Canada’s tax authority is under renewed scrutiny after issuing another multimillion-dollar refund to a single taxpayer, raising concerns about internal controls and verification processes.
Court documents obtained by investigative programs reveal that the Canada Revenue Agency disbursed approximately $5 million last May to Teresa Wallace, a business owner based in British Columbia. Records indicate her hemp and grain processing business typically generated an annual income of around $54,000.
However, the agency later alleged that the submitted tax return contained inconsistent and fabricated details. An internal affidavit shows officials recognized the error two months after the payment, acknowledging that the claim had not been properly reviewed despite being flagged for manual assessment.
A source familiar with the agency’s operations, speaking on condition of anonymity, expressed frustration over repeated lapses, questioning the effectiveness of existing safeguards and oversight mechanisms.
Attempts to contact Wallace for comment were unsuccessful, with no response to messages sent to her business.
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