Homes posh arouse the suspicions of Revenue Canada

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A house valued at three million of dollars owned by a person who has declared annual income of $ 50,000 will light a red indicator light says it is behind the scenes.

The lords urban find themselves under the magnifying glass of the tax department. For the first time in its history, the Canada revenue Agency (CRA) has decided to target not the taxpayers or behaviors, but geographic location as the criterion to trigger an investigation. And these geographic locations will be those where stand the homes of the most affluent in the country.

 

For his ” Project zip Code “, the ARC chose a “neighborhood wealthy” in each of the five regions of the country : the west coast, the Prairies, Ontario, Quebec and the atlantic provinces. The tax investigators will check the value of each of the houses of these neighborhoods and compare to the income declared by its owners.

 

Project zip Code

 

A house valued at three million of dollars owned by a person who has declared annual income of $ 50,000 will light a red indicator light says it is behind the scenes.

 

“The Project postal Code demonstrates that the CRA uses various intelligence sources to identify taxpayers who may attempt to hide income and assets in order to avoid paying the taxes due,” writes the note of information provided by the Agency.

 

This note also states that the Agency already conducts audits ” mode of life “, that is to say, ” when the mode of life of an individual or its assets are not representative of his declared income “.

 

Deter tax evasion

 

The CRA refuses to divulge the exact location of its audits of geography. At most we know is that, for the choose, it has used internal information, information from third parties as well as government data, ” which are indicators of wealth “.

 

Only the survey in the enclave of ontario began. It aims 1150 taxpayers. To date, the CRA has sent a letter to 33 of them for their request ” more information “, explains the spokesperson of the Agency, Patrick Samson.

 

The survey in the other four districts is expected to start soon or after the New Year.

 

“It’s part of the means which it uses to counter tax evasion,” explained the minister of Revenue, Diane Lebouthillier, who is well-defended so launch a ” hunt the rich “.

 

“Not at all. Our policy is very clear : everyone must pay their fair share. “

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