An internal Canada Revenue Agency survey suggests many Canadians believe the tax collector is tougher on middle-class taxpayers than on wealthy individuals and large corporations, even as audits targeting high-net-worth Canadians have fallen sharply in recent years.The findings, contained in the CRA's Annual Corporate Research Quantitative Phase report, indicate skepticism about the agency's enforcement efforts increases alongside household income, while nearly one-third of businesses believe tax cheating is common.According to the survey, 72% of respondents agreed with the statement that wealthy people have an easier time cheating on their taxes than middle-class Canadians. Blacklock's Reporter said the report did not define what constituted "rich."A majority of respondents, 58%, also agreed with the statement that the CRA "goes after middle class Canadians but turns a blind eye to rich taxpayers," including corporations.The report found students, full-time workers, unemployed Canadians and retirees were among the groups most likely to believe wealthy taxpayers receive preferential treatment.Researchers also found Canadians broadly recognize that tax evasion reduces government revenues for public services. However, only 17% said they would report someone they suspected of cheating on their taxes.The survey further suggested many Canadians see little wrong with paying cash for home or vehicle repairs to obtain a discount or failing to report cash income on their tax returns.The findings are based on responses from 2,591 individual taxpayers and 1,606 small business owners and accountants. The CRA paid Ottawa-based Quorus Consulting Group Inc. $163,386 to conduct the research.The public's perception comes as the number of CRA audits targeting high-net-worth Canadians has dropped significantly.According to a 2024 Inquiry of Ministry tabled in the House of Commons, the number of net-worth audits declined from 1,594 in 2018 to 461, a drop of roughly two-thirds.Over the same period, taxes collected through those audits fell from $132.6 million to $97.4 million, a decline of about 27%..Conservative MP Adam Chambers questioned the decline during a Commons finance committee meeting, suggesting the figures raise concerns about the agency's priorities."Are they reshuffling resources within the Agency?" Chambers asked. "I have a suspicion."Chambers also noted the number of net-worth assessments based on actionable intelligence had fallen substantially, despite there being no indication that intelligence reports themselves had decreased.The government's response to the parliamentary inquiry did not explain why the number of specialized audits had declined.
