Whistleblower Law Ontario

Whether you are a resident of Canada or not, anyone may be eligible for the CRA`s rewards program if the information provided contains specific and credible details that result in the imposition and collection of additional taxes. The information provided may not already be known to the credit rating agency or speculative. Information obtained from potential whistleblowers about non-compliance with international taxes can range from not reporting foreign income to avoiding paying the taxes they owe. Other examples include: The OSC`s Whistleblower Program received a total of 650 whistleblower reports across Canada and 15 other countries. The number of annual whistleblower submissions has increased each year, according to the OSC. To date, the OSC has provided more than $8.6 million to whistleblowers. In early January 2014, the Canada Revenue Agency (CRA) launched its first-ever whistleblower rewards legislation under the Foreign Tax Informant Program (PAC) to track down tax evaders. Two years later, the Province of Ontario, Canada, went one step further and adopted the Ontario Securities Commission`s (OSC) whistleblower program to protect investors from unfair and fraudulent practices. Ontario law defines a whistleblower as a natural or legal person who discloses to the CEO “an alleged or anticipated violation” of any law of FSRA`s law and requires that his or her identity as a whistleblower remain confidential. The CEO must also give them an assurance of confidentiality, subject to exceptions. Various offices and courts are tasked with investigating and hearing complaints from public sector employees against whistleblowers. At the federal level, the Public Sector Integrity Commissioner investigates whistleblower complaints about reprisal and, if he or she has reason to believe that reprisal may have occurred, refers the complaint to the Public Servants` Disclosure Protection Tribunal for hearing and making a decision.

However, the most common outcome of Commissioners` investigations is conciliation; Since 2011, the court has heard only eight cases. To date, Canada`s two whistleblowing programs have been incredibly successful, with whistleblowers receiving more than $1 million in rewards for their ITP disclosures by 2019, and OSC whistleblowers receiving more than $8.6 million since its inception. In addition, Ontario`s Securities Act launched a new whistleblower program in July 2016. These were amendments to the Securities Act that provide additional protection to individuals who report a potential violation of the Ontario Securities Act. In the first two years of the program, the OSC received approximately 200 whistleblower tips and began distributing prizes in 2019. These allowances range from 5% to 15% of the total financial penalties imposed by the Commission. To date, whistleblowers have received more than $8.6 million in awards, including a recent whistleblower award that was split among three people in November 2020. The OSC`s Whistleblower Program accepts information about potential violations of Ontario`s Securities Act and offers whistleblowers who present themselves protection and rewards of up to $5 million for reports leading to enforcement action. OSC whistleblower compensation ranges from 5% to 15% of the amount charged by the Commission based on a whistleblower`s information, up to a maximum of $5 million.

The actual percentage depends on the value of the information and the whistleblower`s support for the case. Whistleblowers provide a public service and help strengthen the industry`s culture of compliance by providing original information about misconduct that would otherwise be difficult to detect. With the help of whistleblowers, we can prevent or limit further harm to investors and better protect the integrity of our market. The laws also invalidate certain provisions of contractual agreements between employers and employees that aim to deter whistleblowers from reporting securities-related misconduct. Anonymous whistleblowers are entitled to a possible reward; However, the whistleblower must disclose his or her identity to the OSC after being eligible for sentencing. The informant may need to provide additional information so that the OSC can verify that it meets the eligibility criteria before an award can be granted, if necessary. In 2014, Canada passed its first-ever whistleblower rewards legislation under the Offshore Tax Informant Program, followed by a second law in the province of Ontario in 2016. While governments and regulators are increasingly encouraging whistleblowers to make corporate misconduct public, whistleblower protection is still very limited. Few Canadian laws relate directly to whistleblowing and, as a result, whistleblowers are generally not protected by law. Two important provisions of the PSDPA ensure the protection of whistleblowers. Article 19 merely states: “No one may take reprisals against a public servant or order that such reprisals be taken against a public servant.” Article 42.1, paragraph 1, also provides protection against reprisals against workers who report misconduct in the public sector but who are not themselves public servants. Remedies for whistleblowers under Ontario law include: However, the SEC`s whistleblower program offers greater rewards.

The SEC rewards securities whistleblowers with 10% to 30% of the amount collected based on information provided by whistleblowers when SEC sanctions exceed $1 million. There is no maximum limit on the dollar amount. The SEC has awarded about $942 million to 186 people since it awarded its first prize in 2012. The SEC paid out $57 million in rewards to whistleblowers in May 2021 alone, eclipsing the OSC`s historical total in a single month. Whistleblower reports to the OSC include information on investor and regulatory deception, illegal insider trading, market manipulation, abusive short selling, and retaliation against whistleblowers. .

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