Quebec authorities are stepping up investigations to remove provincial residents who use fake Ontario addresses to save thousands of dollars in taxes each year.
Radio-Canada found that Revenu Québec has conducted hundreds of audits over the past few years to find Ontario taxpayers who, in fact, have primary residence in Quebec.
According to our information, the Sûreté du Québec (SQ) was still involved during the pandemic, conducting dozens of investigations to set up files for the tax authorities.
Revenu Québec says it recovered nearly $ 6 million between 2019 and 2021, including penalties and interest. However, many believe that Quebec is not doing enough to recover its fair share of taxes.
The situation brings particular discontent to Outaouais, the area with the densest population on the border between Ontario and Quebec.
More and more residents are reporting their neighbors to the authorities, especially in cases where family members, for example, have been hiding Ontario license plates for years.
The situation is likely to escalate as a growing number of Ontarians live in Outaouais, attracted not only by lower housing and electricity costs, but also by more affordable services for families, such as daycare.
A crime that can be paid
According to various tax experts, there is a strong temptation for some Quebec residents to use an Ontario address during tax time. For a couple with a large income, the savings quickly exceed $ 10,000.
At all levels, it’s more interesting to stay in Ontario, and quite, when you make the comparison by income bracketexplained Éric Gélinas, professor in the Department of Taxation at Sherbrooke University.
Accountants say Quebec professionals working for an Ontario -registered company can save more because of the low tax rate on small businesses that are not employees of the province.
Investigations are on the rise
According to a spokesman, the SQ set up approximately fifty cases in 2020 and 2021 in connection with tax evasion allegations, mainly among Outaouais. Ang SQ declined to comment in more detail on its activities, saying it was working in collaboration with Revenu Québec on these files.
According to our information, the investigation of SQ was augmented by the work of patrol officers who conducted inspections when non -essential travel was prohibited during a pandemic. Moreover, the SQ conducted investigations following denunciation by neighbors during this period.
On the side of Revenu Québec, a specialized team of auditors at residence tax was established in 2017. This unit discusses fake address scheme in the border regions.
" Revenu Québec is well aware of this method and has made no effort to counter it. A priority for Revenu Québec is Québec’s full recovery of the tax revenues payable to it. It is a matter of being fair to all citizens and businesses fulfilling their obligations. "
In three years, the agency reviewed 447 individuals and sent notices of assessments - usually over several years - to 179 of them. In total, Revenu Québec collected $ 5.7 million in additional revenue.
The office of the Quebec Minister of Finance says he knows about phenomenon of tax evasion noticed in neighboring regions in other provinces.
We will continue to ensure that the necessary efforts are made to ensure tax fairness for allsaid Fanny Beaudry-Campeau, spokeswoman for Minister Éric Girard.
Hard to pin
New Quebec residents officially have 90 days to register their vehicle with the Société de l’assurance automobile du Québec. It was also three months later that they were covered by the Quebec Health Insurance Plan.
New residents must also pay their Quebec taxes once they establish their primary residence in the province, on December 31 of each year.
According to Éric Gélinas, the place of residence is determined according to a series of objective criteria, and not according to the personal preference of the taxpayer.
However, this tax attorney agrees that it can be difficult for Quebec authorities to identify Quebec residents who use an Ontario address.
Adding to the challenge is that Quebec is the only province with its own tax collection agency. Residents of other provinces simply filed a return with the Canada Revenue Agency (CRA), which handles federal and provincial portions.
Even in cases where a fake address is used, theBOW don't lose money.
The federal component is still paid, and the provincial component is paid in Ontario, so no one will complain about it, except in Quebecsaid Mr. Gélinas.
The French Impératif group has been complaining about the situation for years, saying that the authorities are complacent about the phenomenon of fake Ontario. According to the group’s president, Jean-Paul Perreault, Quebec taxpayers are the victims because they are the ones who have to pay, apart from themselves, the taxes of these fraudsters.
The opposition demands a blitz
The Liberal MP for the ride in Pontiac, in western Outaouais, said he regularly hears complaints from citizens about the unfairness caused by this tax evasion.
This is fraudAndré Fortin believes. All good taxpayers, people who do things the right way, who pay the bill at the end of the day.
Mr. Fortin added that according to his discussions with members of SQinvestigations in such cases take several days to complete.
According to him, the provincial authorities should send a clear signal to the population that they take this issue seriously, by multiplying investigations. Authorities should, among other things, target people who permanently lived in their chalets during the pandemic.
A blitz can send a message. There are many people who, if they have a threat of getting caught, can do the right thing.He suggests.
André Fortin asserts that, at present, it is impossible to quantify the tax losses incurred by the State of Quebec. But he is convinced that the total amount far exceeds the amounts recovered in previous years by Revenu Québec.
Source: Radio-Canada
