Related News

Matt Hougan: Bitcoin Could Hit $1 Million by 2036

Matt Hougan: Bitcoin Could Hit $1 Million by 2036

March 11, 2026
PREVIEW | The Canadian Opera Company’s 2025/26 Season Offers Both New And Old Favourites

PREVIEW | The Canadian Opera Company’s 2025/26 Season Offers Both New And Old Favourites

February 25, 2025
Tow truck operators urge drivers to slow down after fatal hit-and-run on 401

Tow truck operators urge drivers to slow down after fatal hit-and-run on 401

December 4, 2025

Browse by Category

  • Canadian news feed
  • Crypto
  • Faith
  • Geothermal
  • Golf news
  • Hockey news
  • Running & fitness
  • Skateboarding
  • Sports & Fitness
  • WeMaple news

Related News

Matt Hougan: Bitcoin Could Hit $1 Million by 2036

Matt Hougan: Bitcoin Could Hit $1 Million by 2036

March 11, 2026
PREVIEW | The Canadian Opera Company’s 2025/26 Season Offers Both New And Old Favourites

PREVIEW | The Canadian Opera Company’s 2025/26 Season Offers Both New And Old Favourites

February 25, 2025
Tow truck operators urge drivers to slow down after fatal hit-and-run on 401

Tow truck operators urge drivers to slow down after fatal hit-and-run on 401

December 4, 2025

Browse by Category

  • Canadian news feed
  • Crypto
  • Faith
  • Geothermal
  • Golf news
  • Hockey news
  • Running & fitness
  • Skateboarding
  • Sports & Fitness
  • WeMaple news
WEMAPLE NEWS - Brand Partnerships
  • Home
  • Canadian news feed
  • Skateboarding
  • Sports & Fitness
    • Golf
    • Hockey
    • Running & fitness
  • Faith
  • Geothermal
  • Crypto
  • WeMaple news
No Result
View All Result
CONTRIBUTE
WEMAPLE NEWS - Brand Partnerships
  • Home
  • Canadian news feed
  • Skateboarding
  • Sports & Fitness
    • Golf
    • Hockey
    • Running & fitness
  • Faith
  • Geothermal
  • Crypto
  • WeMaple news
No Result
View All Result
WEMAPLE NEWS - Brand Partnerships
No Result
View All Result
Home Canadian news feed

Proposed rules aim to stop CRA from paying out more bogus refunds

WeMaple AI by WeMaple AI
November 29, 2024
in Canadian news feed
0
Proposed rules aim to stop CRA from paying out more bogus refunds
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter

When the federal government tabled its 2025 budget last month, it included a proposal that tax fraud experts say is long overdue — if also a belated acknowledgement that the Canada Revenue Agency has been repeatedly duped into paying out untold millions in bogus tax refunds to scammers.

You might also like

Canada Post is planning to end home delivery. Here’s how community mailboxes will work

Tumbler Ridge shooting victim moved out of ICU, father says

Peter Nygard files lawsuit alleging abuse of process, defamation following Winnipeg sex assault prosecution

The proposed legislation would help prevent a type of fraud known as a carousel scheme from succeeding on Canadian soil and comes on the heels of an investigation by the fifth estate that found the federal treasury has repeatedly lost millions of dollars to international crime networks in the past several years.

“Finally, the CRA has faced up and admitted its tax system has a major issue that it knew about many years earlier,” said Mike Cheetham, a British expert on carousel schemes consulted by the fifth estate who has spoken before the U.K. Parliament on the subject. 

“Why they have taken so long to try and correct the system defies belief,” he said. “This was totally preventable from the start and the CRA has a duty to protect the taxpayers’ revenue.” 

The federal government’s proposed legislation in its November budget appears to bring Canadian rules about some taxable commodities in line with European fraud prevention norms.

The proposed legislative fix, known as a reverse charge mechanism, is designed to prevent fraudsters from claiming bogus GST and HST refunds.  

