A recent article reported that CRA is reviewing every electronic fund transfer over $10,000 from Canada to four foreign jurisdictions per year. The first two targets were the Isle of Man and the Island of Guernsey, with two more undisclosed jurisdictions to be reviewed by March 31, 2017. CRA has started audits of 166 high-risk taxpayers and sent over 1,000 “nudge” letters to lower risk taxpayers. For 2017-2018, CRA plans on reviewing about 100,000 fund transfers to four other undisclosed jurisdictions.
The article also noted that the Offshore Tax Informant Program received over 3,000 tips as of October 31, resulting in almost 200 audits and 124 active files under review.
In addition to these activities, a November 14, 2016 Huffington Post article indicated CRA identified 2,600 documents with a Canadian link, opened 85 investigations into Canadians, and has commenced 60 audits with respect to the Panama Papers.
If transferring funds offshore, retain appropriate documentation in case of CRA review.
Tax season ended a couple of weeks ago, and we’re catching up on everything, including social media! We hope to get back into blogging and tweeting regularly again soon.
We are also proud to announce that for a third consecutive year we were chosen Favourite Accountant by the readers of Burnabynow newspaper in the Best of Burnaby 2017 issue! Thank you again, Burnaby!
The team at PEL would like to wish you and your families a very Happy Holidays and all the best for 2017.
Our office will be closing for the holidays at 5:00pm on Friday, December 23 and will remain closed through January 2. We will reopen for regular business hours on Tuesday, January 3.
If you expect to have any pressing matters during the time our office will be closed, please contact us before we close so we can make arrangements to assist you.
Supporting documents for your tax return should be retained for at least six years after the end of the year to which it relates. But this assumes that you have been filing on time – if you are six years late in filing, you should not destroy your supporting documents immediately after filing! If CRA requests to examine them and they are not available at the time of examination, the amounts claimed will likely be disallowed. Keep them for six years after the related return has been assessed.