Mr. Speaker, with regard to (a), Section 241 of the Income Tax Act precludes the Canada Revenue Agency, the CRA, from providing taxpayer-specific information or information that would identify specific taxpayers; therefore, the CRA will not comment on an investigation that it may or may not be undertaking.
With regard to (b), on an ongoing basis, the CRA provides information to Canadians on tax matters, including warnings to beware of groups or individuals who conspire, counsel, and promote tax avoidance schemes. The CRA continues to issue substantial public warnings about tax schemes and inform Canadians about how to protect themselves from fraud through tax alerts, news releases, and fact sheets–all of which can be found on the CRA website--as well as through outreach and partnerships with stakeholders.
Information on these schemes and how to identify and avoid them is readily available to anyone seeking it. Through these various media the CRA also informs Canadians about the consequences of participating in and promoting various schemes, how to report participation in a scheme they become aware of, and how to come forward using the voluntary disclosures program to correct past tax mistakes before criminal and financial consequences occur.
When a conviction related to an illegal tax avoidance scheme occurs, the CRA issues a regional conviction news release to inform the Canadian public in order to help others who may have unknowingly participated in similar schemes and to deter others from participating. More information on convictions that have occurred within the last year is available on the CRA website.
Under certain circumstances, including when it may provide a more timely warning of ongoing schemes, the CRA issues news releases when charges are laid. The CRA has also provided interviews to the media to inform the Canadian public about participating in tax schemes, including the risks and costs they could incur and how to identify them and avoid taking part.
Specifically to warn taxpayers of schemes and fraud, in 2006 the CRA created tax alerts—a warning issued to the media, posted to the CRA website, and issued through an e-mail list and RSS feed. Some tax alerts have made specific reference to schemes involving fictitious business losses, while others have been broader, encompassing a call to action to seek independent advice from a trusted tax professional before becoming involved in a scheme or arrangement. Many of these alerts have reminded Canadians that if it looks too good to be true, it probably is.
The CRA also collaborates with the Competition Bureau and the RCMP in its yearly promotion of Fraud Prevention Month. The CRA issues a yearly fraud prevention news release that reminds Canadians to protect themselves and leads them to the CRA’s website, where a comprehensive web resource provides them with further details. Other products such as fact sheets and checklists on how Canadians can protect themselves have accompanied those releases.
In addition to the yearly Fraud Prevention Month promotion, the CRA has also issued several other warnings about fraud or schemes. These have been distributed using News Canada articles, news releases, and tax tips during income tax filing season, and through the CRA’s Twitter feed, which prominently features tweets on schemes, scams, and fraud. Regardless of the exact nature of the warning, web links to information on a variety of schemes and fraud are provided. Promoting those resources helps visitors learn about how to protect themselves on a variety of fronts.
With regard to parts (c) through (i), the CRA routinely audits questionable business losses. The CRA does not track information by specific tax scheme, such as DSC and Fiscal Arbitrators. Furthermore, section 241 of the Income Tax Act precludes the CRA from providing taxpayer-specific information or information that would identify specific taxpayers.