Question Period Note: OFFSHORE TAX INFORMANT PROGRAM (OTIP)

Can you please provide an update on the Canada Revenue Agency’s Offshore Tax Informant Program (OTIP)?

• The Canada Revenue Agency implemented the Offshore Tax Informant Program (OTIP) in January 2014 to obtain better data to ensure taxpayer compliance.

• The OTIP allows the Agency to combat international tax evasion and aggressive tax avoidance by paying individuals who provide specific and credible details about major international tax non compliance.

• Since its launch, the Agency has received over 1400 calls and over 600 written submissions from potential informants.

• The number of calls and submissions received by the OTIP indicates that the program is working and, based on the Agency’s results, is generating the type of information it was intended to yield.

• As of March 31, 2019, over 420 taxpayers have been identified for audit based on information the Agency has received through the OTIP, and the over 100 finalized audits identified in excess of $50 million in additional federal taxes and penalties, $19 million of which has already been collected.

• New information received by the OTIP is producing additional intelligence, which may not have otherwise been available to the Agency. This additional information is allowing the Agency to better target other taxpayers who may be committing similar non-compliance.

• The Agency is currently considering enhancing its existing whistleblower programs which would include OTIP.

Launched as part of the Agency's efforts to fight international tax evasion and aggressive tax avoidance, the Offshore Tax Informant Program (OTIP) allows the Agency to make financial awards to individuals who provide specific and credible information related to major international tax non-compliance that leads to the collection of taxes owing.

The OTIP was launched on January 15, 2014. As of March 31, 2019, the program has received over 1,400 calls from potential informants, over 600 written submissions and entered into 39 contracts with informants.

Information received through OTIP is resulting in new audits and where warranted, referrals to criminal investigations. The number of calls and submissions received by the OTIP indicates that the program is working and, based on our results, is generating the type of information it was intended to yield.
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The Agency will report to Canadians on results of the OTIP through the Agency’s Departmental Results Report.
Information, however, such as the details of taxpayer audits or payments made to informants, that may have the potential to reveal the identity of confidential informants or relate to taxpayer information cannot be disclosed.

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