CRA Prosecutions - Over 80 People Already Convicted by CRA in 2014!

Anyone who thinks a CRA prosecution will not happen to them needs to take off the rose-coloured glasses. Fact: CRA prosecutes people for tax evasion and is often successful obtaining convictions. On top of penalties and interest that CRA assesses when they determine that someone has evaded their taxes, if the matter is brought to court additional criminal fines and imprisonment can be result for the person or business owner who is convicted.

Let’s look at 2014. CRA prosecutions in 2014 have led to over 80 convictions in Canada with penalties ranging from fines to jail time. In addition to being tried and convicted – those who are convicted face the humiliation of having the details of the case broadcast on CRA’s website for all the world to view.  Below are some examples.

In June, Allan Curle and Bruce Johnson, directors of Norall Group Contracting Inc. of Thunder Bay, were charged with tax evasion and sentenced to 14 months (Curle) and 10 months (Johnson) in jail, as well as a total fine of over $300,000. These fines represent 100% of the federal taxes each individual evaded, plus 50% of the cumulative total of federal income taxes evaded. These sentences came about after both failed to correctly file income taxes.

In July, Peter McCallion of Mississauga was convicted on fifteen counts of failing to file corporate, GST/HST and personal income tax returns. This resulted in fines of $1,000 per count, a total of $15,000, and McCallion was given 27 months to pay the fines.

If you know that you have undeclared income and CRA is not onto you yet – all of this can be avoided through the Voluntary Disclosure Program (VDP). Through a VDP application you can get to CRA before they get to you, they can accept the undisclosed information without prosecuting you or even charging you penalties.  You have to act first so act fast.  Tomorrow may be too late.  Even one phone call from CRA can wipe out your VDP rights.

If the ball has already started rolling and CRA is asking questions, red alert! You need to get professional representation right away. This could be a ticking time bomb and every interaction directly with CRA can weaken your ability to defend yourself.

For more about protecting yourself and declaring undeclared income, please call Tax Solutions Canada today at 1-888-868-1400.

CRA Prosecutions Even in the Holiday Season

We are well into 2014 now, but that doesn’t mean that the Canada Revenue Agency wasn’t working hard over the last few months to prosecute those they found to be non-compliant. During the holiday season, CRA, in true form, showed no mercy in their attempts to find and penalize average, hardworking Canadians. Even during the holidays, CRA prosecutions attacked Canadians. 

December 2013 CRA Prosecutions: 

·        In December, CRA announced that a Brampton woman and her father had been found guilty of tax fraud, resulting in fines of over $1.2 million for the former and almost $400,000 for the latter, as well as jail time. This comes as a result of charges laid due to failure to remit payroll deductions to CRA.

·        Also in December, a Woodbridge man was found guilty of failing to file GST/HST returns for his heating and air conditioning business. He was fined $1000 per count, for a total of $20,000. 

·        Yet another holiday season prosecution saw a Tottenham resident charged with one count of failing to file a personal income tax return, resulting in a fine.  

January 2014 CRA Prosecutions:

·        In January, a Brampton resident was found guilty of eight counts of failing to file personal and GST/HST returns. This resulted in a total fine of $8,000 with a time limit of 12 months to pay the fine. This came about after CRA found that personal and business tax returns had not been filed for various periods from 2002 to 2012.

·        Also in January, a Toronto resident was fined $6,000 for failing to file the 2008 corporate tax return for his flooring company. He was given 24 months to pay the fine. 

These cases represent just a few of the numerous CRA prosecutions over the holiday season – the daily prosecution of taxpayers does not stop. They demonstrate just how crucial it is to get your taxes in order when you have not been 100% in line with the filing rules.  

Owing money to CRA is not illegal, but failing to file your taxes is, and as these prosecutions show, no one is safe. As far as CRA is concerned, it doesn’t matter who you are or what time of year it is, if CRA thinks you owe them money they will assess you and do whatever they need to collect. This collection action against you is stressful enough but ongoing failure to comply can quickly lead to a criminal prosecution.  It makes obvious common sense not to turn a financial problem into a criminal problem.   

You have to act – the problem will not go away on its own.  If you have missed several filings you need to minimize the interest and penalties as well as avoid criminal prosecution. This is not a game and the consequences are serious.  Handled by an experienced professional you will get a fair solution that does not wreck your business or otherwise cause you stress and unnecessary financial hardship. 

To find out more about how to become compliant please contact Tax Solutions Canada by calling 1-888-868-1400.