Lakefield plumber fined $173,907 for tax evasion
Joseph Berardi of Lakefield Ontario pled guilty in the Ontario Court of Justice in Peterborough on one count of income tax evasion. Mr. Berardi was fined $173,907 which represents 100% of the taxes due. The fine is in addition to any taxes and interest owed, as well as any civil penalties that may be assessed by CRA.
CRA’s investigation revealed that Mr. Berardi neglected to disclose the rental income that his company earned and that he appropriated the funds in the 2001 to 2003 tax years. The total unreported income amounted to $642,221 over the three years and thus attempted to avoid paying $173,907 in taxes.
In cases of gross negligence, CRA can assess a penalty of 50% of the unpaid tax. In addition, the court may on summary conviction charge a fine in the amount of 50% to 200% of the tax evaded and impose a jail sentence of up to two years. Consequently, the total penalties on tax evasion can reach up to 250%.
If Mr. Berardi applied under the voluntary disclosure program before CRA began their investigation, then he would have had to pay the taxes and interest and would avoid prosecution and penalties.
