Canadians' Attitudes Toward Reporting on Tax Cheating November 2006

Prepared for the
Canada Revenue Agency
FINAL REPORT
Contract# 46558-078740/001/CY
POR# 183-06

Prepared by:
Environics Research Group

Le rapport complet en français sera fourni sur demande.

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Canada Revenue Agency
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Executive Summary

Canadians are ambivalent about whether or not they would report tax cheating by someone they know to the authorities. The findings indicate that most Canadians would be reluctant to report tax cheating if they only suspected the person of cheating on their taxes. Even if they know for certain that someone is cheating on their taxes, a majority say they would not report this to the authorities, compared to about four in ten who would do so.

The main reason Canadians would be reluctant to report tax cheating to the authorities is that they feel that it is none of their business what other people do, although some also express reluctance to get someone they know in trouble or say it would depend on whether the tax cheating could be proven. The main reason why Canadians say they would report tax cheating is that it is unfair to people who do pay their taxes.

There are a variety of circumstances that would make a difference to Canadians in their decision to report tax cheating by someone they know to the authorities. Of the four circumstances presented, the biggest determinant would be the amount of money involved, but a majority of Canadians say it would also make some difference to them if the person involved was a relative or someone they know well.

A majority of Canadians say that if they were going to report tax cheating to the authorities, they would choose the Canada Revenue Agency (or Revenue Canada or CCRA). Only a very small proportion would report this situation to the police. The preferred methods for contacting the CRA about tax cheating are telephone and, to a lesser extent, by a secure Internet website. Much smaller proportions would contact the CRA by sending a letter or a fax or by visiting the CRA in person. Younger people are more inclined to contact the CRA through the Internet, while those over 60 prefer the telephone or sending a letter, which is consistent with broader patterns of age-related communication preferences.

Many Canadians say they would be unlikely to contact the CRA via the web because they do not have Internet access, while almost half of those who are reluctant to use this method cite concerns about confidentiality.

The above suggests that there are two important barriers to reporting tax cheating: the potential ramifications of reporting someone they know, and reluctance to interfere in the affairs of others. Regarding online reporting, concerns about personal privacy and Internet security are potential barriers.

Date modified:

2007-03-01