Tax evasion as a criminal offence

Tax evasion is when you deliberately ignore or break Canada’s tax laws, with the intention of paying less tax. It is illegal under the Income Tax Act. Examples of tax evasion include –

• Not filing tax returns
• False statements on tax returns
• Late filing of tax returns
• Failing to report income
• Inflating expenses

The penalties for tax evasion vary. The CRA will request that you pay any outstanding tax, plus interest. If the allegations are serious, you may also be charged with a criminal offence. If you are found guilty of breaching the Income Tax Act, you could face an additional fine and a jail sentence.

Tax evasion and tax avoidance

Tax evasion is complicated by the peculiarities of the Income Tax Act. While tax avoidance is completely acceptable, dishonest tax reporting crosses the line into evasion. If you were involved in a tax avoidance scheme, the case will turn on whether it amounts to tax evasion.

Is the evidence lawful?

Special rules govern the conduct of investigators when searching and seizing evidence. When we represent you, we will check the lawfulness of the evidence obtained and being used against you. If it was improperly obtained, we will seek to have the evidence struck out. This means it cannot be used to convict you.

Tax evasion lawyer

The lawyers at Mickelson & Whysall have experience with a wide variety of tax offences, from simple summary charges for failing to file, up to more serious allegations of large-scale evasions. It is best to have counsel involved at the early stages to ensure you are properly advised and your interests are protected.

We represent clients at trial and on appeal. If the CRA is investigating you for tax evasion, please contact us at the earliest available opportunity.