XPost: can.politics, bc.politics, ab.politics   
   XPost: ont.politics   
   From: "@nyet.ca   
      
   Isn't it wonderful that the Harper government has turned Canadians into   
   rats on fellow Canadians?   
      
   Too bad Revenue Canada is not capable of doing its own dirty work.   
      
   But then, Harper's huge cutbacks in that ministry wouldn't have had an   
   impact on them being able to find their own tax dodgers, would it?   
      
   If you plan to get involved to make a few bucks, be sure to have your   
   own lawyer ready to deal with Canada Revenue.   
      
   ___________________________________________________   
   The Canadian Press Posted: Jul 13, 2014   
      
   Revenue Canada's offshore tax cheat snitch line flooded with calls   
   Cash reward system gives tipsters up to 15 per cent of the amount in   
   taxes collected   
      
      
   The Canada Revenue Agency has 80 new leads on taxpayers who may be   
   hiding money offshore after getting hundreds of calls on its new snitch   
   line.   
      
   The flush of information has even the agency's harshest critics   
   acknowledging the initial success of the hotline, established Jan. 15 to   
   help ferret out billions of dollars stashed overseas.   
      
   The so-called OTIP line — for Offshore Tax Informant Program — was   
   promised in the March 2013 budget but took 10 months to set up.   
      
   As of May 31, more than 800 people rang the number, drawn by a cash   
   reward system that gives the tipster up to 15 per cent of the amount in   
   taxes that the agency eventually collects.   
      
   Only 251 of those calls were actual informants, and only 100 went to the   
   next required step, filing a written submission identifying themselves   
   and providing detailed information on the alleged overseas tax evasion.   
      
   The agency closed 20 of those written files as dead ends, but is   
   pursuing the remainder.   
      
   Details of the program's first few months were obtained under the Access   
   to Information Act, supplemented by information provided directly by the   
   Canada Revenue Agency.   
   Revenue Minster Findlay   
      
   Revenue Minister Kerry-Lynne Findlay hopes the tax-tip hotline will   
   allow the government to go after people who hide income in foreign accounts.   
      
   "I've been surprised, pleasantly surprised," said Jonathan Garbutt, a   
   Toronto tax lawyer who has been a vocal critic of the way the program   
   was established.   
      
   "I'm not ... as pessimistic as I was," he said in an interview, adding   
   that at least two of the tipsters have become his clients, and other   
   potential offshore whistleblowers are consulting him.   
      
   The program is modelled on a U.S. counterpart that is much more   
   generous, offering rewards as high as 30 per cent, for example. The   
   Internal Revenue Service paid out US $104 million to one snitch after   
   collecting $5 billion in back taxes from Swiss banks.   
      
   The Canadian program pays between five and 15 per cent only if the CRA   
   successfully collects more than $100,000 in taxes owed, and the tipster   
   must pay income tax on the reward. Some classes of informants are   
   excluded, including most public servants or criminals.   
      
   The snitch must also reveal his or her identity, unlike another snitch   
   line at the CRA, which is focused on domestic tax fraud and pays no rewards.   
      
   Sen. Percy Downe, long a critic of the agency's efforts to collect on   
   money hidden offshore, said he welcomes the initiative.   
      
   "I'm glad it's finally up and running," he said in an interview from   
   Charlottetown.   
   CRA job cuts raise doubts   
      
   But the reward level should match the American program, he said, and   
   massive job cuts at the CRA raise doubts about whether it can properly   
   pursue the leads.   
      
   "The department fails to put the resources into fighting overseas tax   
   evasion and this is another example of it, rather than doing 30 per cent   
   (rewards) they're doing 15 per cent."   
      
   Garbutt also praised the American system, which generally requires   
   tipsters to have legal counsel to help the IRS winnow out the soft   
   leads. "They only see wheat, they don't see chaff," he said.   
      
   Garbutt also raised questions about diminishing resources at the agency,   
   which has shed more than 2,500 jobs in recent years.   
      
   "They don't seem to be overwhelmed yet, but I think they could probably   
   get there pretty quick."   
      
   The snitch program, with an annual budget of about $700,000, has not   
   paid out any rewards to date.   
      
   "It may take several years from the date of entering into a contract   
   with the CRA until the additional federal tax is assessed," said agency   
   spokesman Philippe Brideau.   
      
   "The CRA believes this is a good start to the program. ... The early   
   call and submission statistics indicate that there is interest on the   
   part of informants to participate in this program."   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)