Thursday, July 13, 2017

‘Carousel’ tax fraud scheme took millions: CRA

The Canadian government has revealed that it was the victim of a multimillion-dollar swindle known as a “carousel scheme” that is based on fraudulent sales tax refunds. The Canada Revenue Agency has identified $52-million in fraudulent requests for sales tax refunds and rebates over a five-year period. According to the CRA, 11 people based in Britain orchestrated the “tax fraud and money laundering scheme.”

The CRA launched a crackdown on Tuesday, conducting a series of raids in three locations in Canada and six others in Britain. Dozens of corporations were allegedly created in both countries to perpetrate the fraud.
The CRA has convicted 508 taxpayers of tax evasion between 2011 and 2016, resulting in $40-million in fines and 244 years in jail sentences. The 2016 federal budget included $444.4-million over five years to help the agency crack down on wealthy tax cheats.