Tax Evasion - Canada Ishtyle
Recently Revenue Canada known as Canada Revenue Agency (CRA) unearthed a massive tax evasion case.
Three construction companies funnelled huge money to two "dummy" corporations that have no commercial activity and that were used as part of a false invoicing scheme. This type of scheme allows individuals or companies to obtain invoices from, generally, an inactive company for fictitious work. The invoices are then used to fraudulently reduce the individuals' or companies' revenues. The resulting tax savings are shared by the scheme's participants to use as pay offs or for personal gain.
The government investigated the matter, and suspected that one of its officials had worked behind the scenes to protect the inactive numbered company. Search warrants were executed against four CRA employees and these employees were suspended without pay for the duration of the CRA internal investigation.
The fraud was so massive that it was announced at a press conference by Jean-Pierre Blackburn, Minister of National Revenue. The Minister said, “The CRA actively pursues tax evaders to maintain public confidence in the integrity of the tax system. The Government is committed to protecting Canada's tax base and continues to take action against the underground economy, which appears to be more active in certain sectors.”
Is the CRA a corrupt body? The Minister does not think so and said,” The CRA has approximately 45,000 professionals across the country and is recognized and respected for its strong administration. Controversies involving one or more employees do not reflect the honesty and integrity of the thousands of CRA employees who conduct themselves in an exemplary fashion.”
Now the amount alleged to have been funnelled off which called for comments from the Minister himself – close to 4.5 million dollars amounting to about 18 Crores of rupees. And these are only charges – not yet proven. In India not even a Chief Commissioner would bother with such petty cases.