Revenue minister commits $30M to find tax evaders

A commitment of $30 million to fight tax evasion and to target the practice ofhidingmoney in offshore accounts has been announced by Revenue Minister Gail Shea and her cabinet colleague Maxime Bernier.

Shea said that $15 millionof the resources the government wants to put into fighting tax avoidance is what she called "refocused" Canada Revenue Agency funds. The other $15 million is new money that hadbeen earmarked for chasing down tax evaders in the government's spring budget.

Last month,CBC News reportedthat450 Canadiansare among more than 130,000 people worldwide found to hold accounts in countriesknown to beoffshore tax havens. The revelations werepart of an exclusive worldwide release of offshore financial information, that was first obtained by the Washington-based International Consortium of Investigative Journalists.

After CBC's report, Shea asked for the names of the 450 Canadians using offshore tax havens. Asked by reportersWednesday if her department now has the names, Shea said,"Well we currently dont have the list and I can assure you that were looking at all of our options.Were working with our international partners to get that list."

A 'SWAT' team to catch tax cheaters

Shea also announced the formation of ateam within the CRA, composed of international tax experts, to track down tax avoiders. Bernier referred to it as aSWAT team.

As well, there will be a newrequirement, already announced in the 2013 budget, thatinternational electronic fund transfers over $10,000will now be reportable to CRA.

Another "tool," alsomentioned in Budget 2013, will beareward system forpeople who blow thewhistle on tax evaders. Shea explained thatanyone who tips off the government about an amount of money over $100,000 stashed in an international tax haven will be paid a percentage of that money once it's recovered.

"Some Canadians go to great lengths to avoid paying taxes," Shea said, adding that this is an unfair burden on Canadians who play by the rules.

Last week, theCommons finance committee released its recommendationsfollowing a two-year study on tax havens, urging the government to take more action against those who attempt to evade the Canadian tax system.

The 2013 federal budget in Marchcontained several new measures to fight tax evasion, including the establishment of a "snitch line" to help identify those dodging the authorities. But critics have questioned whether these moves can yield the potential results identified in budget figures.

The opposition has argued thatrecent cuts to Shea's departmentundermine the Canada Revenue Agency's ability to make meaningful progresstowards tax compliance.

"They're cutting $68 million from the CRA's accounts receivable and returns compliance department," said NDP national revenue critic Murray Rankin during question period.

"When are they going to reverse those cuts? when are they going to show real action on tax cheats?" he said.

Shea said Wednesday that the new money from her government will helpbeef up CRA's audit functions.