News release OTTAWA, ONTARIO, August 3, 2006 -- Officials of the Canada Revenue Agency (CRA) and the United States Internal Revenue Service (IRS) today announced significant progress in unravelling an abusive cross-border tax scheme. This effort stems from leads and information first developed by the Joint International Tax Shelter Information Centre (JITSIC). The scheme involves hundreds of taxpayers and tens of millions of dollars in improper deductions and unreported income from retirement account withdrawals. Canadian and U.S. promoters have been marketing the scheme on both sides of the border to individual investors, ranging from middle to high-income individuals. Leaders of the CRA and IRS said the collaborative effort reflects the progress being taken by JITSIC in the complex task of tracking international tax schemes and shelters involving individuals and corporations. CRA Commissioner Michel Dorais said, "Tax administrations in many parts of the world are working together to detect and shut down abusive tax schemes. Promoters who believe they can play one country against another in developing tax schemes should beware." "The real time exchange of information, including the identities of promoters and hundreds of investors has been critical to this investigation," said IRS Commissioner Mark W. Everson. "JITSIC is emerging as an important part of efforts to combat abusive schemes." Under the scheme, investors purchased what appear to be high-yield offshore investments through offshore corporations and foreign bank accounts. Typically, investors make these purchases using cash or proceeds from withdrawals, allegedly tax free, of retirement funds (RRSPs in Canada, IRAs in the U.S.). Investors also make purchases through using tax refunds improperly generated by alleged losses claimed for natural resource industry investments. CRA and IRS agents continue to identify promoters, participants and entities involved in the scheme. Promoters and participants engaged in abusive schemes have routinely been subjected to strict enforcement action by both tax administrations. JITSIC was established in 2004 by the tax administrations of four countries, Australia, Canada, the United Kingdom and the United States, to supplement the ongoing work of the Australian Taxation Office, Canada Revenue Agency, Her Majesty's Revenue and Customs, and the Internal Revenue Service in identifying and curbing abusive tax schemes. Delegates from each of the four countries work together in Washington, DC. ============================= For a follow up definition (by the CRA) of the difference between tax avoidance and tax evasion, see: http://www.cra-arc.gc.ca/agency/alert/avoiview-e.html For an example of the prosecution by the IRS of a Vancouver resident, see the New York times articles at: http://topics.nytimes.com/top/reference/timestopics/organizations /i/internal_revenue_service/index.html?query=SCHNEIDER,%20JEROME& field=per&match=exact or my own CENTAPEDE WHICH DEALS WITH OVER $100,000 OUT OF Canada at; http://www.centa.com/CEN-TAPEDE/archive/Week-of-Mon-20051010/0020 95.html Jerome Schneider turned over 1,000 of his clients and the lawyers and accountants who helped over to the IRS as part of a plea bargain. -------------------------------------------------- David Ingram's US / Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists My Home office is at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 10 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com www.centa.com www.david-ingram.com Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" David Ingram gives expert income tax & immigration help to non-resident Americans & Canadians from New York to California to Saudi Arabia to Mexico to China or Chile - Cross border, dual citizen - out of country investments are all handled with competence & authority. 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David Ingram deals on a daily basis with expatriate tax returns with: multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, and any of the 43 states with state tax returns, etc. Rockwall, Dallas, San Antonio Houston Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax Immigration Wizard Antarctica Rwanda Guru Consultant Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist expert preparer expatriate anti money laundering money seasoning FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border transactions Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US -------------- next part -------------- An HTML attachment was scrubbed... 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