George Nkoke Nnane of Richmond Hill, Ontario, was sentenced in the Superior Court of Justice in Toronto to 4-years in jail for filing fraudulent tax returns, the CRA has reported.
The Canada Revenue Agency (CRA) is reporting that home-decor chain Bouclair Inc. its CEO, and former VP are scheduled to go to trial on tax-evasion charges in January 2021.
The CEO, Peter Goldberg, a Westmount, Quebec resident faces eight charges alleging he violated the Income Tax Act between 2009 and 2011. Bouclair Inc. is charged in the same case as their former VP, Erwin Fligel.
The charges were filed by the CRA in 2018 following an investigation where by the CRA alleges that the CEO and former VP willfully evaded payment of income taxes and made false statements when filing income tax returns for Bouclair Inc. and for Goldberg.
Fligel is charged with six charges while Bouclair has been charged with 4 charges. The charges do not specify the monetary figures involved.
During a hearing before Quebec Court Judge Jean-Jacques Gagné held at the Montreal courthouse on January 30th, 2020, both sides agreed to schedule a trial between Jan. 11-29, 2021.
In November, Bouclair Inc. announced it would file for bankruptcy as part of a plan to allow it to be acquired by a new investor group, Alston Investments Inc., which is also headed by Goldberg. At the time of the announcement the privately held company had 102 stores in Quebec, Ontario, Western and Atlantic Canada.
A liquidation order issued by a Quebec Superior Court judge on Nov. 15 indicated that Bouclair Inc. intended to close at least 29 of its stores.
The Canada Revenue Agency (CRA) have charged a quartet of “tax protesters” in Québec with tax fraud, alleging that the 4 operated a scheme which helped over 50 participants evade more than $1 million in federal income tax.
Allegations, not yet proven in court, claim that they advised 50 taxpayers to claim losses totalling more than $19 million in losses, or close to $1.08 million in federal income tax.
Pierre Cardin and Sylvain Quirion of Montreal, Jean-Marc Paquin from Laval, and Contrecoeur resident Guylaine Tremblay were arrested and released with a promise to appear, and court-imposed conditions, the CRA reported.
The CRA used this opportunity to reiterate its warning against getting involved with tax protestors, noting that Canadian courts have consistently rejected these schemes.
“For those involved in tax protester schemes, the CRA will reassess income tax, calculate interest and impose penalties,” the announcement says. “In addition, upon a conviction for tax evasion, the court may impose a fine between 50% and 200% of the tax evaded and a jail term of up to five years.”
Earlier this year, the CRA issued an alert about tax schemes claiming that, “natural people” are not subject to tax laws, because it’s not true.
“Individuals who promote such views are “tax protesters” who not only fail to report their own earnings, but they also try to convince others to engage in these illegal activities,” the CRA said in the alert.
The CRA has always kept an eye on these sorts of schemes and regularly uses the opportunity to promote situations where charges are laid, or where the court charges fraudsters in order to remind Canadians to steer clear of this type of tax evasion.
Recently, the CRA reported that, between 2006 and 2017, 75 promoters had been convicted in connection with these kinds of schemes, resulting in $7.15 million in fines and a total of 936 months of jail time.
If someone is charging you money to teach you how to pay less tax, you might want to steer clear.
If, however, you have taken part in a scam, or scheme, or if you believe that you are a “natural person” and that taxation does not apply to you, please send me an email to info@intaxicating, so we can discuss the very significant consequences which you can face.
I won’t judge you. I’ll listen, and I’ll explain and answer questions.
The Canada Revenue Agency (CRA) announced that James Harvey Cameron, a former resident of Calgary, has been sentenced to 11 years in jail and fined $550,892 after defrauding investors of over $2.5 million through a deceptive investment scheme. The judge also ordered Cameron, 66, to pay restitution of $1,831,700 to his victims.
If Mr. Cameron fails to pay his fine in six months he will have to serve an additional four years in jail for default.
From 2002-2006, Cameron operated a fraudulent RRSP scheme which promised a 2% monthly return to individual investors. The scheme raised just under $8 million, but only paid out a total of $882,000 to investors. Cameron misappropriated the funds to support his luxurious lifestyle, including buying property, cars, a horse, and a $75,000 cruise in the Bahamas. He also transferred funds offshore to Barbados.
