Tax Evasion Deterrent: Jail and Penalties

It’s not unusual for the CRA to distribute information about tax evasion at the start of the tax season; after all it’s a great reminder of the stiff consequences for those who intentionally defraud the government, like a West Vancouver resident recently did.   

Last month, Michael Scholz of West Vancouver was sentenced to 29 months in jail and fined $644,975.71. He was found guilty of three counts of committing tax-related offences under the Excise Tax Act and two counts of uttering forged documents under the Criminal Code, in the Provincial Court of British Columbia (Robson Square).

His tax crime unfolded this way:   Mr. Scholz submitted forged documents to obtain benefits relating to the construction of a West Vancouver home. Mr. Scholz forged a bare trust agreement to conceal the property's true ownership and to support his claim of ineligible input tax credits related to the costs for the residence's construction and design.

Mr. Scholz also forged a lease agreement to decrease the CRA's assessed value of the property in an attempt to reduce taxes owed.

Additional educational resources: Professionals need to be precise when filing. Having fast, authoritative access to tax questions helps down the line at tax audit time, too. That’s the role of Evergreen Explanatory Notes, available 24/7, in your professional toolkit.  Knowledge Bureau’s Evergreen Explanatory Notes are your go-to reference – a sleek online tax library for fast, reliable answers to personal, corporate tax and the GST/HST. Included are quick links to the relevant government publications: the Income Tax Act, CRA forms, publications, Folios and more… everything you need to make informed decisions about critical audit-proof tax questions taxpayers have for you this tax season. It’s your opportunity to help Canadians remain above board with the CRA!


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