Canadian Government

Snitches with tips

Published On January 16, 2014 | By Joseph (Ken) | Government, Personal tax


Tax cheats whistleblower hotline up and running

“Ten months after it was first trumpeted in the budget, the Conservative government announced Wednesday its whistleblower hotline to crack down on tax cheats is finally operational.”

And there was much rejoicing… 

“The whistleblower program — now dubbed the Offshore Tax Informant Program (OTIP) — will pay cash rewards to snitches with tips on international tax evasion.”

I’m not attempting to express an opinion, I just like how it sounds “snitches with tips”.

“The CRA will enter into a contract with tipsters and pay them between five and 15 per cent of the federal tax collected for quality information leading to tax assessments and collection of more than $100,000 in additional federal taxes.”

Leave it to the government to make even snitching a chore.

“The minister and CRA officials acknowledged, though, it could take “several years” for tipsters to receive their rewards, which will only be paid out after the debt is collected and “all recourse rights” have expired or been waived by the taxpayer.”

If it’s any consolation, the tipster gets to watch the individual they reported get what we call in the accounting biz a “tax enema”.

“Findlay said the program will be a “critical tool” for recovering taxpayer dollars that would otherwise be lost to tax cheats.”

“Unpaid taxes, of course, mean less money for programs that all Canadians depend on, including health care, education and defence, just to name a few,” she added.

Funny, they seem very concerned with recovering those “taxpayer dollars” lost to tax cheats and yet they aren’t concerned about the 3.1 billion of taxpayer dollars they “lost”.

How many programs “that all Canadians depend on, including health care, education and defence” would 3.1 billion have paid for?!?!

“It was a key promise by the federal Conservatives to help crack down on the growing problem of international tax evasion.”

So the federal Conservatives key solution to international tax evasion is a snitch line…?

Who do they think would be privy to information about international tax evasion? It’s not like people talk about tax evasion in mixed company. That leaves either professionals who are involved or family/friends. 

“The tipster hotline, 1-855-345-9042, was opened Wednesday and is ready for calls.”

“Findlay said she’s confident the agency has the resources necessary to support the tipster line and potentially a large volume of calls, despite the CRA cutting $313 million annually and more than 3,100 full-time positions by 2017-18.”


The whistleblower reward payments will be subject to income tax, so tipsters will still have to pay the CRA at the same time the tax collection agency pays them for their information.”

Of course they will be.

Last but not least, “Individuals convicted of tax evasion in connection with the non-compliance will not be eligible to collect rewards.”

Which of the next two pics do you think better expresses that last statement?

warning warning


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About The Author

Joseph (Ken)
(Ken) is a Registered Public Accountant with over 25 years of public practice experience in the accounting profession. Ken specializes in accounting information systems, taxation and financial reporting.

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