The Canada Revenue Agency (CRA) has been revealed to have failed to detect a scam that resulted in the loss of tens of millions of dollars to scammers. The fraudsters exploited a new tax credit scheme meant for Ontario businesses by using fake businesses to claim tax credits for commercial facility renovations and constructions.
The Canada Revenue Agency is being hit again with revelations it failed to detect a scam, one so obvious that, according to insiders, a simple Google or corporate registry search would have prevented it. But this time there’s a twist.The Canada Revenue Agency has lost hundreds of millions of dollars to various scams in recent years, including one that took advantage of a new tax credit offered to Ontario businesses.
In order to "preserve the integrity of the tax system," the agency said in a statement, it "does not release specific information related to our monitoring strategies that could jeopardize our efforts." "Ontario and CRA work together to address non-compliance and implement proactive measures to minimize fraud in the tax credits," Blodgett stated.
"Given the high-risk claims detected to date were linked to fictitious or illegitimate businesses, collection was unlikely to be successful," one memo stated, according to sources./Radio-Canada has learned that the CRA realized that no department at the agency was assigned the job of validating the claims and that it did not request even basic information from the applicants to assess any risk.
Bibeau and agency officials have vowed to go after any whistleblowers who may have spoken to the media about how the CRA has been losing hundreds of millions of taxpayer dollars to scammers. Bibeau has said that anyone who breached their obligation of confidentiality could face jail time.
CANADA REVENUE AGENCY SCAM TAX CREDIT ONTARIO FRAUD
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