True North- CRA alleges it was defrauded out of $37 million through telecom “carousel scheme”
Certain companies involved with Gold Line’s supply chain were already the subject of fraud accusations last year, where the CRA admitted to paying out over $63 million in what the agency now calls “illegitimate” tax refunds.
The CRA now claims to have wrongly distributed $100 million in fraudulent payment since last year to carousel schemes, also known as “missing trader fraud.”
our fine civil servants at work
remember in the early days of GST, a guy made up a construction company and applied for rebates in the millions , no accountability in the rebate department .
I heard of another guy that would gather up bar tabs and restaurant checks that patrons left behind. He claimed ITCs for the GST reported on each document. Apparently, his scam also went into the millions.
Uncannily reminiscent of Brian Eno, “Baby’s On Fire”: “Juanita and Juan, very clever with maracas, are making a fortune selling secondhand tobaccos. Juan dances at Chico’s, and when the clients are evicted, he empties the ashtrays and pockets all that he’s collected.” How life imitates art.
https://www.youtube.com/watch?v=nItuhuY1U04
i think he spent it all on hookers so never a penny recovered .
but did flow into the low income sector of the economy
I don’t think there is any real desire on the part of CRA to actually go after these types of tax fraud. Similar things have been going on since the inception of the GST. Back in 1992, I saw a similar scam, where a person opened a used car lot and claimed the GST on cars he hadn’t purchased, as input tax credits. Shortly thereafter, he declared bankruptcy after cashing the cheques from CRA.
I’ve always wondered why the CRA doesn’t immediately audit any firm that claims more GST back than they charged, because that’s not how the GST is supposed to work.
There are probably a few exceptions (you sell a product that is GST exempt for example), but “long distance minutes” shouldn’t be one of them, and not to the tune of $37 million.
expect the same from the carbon tax .
Follow the money.
For sure there is absolutely no connection,none at all, between the Scammers and the Revenue service personnel..not investigating these scams..
Yet we are threatened with imprisonment should we refuse to pay our taxes..
Extortion only goes one way?
Bit like that stunningly stupid “Anti Bullying Pink Shirt” crap.
If our lying politicians really wanted to stop bullying..They would make paying tax voluntary..
The Party of Retribution holds with ongoing audits of every minion of the state,with the clawback of every penny plus penalties.
They don’t want the spotlight on their incompetence so they go after us peons.