Canadian Tax Abuse Concerns Rise After Agency Audit Cutbacks

July 23, 2021, 8:54 PM

Canada’s tax agency cut back extensively on performing audits during the pandemic, triggering concerns the country is at a heightened risk of tax evasion and avoidance.

The Canada Revenue Agency shifted its mission and some personnel in March 2020 toward delivering economic relief programs, and saw its fiscal impact, a measure of the auditing work it performs, drop 10% in fiscal 2021 compared with previous years, spokespeople for the agency said.

Tax practitioners say the loss of auditors has made working with the agency cumbersome and greatly increased the risk people will take to try skirting taxes.

The agency defends ...

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