How Tax Fraud Differs From Tax Evasion 2022 | Fraud Lawyer Toronto

Tax fraud and tax evasion charges in Canada are treated with considerable severity.  Recent studies estimate that the CRA (Canada Revenue Agency) misses out on over $50 billion in unpaid taxes every year. Alarming still is the fact that this estimate does not include offshore tax fraud.

If you are facing tax fraud or tax evasion charges in Toronto, or if you are anxious that you may be reported for tax fraud, we strongly recommend that you contact an affordable criminal defence lawyer before you make your next move.

Is Tax Fraud the Same as Tax Evasion?

Tax fraud and tax evasion are two sides of the same coin, but they aren’t synonymous or interchangeable. Tax avoidance, on the other hand, is more of a legal loophole.

What is Tax Fraud?

If you knowingly provide false information on your tax return, you may be guilty of tax fraud. Tax fraud can occur when a taxpayer:

– overstates their expenditures

– neglects to mention their total earnings

– neglects to file a tax return

– claims to reside in one province while actually living somewhere else

This is characterized by a deliberate and knowing misrepresentation in order to pay less tax than is actually owed.

What is Tax Evasion?

Many taxpayers reduce the amount of tax owed through legal means, something that is totally acceptable as far as the CRA is concerned.  However, if a taxpayer uses deceitful tactics to conceal or understate their income, or claim deductions that they are not entitled to, then he/she may be guilty of tax evasion.

Legal Ramifications of Tax Fraud and Tax Evasion

Some of the most burning questions pertaining to tax fraud are, “Can you go to jail for tax fraud or tax evasion in Canada?” and “What is the penalty for tax fraud or tax evasion?”

If you are convicted of tax fraud or tax evasion in Canada, you may be subject to court-ordered fines and jail time, both of which will be reflected on your permanent criminal record.

Facing Tax Fraud Charges?

Objecting to a CRA Audit is Time-Sensitive. You Only Have 90 Days to Act on an Appeal!

Tax fraud cases usually involve a large volume of financial documentation that should be carefully assessed. Contact John Erickson; an experienced and qualified criminal defence lawyer in Toronto who has 20 years of experience defending individuals charged with tax evasion.