Canadian PM Harper speaks at the Museum
Canadian Prime Minister Stephen Harper speaks at the Museum REUTERS

Canada Revenue Agency (CRS) is facing downsizing and shut down of some units for international tax evasion. This is said to be an exercise in creating a focused team after the Conservative government enforced a budget freeze. The Globe and Mail reported that the shakeup will see 50 senior managers responsible for international files getting axed. It accessed an internal memo that contradicted the government's public claims that the CRA will not be reducing the number of auditors and anti-tax evasion experts.

Saving Tax Cheats

The move has raised concerns in the CRA that the government is backtracking from its crackdown on offshore tax cheats. In the Federal budgets of 2013 and 2014, pledges were made to increase enforcement in this area. But the new move will result veteran staff who know the intricacies of offshore tax schemes getting axed out, forcing them to take up jobs in the private sector and offer the professional knowledge to help clients on how to reduce their tax bill.

Says Liberal Senator Percy Downe, focused on the CRA's offshore tax evasion efforts, said it will lead to losing highly qualified individuals and they will advise private clients how to dodge the CRA scrutiny. However, the CRA spokesperson Phillippe Brideau said the reductions will not lead to any scaling down of auditor positions. The realignment will only lead to an increase in the number of auditors, he claimed.

More Reforms

Meanwhile, the Canada Revenue Agency will be seeing internal reforms to make the agency flawless. There is a plan to introduce a self-snitch line to check internal fraud and corruption among the staffers, reported The Star. In the recent past, The CRA faced many allegations that were at variance with its organisation's goals. A series of cases involving internal fraud and lapse of integrity had overshadowed CRS reputation. To mitigate the threat, the CRA wants to enforce measures that will safeguard the assets, resources, information and reputation from fraudulent activity or inappropriate conduct of its employees.

Since 2008, eight former Canada Revenue Agency officials were arrested under an investigation code named Project Coche. Early in 2014, three Canada Revenue Agency employees were caught on charges of bribery, conspiracy, breach of trust and fraud against the government.