Each and every year, thousands of regular Canadians are prosecuted under the Income Tax Act, convicted of tax evasion and other tax-related offences, and find themselves in jail, sitting with hefty tax fines, or both. May of these are posted publicly on the CRA’s website. Don’t believe us? Here are just a few of the convictions that occurred over the course of 2016.
In January, a resident of Surrey, British Columbia, pleaded guilty to three counts of failing to file his 2008, 2010, and 2013 personal income tax returns. The resident was fined $3,000, payable by June 30, 2017.
In April a New Brunswick resident was assessed a fine of $4,000 for failing to file his 2010 to 2013 personal income tax returns. The resident pleaded guilty to four counts of failing to file his returns.
In May, a resident of Birtle, Manitoba, was found guilty of tax evasion and was ordered to serve a conditional jail sentence of 15 months and fined $99,053. The fine represents 100% of the total federal income tax he attempted to evade. For the 2004 to 2010 tax years, he failed to report a total of $622,820 in income on his income tax returns. The resident also under-reported the amount of goods and services tax to be remitted by $39,647 for the years 2004 to 2008.
In July, in the British Columbia Supreme Court, a resident was sentenced to five and a half years in jail and a fine of $259,482 for one count of counselling others to evade taxes and two counts of tax evasion. A CRA investigation determined that he and his common law spouse failed to report total income of $1,415,366 for the 2004 to 2007 tax years and, as a result, evaded $231,574 in federal income tax payable. In addition, the resident failed to collect and remit $66,149 in goods and services tax for the 2004 to 2008 taxation years.
In November, a Montréal resident pleaded guilty to a tax fraud charge and was sentenced to eighteen months in jail. A CRA investigation revealed that, for the 2003 to 2010 tax years, the resident advised and helped 11 individuals to avoid or try to avoid paying more than $390,000 in income tax by claiming inadmissible expenses to reduce or cancel their taxable income.
In October, an Ottawa dentist was sentenced to 5 years in jail for deliberately choosing not to pay a court-imposed fine for criminal tax evasion. The original fines came as a result of a 2012 conviction and sentence of two years and five months in jail, and $887,328 in fines, which was payable in full by June 30, 2014. Since she was released from jail she made no attempt to pay her court-imposed fines.
Don’t find yourself on the CRA’s target list. Afraid of a tax evasion charge? Contact Tax Solutions Canada today to get your tax problem sorted out. 1 888-868-1400.