There may be those who have experienced circumstances beyond their control preventing them from paying on time. Others may have no financial means to pay due to a pending bankruptcy. Also, there are those who avoid or evade taxes. Different actions are required to recover taxes in these different situations. Table 2 also provides a summary of the most recent actions taken in this area.
Tax evasion is the most serious aspect of non-compliance.
It is the deliberate action of illegally hiding or underreporting income or inflating deductions or expenses. Revenue Canada, together with provincial authorities, have focused on a number of sectors of the economy where the risk of tax evasion is high, including construction, jewellery sales, auto repairs, home repairs, hospitality and other services. Sector-specific strategies have been developed such as the new reporting system for the construction industry. Revenue Canada also deals with tax evasion through criminal investigation programs. In 1995-96, special investigations reviewed over 28,000 referrals from external sources.