CRA Convictions: Former Senior Liberal Adviser Convicted of Failure To Report Income and Benefits

The CRA has reported that Herb Metcalfe, a former senior adviser to Stephane Dion and Liberal lobbyist has received a conditional sentence of two years less a day – including 12 months house arrest – for failing to report $1.4-million in payment and benefits between 2002 and 2006.

Mr. Metcalfe pled guilty to one count of income-tax evasion and was fined $396,259, which represents 100% of the total taxes evaded.

A CRA investigation focused on Mr. Metcalfe’s work as a director and employee of the Capital Hill Group Ottawa Inc., which the agency describes as “a political lobbying business.”  He is no longer a member of this group – having stepped aside from the business.

The agency states that Mr. Metcalfe prepared his tax returns each year by hand and either knew, “or was willfully blind to the fact,” that the income he received was required to be reported on his returns.

“The Canada Revenue Agency pursues tax evaders to maintain public confidence in the integrity of the tax system,” said my former Director of the Toronto North Tax Services Office, Vince Pranjivan, who is now the CRA’s assistant commissioner for the Ontario Region.

The CRA issued a news release dated Nov. 18, 2015, outlining the fine and conviction. However the release did not immediately receive media attention due to public-service rules related to communicating during an election.  Mr. Metcalfe was sentenced on September 30th, 2015 which was during the Federal election campaign, which meant the CRA posted the conviction on November 18th and at that time was able to notify the media.

 

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Author: Warren Orlans

Welcome to the blog for Intaxicating Tax Services, www.intaxicating.ca. My name is Warren Orlans and I am the owner of inTAXicating Tax Services. With over 17-years experience in the taxation industry, 11 of them working for the Canada Revenue Agency (CRA), and the rest working in the private sector at large financial institutions responsible for resolving tax issues for corporations and individuals and the Canadian lead for a large US bank on FATCA implementation. My tax career began pretty much out of university at the CRA, in Collections, where I moved up, across, over and up again through their division with stops in Enforcement, Taxpayer Relief (then Fairness), Audit, Directors Liability, Training, Mentoring, GST, GST/HST, Payroll, Corporate Tax, Personal tax, and probably much more. If you have a collections, compliance or audit issue with the CRA, MRQ, IRS or with the CRTC, WSIB or any aspect of those agencies, inTAXicating is the place you need to contact. inTAXicating Tax Services has strategic partnerships which allows my team to include amazing tax lawyers, insolvency practitioners, mortgage brokers, debt counselling experts and much more. When dealing with governments, knowledge is power. We possess strong understanding of government so we know what the next step is before the government does. When you have a collections problem with the CRA, do you hire a graphic artist? No, you get a former collector who trained the staff, and who worked as a resource officer for 5 years. Then you know you are on the right track to resolving your tax problem(s). Others offer suggestions. We offer solutions! info@intaxicating.ca

3 thoughts on “CRA Convictions: Former Senior Liberal Adviser Convicted of Failure To Report Income and Benefits”

  1. Well that’s not a Big Penalty for the Amount ! I Had my CGA File My Taxes & they Where Filed & Processed with NO Problems ! Two years Later the CRA RE Audit . Disallowed 100,000$ of Legitimate Expenses! Then that became Taxable income + Fines / Penalties/ ETC != +$$$! ! Then They Took 100,000$+ Equipment = LOSE the Farm=Bank Ruptcy = Losses of 5+ Million$=Destroying My Life !

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  2. Hi Guy,

    Thanks for taking the time to comment. Usually the processing department of the CRA just input the returns – no judgement made. Down the road the CRA will audit specific industries or tax deductions claimed if they see a pattern by industry or by a certain tax preparer who may be bending the rules citing expertise.

    I’m sure if the expenses were legitimate then either the CRA would not have disallowed them or proper proof was not provided in order to have them re-instated. I have never heard of a situation where valid expenses were disallowed without reason and that covers 11-years at the CRA and 7-years post-CRA.

    Happy to discuss further with you at any time.

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