Tax news: CRA Holding Tax Evaders Feet To The Fire

Canada Revenue Agency holds tax evaders responsible for their actions and the consequences can be serious, as a Markham, Ont., taxpayer recently found out. Taxpayers who claim false expenses, credits or rebates are liable not only for correcting their tax returns and paying the full amount of tax owing, but also for penalties and interest. In addition, if convicted of tax evasion, offenders can be fined up to 200% of the tax evaded and sentenced up to five years in jail.

That's exactly what happened to Brothers & Wright Electrical Services Inc. On November 11, the Markham firm pleaded guilty to one count of evading GST under the Excise Tax Act and one count of federal income tax evasion under the Income Tax Act. Brothers & Wright was fined $165,822, representing 200% of the total amount evaded, and given until November 30, 2012, to pay the fine (www.cra-arc.gc.ca/nwsrm/cnvctns/on/on111130-eng.html).