Canada Revenue Agency, for the first time, is going to use “Proceeds-of-Crime” laws in order to prevent tax evasion and tax cheats. Under this provision, Canada Revenue Agency can restrain, freeze or seize the assets of the defaulters, even the assets are out of Canada. This is a new weapon that will bring dramatic changes in collection of tax. Even declaring bankruptcy can’t help at this time.
The good thing is, the door of the voluntary disclosure program is still open for the tax evaders to avoid prosecution and penalties. However, they still have to pay the tax owed.