Tax Tips and Pits: Cash for tax squealers is no joke

The gov't has announced it will pay cash to people who inform on people who cheat on their taxes in excess of $100,000.

If you want to make some money – some serious money – Canada Revenue Agency (CRA) has a job for you.

The government has announced it will pay cash rewards to people who inform CRA about individuals in non-compliance with Canada’s international tax regulations (read: tax evasion) that leads to a conviction.

The recovered tax revenue must exceed $100,000 in order to qualify for the reward program and yield a payout. CRA will then pay 15 per cent of monies collected.

What’s 15 per cent of a million bucks, or 10 million bucks?

Remember, it’s likely wise to report your reward payment from CRA as “other” income on your personal tax return.

Now, what about the clandestine world beyond white collar tax crime? …

How about a taxpayer who earns income from illegal means like the sale of contraband or drugs? For whatever reason, and there are some legitimate reasons, if a taxpayer were to file a personal tax return and claim income earned from criminal activity, you likely would think, “now that’s silly”. Law enforcement will be informed and the legal system will proceed as it should, but this would not necessarily be the case.

That’s right.  Not necessarily.

The Income Tax Act prohibits disclosure of any “taxpayer information” by any “official … of a government entity”.

However, if criminal proceedings have commenced on a person, the Act does permit the disclosure of that taxpayer’s information. The question is, how easy would it be for CRA to determine if criminal proceedings are underway without actually identifying the taxpayer to police?

And of course, if a criminal is living in obscurity and therefore nowhere near the police radar, it’s conceivable that the income and expenses associated with illegal activity could be “safely” claimed on a T1 personal tax return and the taxpayer receive the low income earner GST tax credit, among other credits, for example.

Good for at least an April Fool’s Day smile?

Ron Clarke has his MBA and is a business owner in Trail, providing accounting and tax services. Email him at To read previous Tax Tips & Pits columns visit

Just Posted

Trail military exercises provide crucial training

Exercise Sapper Crucible: ‘The nuts and bolts of what a soldier is’

Last stand for Silver City summer

Fall officially arrives in Trail at 6:54 p.m. on Saturday

Tell the Times

Web Poll: Will you be attending a candidates forum in the Trail area?

More parking meters vandalized in downtown Trail

City of Trail: The parking meters parts budget had been overspent by $26,000 at the end of July

Trail councillors will all be acclaimed

One Trail candidate has withdrawn, leaving six remaining candidates to fill the six council seats

VIDEO: Neighbours fear impact of B.C. tent city residents

Greater Victoria residents opposed to campers voice concerns at provincial campground

B.C. woman with autism has scooter stolen from SkyTrain station

Kayla Polege purchased scooter after ‘shutdowns’ on transit

Off Nova Scotia, a bid to ‘unravel the mystery’ of great white sharks

The question: Is Nova Scotia the second mating site for Atlantic white sharks, something scientists say could be key to protecting the endangered species.

Man arrested after carjacking, collision, pepper spray attacks in Vancouver

Vancouver police say one man is in custody after a chaotic scene of events in the downtown core

Canadian investigator says World Anti-Doping Agency got a bad deal from Russia

A Canadian lawyer says the World Anti-Doping Agency rushed into accepting a bad deal by reinstating the country’s drug-testing program.

Fashion Fridays: Rock some animal print

Kim XO, lets you in on the latest fall fashion trends on Fashion Fridays on the Black Press Media Network

New evacuations ordered because of Florence flooding

Emergency managers on Friday ordered about 500 people to flee homes along the Lynches River

B.C. doctor weighs in on the kid ‘screen time’ debate

A Maple Ridge mother opens up about her children’s use of tablets, smartphones and television

Most Read