The government announced new measures to combat the underground economy and the use of electronic suppression of sales (ESS) software. This software removes or modifies sales transactions allowing companies to hide their sales to avoid paying taxes.
Under the Federal Government’s Economic Action Plan businesses that use, possess, or acquire ESS software will face monetary penalties of $5,000 on a first infraction and $50,000 on any subsequent infraction. Anyone who makes available ESS software will face monetary penalties of $10,000 on a first infraction and $100,000 on any subsequent infraction. In extreme circumstances the businesses that use or supply ESS can be charged criminally and face imprisonment.
For more information on the Federal Government’s effort to crack down on tax cheats read the full article on the CRA website here.