Swindling the System

Carousel schemes involve a series of fake companies working together to make it look as if goods are being sold and resold, with the last company in the chain claiming a refund — even though no tax was paid in the first place.   

The reverse charge mechanism changes the way GST is paid, removing the ability of the scammers to collect a refund.

A source familiar with the CRA told the fifth estate they believe the Canada Revenue Agency has lost hundreds of millions to carousel schemes. 

The source has been granted confidentiality by CBC News because they are not authorized to speak publicly on these matters.

The agency stated in a recent email that it has  “no systematic way” of adding up exactly how much of the public’s money has been wrongly paid out to fraudsters. 

The agency also said, however, that  “more than $1.1 billion had been identified between 2017-18 and 2022-23” involving carousel schemes. It is not clear what “identified” means in this case.

Still, a fully written but unreleased Nov. 8, 2023, CRA media statement obtained though an access to information request shows that officials at the agency set up what they called a “carousel scheme task force” in October 2023, soon after the fifth estate began investigating why the federal treasury was losing hundreds of millions to networks of scammers.

Internal CRA email exchanges show Bob Hamilton, the CRA commissioner, was also consulted as the agency and Department of Finance co-ordinated how to respond to those questions.

On Nov. 9, 2023, the Department of Finance told the fifth estate that it had introduced a reverse charge mechanism in one particular industry prone to carousel schemes — carbon emission trading.

However, department officials did not respond to repeated followup questions about why other industries known for carousel frauds were not also included.

“What is the reason a reverse charge mechanism was not introduced for other industries identified as being prone to carousel fraud schemes, including telecommunications?” the fifth estate asked on Nov. 21, 2023.

Now, two years later, the 2025 federal budget specifically proposes a reverse charge mechanism for “the telecommunications sector.” The changes, according to the budget, will help “prevent carousel fraud.”

Still, sources say CRA officials were well aware of the issue for more than a decade.

In 2017, for example, the CRA advertised that it had partnered with U.K. authorities to take down a network of carousel scheme fraudsters. However, since then it has declined to talk about that case or whether any of the stolen funds were recovered.

The confidential source familiar with the CRA told the fifth estate that “many attempts” were made internally within the agency to have the Finance Department implement a reverse charge mechanism, but that eventually those employees “gave up” after no one would champion those efforts.

A fifth estate investigation revealed two years ago that the agency believed it had been repeatedly duped into paying out bogus refunds for more than a decade — as tranches of taxpayer dollars disappeared overseas to Hong Kong, Dubai and Islamabad.

In a recent email to the fifth estate, the Finance Department said the reverse charge mechanism proposal in the 2025 budget is “one possible tool to address fraud” and that “what may be considered appropriate for one country at a particular time may not necessarily be appropriate for another country.”

“It is expected that this measure would prevent unwarranted refunds from being paid, generating $90 million in federal revenues over four years beginning in 2026-27.”

For its part, the CRA stated in a recent email that it had identified $600 million in fraudulent carousel schemes in the telecommunications sector between 2020-21 and 2023-24.

The confidential source familiar with the CRA told the fifth estate that for the proposed changes to have an impact, the government will need to impose a reverse charge mechanism on numerous other industries prone to carousel fraud, not just telecommunications. 

“While having it now is good, it applies to only one industry and that ship has sailed,” the source said.

The source also said they are not aware of a single criminal investigation into carousel schemes in Canada, and that the CRA needs to move the cases from civil court to be tested in the criminal arena.

According to Cheetham, international crime groups targeted the weaknesses in the Canadian tax system after European governments moved more quickly to implement the reverse charge mechanism and other legislative deterrents.

“The solution is to go after the criminals very fast, very hard,” said Cheetham. “Why has that not been done [in Canada]?

