Mr. Speaker, during a study of tax evasion and the use of tax havens at the February 5, 2013, meeting of the House of Commons Standing Committee on Finance, the following question was put:
“I understand Project Jade was the ability of the CRA to go after those who came out of the Liechtenstein tax evasion situation in 2008. Apparently, 106 Canadians were involved. It was expected that millions of dollars in back taxes and penalties would result. Could you update us on what happened with respect to that?”
This question prompted the reply cited in written question Q-164.
Through its objection process, the CRA provides a fair and impartial administrative process for resolving disputes between taxpayers and the CRA. Filing a notice of objection is the first step in the process of resolving a dispute between a taxpayer and the CRA. If a taxpayer does not agree with the CRA’s decision resulting from a notice of objection, a further appeal can be brought to the Tax Court of Canada, the TCC. The TCC is an independent court of law that regularly conducts hearings in major centres across Canada.
With regard to parts (a) and (b), members should please note that the stated amount of “roughly $14 million” refers to matters being considered under dispute resolution processes, which include cases under the objection process as well as cases before the court.
With respect to Project Jade, as of December 4, 2013--i.e., the date of the question--eleven taxpayers have filed objections with the CRA, i.e., its administrative process. Of these, the CRA has reviewed and resolved the objections of ten taxpayers. The objections of one taxpayer are currently under review.
With respect to the appeal process, as of December 4, 201--i.e., the date of the question--one taxpayer has filed an appeal with the court.
With regard to (c), it is possible for taxpayers to each file more than one objection. For example, one could be filed for each tax year assessed. For the eleven taxpayers referred to in part (b), 19 objections in all were filed between May 2009 and March 2013.
With respect to appeals before the court, court records are a matter of public record and are available for consultation by the public. However, confidentiality provisions of the Income Tax Act limit the information the CRA can provide when the release of that information might lead, either directly or indirectly, to the identification of a taxpayer. With respect to the appeal in court mentioned in part (b), providing the exact date the appeal was filed could indirectly lead to the identification of the taxpayer involved with Project Jade; therefore, the CRA is unable to respond in the manner requested.
With regard to part (d), the objections referred to in parts (b) and (c) were filed with the CRA.
The appeal referred to in parts (b) and (c) was filed with the Tax Court of Canada, the TCC. The date the taxpayer’s appeal will be heard will be determined by the TCC in due time.