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Offshore Tax Informant Program (“OTIP”)
You may recall that Canada Revenue Agency (“CRA”) has established a program to encourage people to provide specific and credible details about major international tax non-compliance, provided that the information leads to the assessment and collection of additional Federal taxes.
The reward provided to the informant is between 5% and 15% of the Federal tax collected, excluding the interest and penalties. Of course, any “reward” received by an informant is taxable in the year of receipt.
This program is significant to CRA and it is presently considering over 100 cases that will be potentially eligible for participation in OTIP.
Please contact Ainsley Furlonger, Linda Smits or Keith Trussler if you wish to discuss this matter further.