Canada crypto tax

[brbr22]

What happens if someone doesn't pay income tax in Canada and leaves the country? Can the CRA really do anything?

 

[Jorozey]

If you leave it like that and you come back to Canada after some time you will have problems for tax evasion. According to Section 238 of the income tax act, failing to file your tax return can result in a fine of $1,000 – $25,000 and up to one year in prison.

If you have property, it will likely be confiscated, bank accounts frozen, etc.THEY always find a way to get their "due" back.

The only way is to own nothing more in Canada and leave for good, decide for yourself if it's worth it.

 

[Sols]

If you leave no assets behind, there isn't much they can do against you personally. They might harass or try to intimidate family members or close associates to persuade you to return or settle your debt, but that's usually just smoke and mirrors. Not sure if I've CRA do that, but have seen it from a few others.

Any assets you do leave behind can be seized up to the value of the tax debt (plus fines and interest).

The CRA can in some circumstances do a third-party assessment and declare another person liable for your tax debt.

If your tax non-payment turns into something more serious (money laundering, fraud), then Canada's options increase and you could for example face extradition.

So it depends on your circumstances.

US famously refuses to renew passports for citizens with significant tax debts. Canada often mirrors what US does, but it hasn't done copied that particular policy yet, AFAIK.

 

[miketrnd]

Depends where you move to. They have mutual collection agreements with a few other tax agencies such as New Zealand, Norway + few others.

 

[Jerry1911]

mutual collection agreements

Is there a website where we can check that?

 

[miketrnd]

Is there a website where we can check that?

Not that I know of but here is the New Zealand treaty. Convention between Canada and New Zealand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion With Respect to Taxes on Income - Canada.ca

I would check the treaty between Canada and whichever country you are interested in and look if it has a section on "Assistance in the Collection of Taxes"

 

[Jorozey]

Is there a website where we can check that?

If we talk about this list Tax treaties - Canada.ca

 

[brbr22]

If you leave it like that and you come back to Canada after some time you will have problems for tax evasion. According to Section 238 of the income tax act, failing to file your tax return can result in a fine of $1,000 – $25,000 and up to one year in prison.

If you have property, it will likely be confiscated, bank accounts frozen, etc.THEY always find a way to get their "due" back.

The only way is to own nothing more in Canada and leave for good, decide for yourself if it's worth it.

What if they file taxes but just don't pay them, meaning the taxes due keep cumulating interest on them forever.

 

[miketrnd]

What if they file taxes but just don't pay them, meaning the taxes due keep cumulating interest on them forever.

link

 

[brbr22]

link

That was more of a question than a statement lol

 

[miketrnd]

Yes the interest does keep adding up until it's paid.