CRA Asking Suppliers for Names of Building Contractors for Unreported Income Audit
As part of its focus on the underground economy building contactors are a tax audit target of CRA. Recently CRA has approached hardware stores and building supply chains and asked them for details of customers who have enrolled in their contractor programs. Rona Hardware is fighting the CRA requests, but reports say that at least 20 other stores have submitted client details to CRA. CRA has already carried out tax audits of almost 6600 contractors and found 1277 who had failed to file a tax return at least once between 2008 to 2012. Building contractors who have unreported income can submit a CRA voluntary disclosure (VDP or tax amnesty) to avoid tax evasion prosecution and eliminate civil tax penalties.
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."