A Canada Revenue Agency (CRA) investigation proved that Cameron diverted $3.9 million of the investors’ funds for his own use and failed to report this as income on his tax returns, evading $1,132,882 in taxes.
“I have no doubt whatsoever that [Cameron] executed a deceptive investment scheme with subjective knowledge of the prohibited act and consequences,” said presiding judge, Justice P.R. Jeffrey, in his written reasons for convicting Cameron. “The CRA acted towards him with considerable patience, forbearance and fairness. He was given ample opportunity to provide to CRA any plausible alternate explanation for what occurred, yet did not.”
Justice Jeffrey commented in his sentencing report: “The $1,831,700 I have ordered payable in restitution should be subtracted from his [Cameron] total taxable income… therefore I find his taxable income to have been $2,118,817.”
Cameron was convicted of tax evasion under the Income Tax Act and fraud under the Criminal Code.
Sentencing took place today at the Court of Queen’s Bench in Calgary.
You can report suspected tax evasion to the CRA by visiting https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/informant-leads-program.html or by calling the National Leads Centre at 1-866-809-6841.
All case-specific information in this news release was obtained from the court records.
Did you know that between April 1, 2012, and March 31, 2017, total domestic and offshore related criminal investigations have resulted in 408 convictions involving $122 million in federal tax evaded and court sentences totaling approximately $44 million in court fines and 3,103 months in jail?
The Canada Revenue Agency (CRA) has reported that a Victoria, BC man, Richard Stanchfield, has been handed a 14-month conditional jail sentence (including 9-months of house arrest) for income tax evasion and for counselling others to commit fraud.
Stanchfield has been ordered to pay $31,000 in outstanding tax on his own income over a 5-year period.
The CRA has stated that Stanchfield promoted himself as “educator” at a firm called the Paradigm Education Group, which claimed to advise clients of methods of restructuring personal finances to avoid having to pay tax.
In line with their view on tax schemes and scams, the CRA warns consumers to beware individuals who “try to convince you that you do not have to pay tax on earned income”.
If it seems too good to be true, it is!
I cannot stress enough the importance of opening mail from the government, all governments, especially the Canada Revenue Agency (CRA). Of more importance, if the CRA is looking for information, or tax returns, or if the notices are getting progressively more threatening, it’s a very good sign that you may need to speak to a professional to determine how to best proceed.
The CRA regularly issues press releases regarding tax evasion, and they have a link on their website related to convictions, here; http://www.cra.gc.ca/convictions.
The Canada Revenue Agency (CRA) announced today that on July 2, 2014, Jamil Barakat and 1441126 Ontario Inc. both of London, Ontario, were sentenced in the Ontario Court of Justice in London to a fine of $43,070. On November 8, 2013, Barakat and 1441126 Ontario Inc. pleaded guilty, in the same court, to two counts of income tax evasion each. 1441126 Ontario Inc. also pleaded guilty to three counts of evading GST/HST. The fine represents 100% of the total taxes evaded. The fine has since been paid in full.
A CRA investigation revealed that 1441126 Ontario Inc., operating as Barakat Restaurant, failed to report $259,624 in taxable income on its 2007 and 2008 returns, which resulted in the evasion of $27,054 in federal corporate taxes. The corporation also understated its net GST payable for three quarterly periods in 2007, thereby evading an additional $2,976 in GST. The investigation also revealed that Jamil Barakat, in his role as director of 1441126 Ontario Inc., failed to report on his 2007 and 2008 personal tax returns $51,678 he appropriated from the restaurant. By doing so Barakat evaded an additional $13,040 in federal income taxes.
The preceding information was obtained from the court records.
When individuals are convicted of income tax and GST/HST evasion, they must still repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the CRA. In addition, the court may fine them up to 200% of the taxes evaded and impose a jail term of up to five years.
If you have ever made a tax mistake or omission, the CRA is offering you a second chance to make things right through its Voluntary Disclosures Program (VDP). If you make a valid disclosure before you become aware that the CRA is taking action against you, you may only have to pay the taxes owing plus interest. More information on the VDP can be found on the CRA’s website at http://www.cra.gc.ca/voluntarydisclosures.
For a free 15-minute consultation, call or email inTAXicating Tax Services at info@firstname.lastname@example.org. We can be reached at 416.833.1581.