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Ontario Contractor Pleads Guilty to Tax Evasion
The Canada Revenue Agency (CRA) has reported that a Vaughan, Ontario based, general contractor has been fined for evading GST/HST.
The press release by the CRA announces that Gilles Larocque of Nobleton, Ontario pleaded guilty to tax evasion. He was sentenced in the Ontario Court of Justice in Newmarket and fined a total of $301,125.
Larocque pleaded guilty on January 7, 2020, in the Ontario Court of Justice in Newmarket, Ontario to two counts of failing to report income by not filing income tax returns, thereby committing tax evasion under the Income Tax Act.
He also pleaded guilty to two counts of failing to remit Goods and Services Tax / Harmonized Sales Tax (GST/HST) under the Excise Tax Act.
A CRA investigation revealed that Larocque, who owned and operated a construction company in the Vaughan, Ontario area, provided general contracting work to clients that included dry walling, framing and ceiling tile installation for gas stations.
Larocque used several aliases and business names and charged clients for GST/HST, which he used for his personal expenses.
Larocque failed to report income in both 2013 and 2014 tax years and evaded a total of $180,401 in federal taxes.
He also failed to file GST/HST returns in both those years, totalling $120,724 in unremitted GST/HST.
The total amount of federal tax evaded and unremitted GST/HST for the years 2013 and 2014 was $301,125.
Charging GST/HST to clients and then keeping it for your own use is not only against the law, but it’s a pretty sketchy way to get another 13% of income. A common rule to avoid this from happening it to always make sure that you ask for a receive a receipt. The receipt pretty-much (but not always) ensures that the seller is reporting the GST/HST that they collect from you, and the income earned from your purchase.
Welcome to inTAXicating.
My name is Warren Orlans and this is my blog. I have been writing this blog since 2008 to provide clarity around taxation issues which I feel should have been explained somewhere - preferably by the CRA.
I have over 20-year's experience in the taxation industry, 11 of them working for the Canada Revenue Agency (CRA), and 5-years working in the private sector Managing the tax departments for large financial institutions.
It was at that point when I realized that people were coming to my blog seeking advice, and asking me to assist them with their tax issues, so I opened up my own business and started helping people deal with issues relating to the CRA.
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.
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If you have a tax question, feel free to ask in the comments, or email me at either firstname.lastname@example.org, or email@example.com.
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