Criminal Investigations at the Canada Revenue Agency

The Criminal Investigations Program of the Canada Revenue Agency (CRA) is responsible for investigating the most serious cases of tax evasion, tax fraud, and other financial crimes related to Canada’s tax and benefit systems. When sufficient evidence exists, cases are referred to the Public Prosecution Service of Canada (PPSC) for criminal prosecution.

Purpose of CRA Criminal Investigations

The program focuses on enforcement actions that have a strong deterrent effect and help maintain public confidence in the integrity of Canada’s tax system.

  • Investigating deliberate and large-scale tax evasion
  • Addressing tax fraud involving false statements or deceptive schemes
  • Targeting promoters of aggressive or illegal tax schemes
  • Investigating fraud related to benefits, credits, and refunds
  • Supporting investigations involving money laundering linked to tax offences

How a Criminal Tax Investigation Works

Criminal investigations are conducted separately from regular audits. A case may begin through internal referrals, public leads, or information received from domestic or international partners.

  1. Assessment of information to determine whether criminal intent may exist
  2. Collection and analysis of evidence, including financial records and digital data
  3. Interviews with witnesses and, where appropriate, the subject of the investigation
  4. Execution of search warrants authorized by the courts
  5. Preparation of a prosecution report for the Public Prosecution Service of Canada

Types of Offences Investigated

The CRA investigates offences under the Income Tax Act, the Excise Tax Act, and related legislation, including:

  • Failure to report income or reporting false income
  • Claiming false deductions, credits, or losses
  • GST/HST fraud and refund schemes
  • Payroll tax evasion
  • Use of offshore accounts or entities to conceal income
  • Fraudulent benefit and subsidy claims

Outcomes and Penalties

Criminal convictions can result in significant penalties, including:

  • Fines imposed by the courts
  • Imprisonment
  • Court-ordered restitution
  • Public disclosure of convictions to increase deterrence

Criminal penalties are in addition to any civil penalties, interest, or reassessments imposed by the CRA.

Specialized Teams and Expertise

CRA criminal investigations are conducted by specialized investigators supported by forensic accountants, intelligence analysts, and digital forensics experts. Investigations are managed regionally across Canada with national coordination to ensure consistent enforcement priorities.

National and International Cooperation

The CRA works closely with Canadian and international partners to combat tax crime, including:

  • Royal Canadian Mounted Police (RCMP)
  • Public Prosecution Service of Canada (PPSC)
  • Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
  • Joint Chiefs of Global Tax Enforcement (J5)
  • Organisation for Economic Co-operation and Development (OECD)

Reporting Suspected Tax Crime

Members of the public can report suspected tax evasion or tax fraud through the CRA’s leads and information programs. Information provided helps the CRA identify high-risk cases and protect Canada’s tax base.

Additional Resources