Introduction
Taxation law is a complicated, nuanced beast. When a criminal investigation is launched by the Canada Revenue Agency (CRA) into a taxpayer for alleged violations of tax law, the law’s complications become more pronounced. In these moments, it can be stressful for taxpayers and their advisors to be aware of certain collateral consequences that can arise from criminal investigations. That said, it is frequently worse for the taxpayer to overlook the ways in which a criminal tax investigation presents a different set of challenges than regular tax administration.
This article aims to introduce taxpayers and their advisors to some of these collateral consequences, including: Disclosure of taxation offences and investigations to the public; invasive and lengthy investigations conducted by the CRA; and the possibility of charges being laid against individuals associated with the taxpayer. When advising taxpayers on their tax liability in situations where there is potential for criminal charges, it is important to be mindful of these consequences derived from criminal law.