Tax cheats target of new federal draft law

The federal government has unveiled draft legislation designed to crack down on international tax cheats.

Law would require banks to report if $10K or more of money is transferred into or out of Canada

The Ugland House, the registered office for thousands of global companies, stands in George Town on Grand Cayman Island. Draft legislation proposed in Ottawa would try to track money sent to and from tax havens. (David McFadden/Associated Press)

The federal government has unveiled draft legislation designed to crack down on international tax cheats.

It is asking for public comment on the draft, which would require banks and other financial entities to report transactions of $10,000 or more coming into or leaving Canada.

If enacted, the legislation would also deem separate transactions made within 24 hours as one money transfer, if the amounts total more than $10,000.

The proposal would also force casinos to report transfers of $10,000 or more by registered charities that they operate.

The government is hoping to have the legislation passed into law by the beginning of next year.

The Conservatives pledged in last year's federal budget to bring in the changes.