Criminal Tax Prosecution

Legal Defense Against CRA Investigations

Tax evasion and fraud allegations carry severe legal and financial consequences, including significant fines, asset forfeiture, reputational harm, and potential imprisonment. If you are being investigated by the Canada Revenue Agency (CRA) Special Investigations Division, it is critical to act swiftly. At KR Law Firm, our experienced tax lawyers provide strategic legal defense for individuals and businesses facing CRA criminal tax investigations or prosecution.

How Does the CRA Investigate Tax Crimes?

The CRA actively investigates and prosecutes tax crimes through its Criminal Investigations Program (CIP). This division focuses on cases involving:

• Unreported Income & Offshore Tax Evasion: Failure to report income from foreign or domestic sources.
• Tax Fraud & False Statements: Falsifying deductions, credits, or income to reduce tax liability.
• GST/HST & Payroll Fraud: Failure to remit collected sales tax or payroll deductions.
• Underground Economy Transactions: Engaging in cash-based business dealings to evade taxes.

When the CRA suspects criminal activity, it may conduct an audit or a full-scale criminal investigation. This process involves:

• Examining tax returns, financial statements, and banking records.
• Conducting interviews with taxpayers, employees, and third parties.
• Collaborating with law enforcement agencies to build a case.
• Executing search warrants to seize records and digital assets.

If sufficient evidence is found, the CRA refers the case to the Public Prosecution Service of Canada (PPSC), which may result in criminal charges under the Criminal Code of Canada and the Income Tax Act.

For official CRA information on tax crime enforcement, visit: How the CRA Combats Tax Crimes.

Penalties for Tax Evasion & Fraud

The penalties for tax-related offenses can be severe, including:

• Fines: Up to 200% of the tax evaded.
• Imprisonment: Up to five years under the Income Tax Act.
• Civil Penalties & Asset Seizures: The CRA may freeze bank accounts, seize property, and garnish wages.
• Additional Criminal Charges: Tax evasion may lead to related offenses, such as fraud or money laundering.

How KR Law Firm Protects Your Rights

1. Early Intervention & Strategic Guidance
If you have received a CRA inquiry or audit notice, our first step is to assess your risk level and develop a strategy. We:

• Evaluate the evidence to determine the strength of the CRA’s case.
• Advise on your legal rights to prevent self-incrimination.
• Manage all CRA communications to ensure compliance without exposing you to further liability.

2. Criminal Defense Against Tax Charges
If criminal charges are laid, we prepare a comprehensive defense, including:

• Challenging CRA evidence and procedural errors.
• Demonstrating a lack of fraudulent intent or misinterpretation of tax laws.
• Negotiating charge reductions or alternative resolutions.

We provide full representation in tax court and criminal proceedings, ensuring that your case is handled with expertise and discretion.

3. Negotiation & Voluntary Disclosures Program (VDP) Considerations
In some cases, proactively addressing tax non-compliance through the Voluntary Disclosures Program (VDP) can help avoid criminal prosecution. We evaluate whether a voluntary disclosure is a viable option and assist in preparing a legally sound application.

Why Choose KR Law Firm for Tax Fraud Defense?

• Extensive Experience in Tax Litigation: We have a proven track record of defending clients against complex tax crime allegations.
• Strong Negotiation & Advocacy Skills: We work to minimize penalties and avoid criminal convictions.
• Confidential & Discreet Legal Support: Our client-focused approach ensures that your rights and reputation are protected.

If You Are Under CRA Investigation, Act Now

If you have received a CRA audit notice, tax fraud inquiry, or criminal charge, do not wait. Book your Free Consultation with us immediately for confidential legal guidance to protect your rights and secure the best possible outcome.