Canada is losing millions of dollars in uncollected customs duties, even following a 2017 report that urged a crackdown on tax evasion at the border, according to an audit.
A Canada Border Services Agency report, “Evaluation of the Duties Relief and Duty Drawback Programs,” indicated that inspectors reported that importers avoiding tariffs were responsible for “significant non-compliance,” according to Blacklock’s Reporter on May 1.
The report said attempts at enforcement had resulted in roughly 32 major lawsuits by companies challenging tax assessments, adding up to a total of $229 million.
“Verifications have revealed significant non-compliance,” said the report. “Over the past five years there have been mounting legal challenges which are a direct result of the Agency ramping up verification of Duties Relief Program supply managed goods participants as applications for relief involve very high monetary values,” according to the audit….