The CRA has begun contacting taxpayers who have sent or received international e-transfers of $10,000 or more
The CRA has begun sending letters to taxpayers involved in sending or receiving international electronic funds transfers of $10,000 or more. The CRA now obtains this information directly from banks and other financial institutions, under Income Tax Act sections 244.1244.7, and is authorized by Excise Tax Act section 273.3 to use the information for GST/HST audit purposes.
The letter reads:
You are receiving this letter because you have sent out of Canada or received from outside Canada electronic funds transfer(s) of $10,000 or more that we want to understand in relation to your recent tax filings.
Similar to the audit letter campaign this is a very low-cost approach, encouraging taxpayers to disclose unreported income before the CRA comes after them. Per the Audit letter campaign that has been run for some years, Voluntary Disclosure treatment is still available if the taxpayer comes forward without being audited. The e-transfer letters do not say it will be whether Voluntary Disclosure treatment will be available in these situations so the taxpayer may no longer qualifies for voluntary disclosure.
A specific contact number set up for this project.
If you have any questions or additional information you can call the CRA at 1-888-333-2033.