Read Entire Article
Tags: Canada NewsCBC.ca
Share30Tweet19
WeMaple AI

WeMaple AI

Recommended For You

Canada Post is planning to end home delivery. Here’s how community mailboxes will work

by WeMaple AI
April 1, 2026
0
Canada Post is planning to end home delivery. Here’s how community mailboxes will work

If your dog goes crazy every time the mail delivery person shows up at your door, you may be relieved to know that it soon may no longer...

Read more

Tumbler Ridge shooting victim moved out of ICU, father says

by WeMaple AI
April 1, 2026
0
Tumbler Ridge shooting victim moved out of ICU, father says

The father of Tumbler Ridge, BC, mass shooting victim Maya Gebala says his daughter has been transferred out of intensive care into a "recovery and rehab-focused unit"David Gebala said...

Read more

Peter Nygard files lawsuit alleging abuse of process, defamation following Winnipeg sex assault prosecution

by WeMaple AI
April 1, 2026
0
Peter Nygard files lawsuit alleging abuse of process, defamation following Winnipeg sex assault prosecution

Disgraced fashion mogul Peter Nygard has filed a lawsuit against a long list of defendants — including a woman who accused him of sexual assault and Manitoba's former...

Read more

Alberta NDP’s election rigging warning is ‘tinfoil hat’ talk, provincial justice minister says

by WeMaple AI
April 1, 2026
0
Alberta NDP’s election rigging warning is ‘tinfoil hat’ talk, provincial justice minister says

It’s “ridiculous” for the Alberta NDP to charge that the UCP is opening the door to “cheating and election rigging” in the way it’s approaching the Alberta electoral

Read more

Experts warn betting on Alberta separatism could influence results

by WeMaple AI
April 1, 2026
0
Experts warn betting on Alberta separatism could influence results

Albertans can use offshore gambling services to bet on the likelihood of the province separating from Canada, and that concerns experts who feel that wagering on public policy...

Read more
Next Post
Nick Taylor’s putter-toss logo to become permanent icon for Canadian Open

Nick Taylor's putter-toss logo to become permanent icon for Canadian Open

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

Matt Hougan: Bitcoin Could Hit $1 Million by 2036

Matt Hougan: Bitcoin Could Hit $1 Million by 2036

March 11, 2026
PREVIEW | The Canadian Opera Company’s 2025/26 Season Offers Both New And Old Favourites

PREVIEW | The Canadian Opera Company’s 2025/26 Season Offers Both New And Old Favourites

February 25, 2025
Tow truck operators urge drivers to slow down after fatal hit-and-run on 401

Tow truck operators urge drivers to slow down after fatal hit-and-run on 401

December 4, 2025

Browse by Category

  • Canadian news feed
  • Crypto
  • Faith
  • Geothermal
  • Golf news
  • Hockey news
  • Running & fitness
  • Skateboarding
  • Sports & Fitness
  • WeMaple news
WEMAPLE NEWS – Brand Partnerships

Wemaple will be firmly committed to the public interest and democratic values.

CATEGORIES

  • Canadian news feed
  • Crypto
  • Faith
  • Geothermal
  • Golf news
  • Hockey news
  • Running & fitness
  • Skateboarding
  • Sports & Fitness
  • WeMaple news

BROWSE BY TAG

AZO Clean Tech Bitcoinist Bitcoinmagazine Canada News CBC.ca Celebrity News Christian Post CoinPedia Corporate Knights Crypto Cryptoslate Faith Geothermal Golf Hockey Lifehacker Ludwig-van.com NcrOnline newsbtc Skateboarding tomsguide.com Utah news dispatch

© 2025 wemaple.canadiana.news - all rights reserved. YYC TECH CONSULTING.

No Result
View All Result
  • Home
  • Canadian news feed
  • Skateboarding
  • Sports & Fitness
    • Golf
    • Hockey
    • Running & fitness
  • Faith
  • Geothermal
  • Crypto
  • WeMaple news

© 2025 wemaple.canadiana.news - all rights reserved. YYC TECH CONSULTING.