Lies on COVID-19 Support Funding Applications Could Result in Charges
Canada Revenue Agency (CRA) is the watchdog for the Canadian Tax System. It is important to take note that if you have not provided them with accurate information when you applied for any of the COVID19 government supports, you could be in trouble down the line.
CRA has very advanced technology that follows your financial activities. If for example you told them that you earned $60,000 per year when you applied for a COVID19 support funding for any of the supports being offered by the Federal Government, but you actually earn $120,000, they will know it. While they may process your support application using the $60,000/year number, they will go back later and check what you filed as your income in the last year in your income tax. If you lied about it, you could be facing fraud charges, as it is against the law to provide false information to the Government of Canada.
CRA has the power to; perform audits, take back money owed, invoke fines and lay serious charges against individuals who break the rules and even imprison offenders.
Canada’s Cash economy, also known as the underground economy, adds up to about 45 billion dollars per year. The Cash economy is when people pay for a product or service with cash and the person receiving the cash never declares it as income on their income tax. As we, as a society, move towards a cashless economy and the use of debit and credit cards become more and more prevalent the Cash economy will eventually disappear. In fact, as the
Baby Boomers cease to exist, so will the use of cash as a means of payment. It is then that the businesses and individuals that have become dependent upon the use of cash to hide their true incomes, will begin to have to answer the questions of the CRA and could be audited back many years and even have charges pressed against them.
Once the dust has settled, CRA will be contacting people for supporting documents to confirm that what they declared when they applied online for COVID19 support funding was accurate.
For those who did not accurately report the information required, they will face the possibility of an audit and even charges. So, if you have not yet applied for any COVID19 support funding from the Canadian Government, but you intend to, make sure that you are declaring your information accurately to avoid problems with CRA in the future.
Should you need help to accurately fill out your forms for the COVID19 Support Funding, please contact our specialists at firstname.lastname@example.org to schedule an appointment.