP) allows the CRA to make financial awards to individuals who provide information related to major international tax non-compliance that leads to the collection of taxes owing …

… To be eligible under the OTIP, individuals must provide the CRA with specific and credible details of major international tax non-compliance that lead to additional taxes being assessed and collected. When program requirements are met, the CRA may enter into a contract with the individual that could lead to an award if the potential additional assessment of federal tax, excluding interest and penalties, is more than $100,000.

Any individual, no matter where they are in the world, is eligible to participate as an informant, subject to certain limitations …

At a recent STEP conference roundtable, the CRA stated that, from January 2014 to April 2016, the CRA had received 2,984 calls (812 of which were from potential informants) and 333 written submissions. The CRA also said that it has entered into over a dozen contracts with informants.

The CRA’s report on the volume of OTIP calls and the recent media focus on the Panama Papers are reminders for any non-compliant Canadian taxpayers that they may wish to consider contacting a tax professional and using the Voluntary Disclosure Program to correct any non-compliance regarding offshore assets and/or unreported income.

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