Fishing bait supplier fined for GST evasion
Panagiotis Tourikis of Toronto pled guilty on August 31, 2009 on three counts of failing to remit GST. There was a $72,000 fine from the Ontario Court of Justice in Toronto. The fine is in addition to taxes and interest due.
CRA investigated Mr. Tourikis and discovered that he failed to remit $140,616 in GST that was charged and collected during the years 2002 to 2004. The GST was charged and collected on worm sales made to several wholesalers in Ontario.
If Mr. Tourikis applied under the voluntary disclosure program before CRA began their investigation, there would be no penalties or prosecution. There would only be interest and taxes due.
If an individual or a corporation is convicted of tax evasion, they have to pay the full amount of tax owing, plus interest, and any penalties that is assessed by CRA. If there is a gross negligence penalty, the Income Tax Act and Excise Tax Act allow CRA to assess an additional 50% penalty of the unpaid tax. In addition, the court on summary conviction could fine them 50% to 200% of the tax evaded and sentence them to jail for up to two years.
