Pietrangeli sold scrap metal and salvaged parts from scrap automobiles as well as purchased the same at his place of business, Napanee Scrap Metal and Auto Parts. In January 2009, Canada Revenue Agency began an investigation. It was shown that Pietrangeli concealed revenue by withholding relevant books and records from his tax preparer. His bookkeeper was mislead by Pietrangeli into believing he sold to company for the years 2004 – 2006.

The Canada Revenue Agency also found false business expenses were being claimed, and some income was actually claimed as expenses.

Pietrangeli tried to avoid paying $80,455 in federal taxes during 2004 – 2005 by not reporting sales totaling $671,394. He also did not remit $118,838 in GST for the years 2004 – 2006.

During an investigation by Canada Revenue Agency, it was revealed that Faiz prepared false tax returns and false donation claims. During the years 2004 – 2008, he falsified documents on behalf of his 52 clients which understated their federal taxes by $575,971, thereby increasing their tax refunds.

The names of four charities on the falsified donation slips were City Chapel Ministries International, Destiny Ministries International Christian Mission, Pan African Canadian Multicultural Centre and Ave Development Foundation. They had their charity status revoked by CRA.

Canada Revenue Agency found that Khan also filed fraudulent tax returns of his own from 2004 – 2007 by not reporting income from his business and included false donation claims. He evaded a tax payment of $249,000 when he failed to report $984,594 to Canada Revenue Agency.

The charges related to the 2003 through 2006 taxation years.  Medd has income from several sources including bookkeeping, accounting, tax preparation and consulting work, the sale of puppies and farm income.  After a routine audit the CRA instigated an investigation which included a search of Medd’s residence, as authorized by a search warrant.  It became evident from Medd’s bank and business records that Medd had failed to report personal income of $208,288 during the years in question.  He also failed to file GST returns  for the same period of time, thereby evading $14,250 in GST.

As President and General Manager of Douglas Braund Investments (Kingston) Limited, Mr. Braund kept the books and records for the Company, which operates the bus terminal on John Counter Boulevard in Kingston, Ontario.  The GST returns filed were, in part, based on the records that Braund maintained.  When the CRA conducted an audit it became evident ath false Input Tax Credits were being claimed and that the GST claimed on returns was being considerably less than was warranted.  Based on these findings, the auditor transferred the file to the Enforcement Division for further action.

In a subsequent CRA investigation it became apparent that by creating fictitious entries in the Company books Braund was falsifying the Input Tax Credit Claims.  The

Morrison, a masonry contractor operating in the Owen Sound area, had substantial income which he failed to report during the 2003 and 2004 taxation years.  This fact was discovered during an audit by the CRA’s Underground Economy Section.  As a result of this finding, the file was referred to the CRA’s Enforcement Division, who subsequently expanded the investigation to encompass the 2005, 2006 and 2007 taxation years.  Total federal income tax evaded was $61,173 and the total GST evaded totaled $33,514 during the period of 2003 to 2007.

Upon conviction of tax evasion all taxes, interest and CRA penalties must be paid.  Where gross negligence has occurred the CRA has the authority to assess a maximum penalty of 50% of the unpaid

An investigation by the Canada Revenue Agency (CRA) revealed that while all of Ms. Clement’s work was performed for the same client, some of the invoices issued were in the name of a U.S. corporation owned solely by Clement.  The client was asked to wire payments for these invoices to the bank account for the U.S. corporation.   Only the income paid for in Canada was declared on Clement’s personal tax returns.  The income diverted to the U.S. bank account was used to pay for personal expenditures.  The total annual personal expenditures exceeded the income reported on personal tax returns.  During the

The CRA’s Voluntary Disclosure Program allows taxpayers to file delinquent returns or claim previously unreported income without fear of prosecution or penalty, if the returns are filed and the income is declared prior to any action or investigation being initiated by the CRA.

A self employed trucker who hauls scrap metal, Davies neglected to file his personal tax returns for 2003 to 2005.  He also failed to file the annual Goods and Services Tax Return for the 2003 taxation year.  Mr. Davies filed all delinquent returns prior to pleading guilty.

Had Mr. Davies known about the Canada Revenue Agency’s Voluntary Disclosure Program he might have been able to avoid CRA penalties and prosecution.  Under this Program, if the CRA has not initiated compliance action the taxpayer can submit all unremitted tax returns and claim previously undisclosed income.  As a result of filing and/or reporting under the Program, the taxpayer may only be required to pay the taxes and interest owing.

Mr. Hersey owned a company that sold insurance products and investment vehicles, Professional Insurance Management Inc.  He controlled a second firm, Global Export Consulting.  This second firm provided logistical support to Envision Global Charity, a charity operating in Cuba, which Hersey helped found.

In 2003 and 2004 the two companies produced income for Hersey in the amount of $187,395.  The income, not reported on tax returns, was used for living expenses, legal judgments and loans and was shared with Hersey’s wife.

Mr. Hersey was the financial advisor and tax preparer for two individuals.  These individuals invested $326,000 through Hersey and subsequently discovered that their investments were worthless.  False charitable donation receipts were provided by Hersey totaling over $43,000 under the name of Envision Global Charity, a charity which Hersey helped found.  Hersey included the false receipts when he prepared the tax returns for the two individuals.  Envision Global Charity’s charitable status was revoked effective August 18, 2007, after a CRA audit of the organization.

CRA penalties and/or prosecution can be avoided by filing outstanding tax returns and/or reporting previously undisclosed income under the Voluntary Disclosure Program.  The Program is open to all, provided that the CRA has not initiated any action or investigation against the taxpayer.

As a self-employed sales agent, Mr. Spooner operated a business in the Windsor area, J B & B Enterprises.  For the quarter ending March 31, 2003, Spooner had made false statements on the GST return for his business.  The net GST owed was understated by $1,312.  There was also a failure to file eleven consecutive quarterly returns from April 2003 to December 2005 and the GST owing for this period of time was not remitted.  Total GST evaded was $18,396.

In all such cases, upon conviction, all taxes owing, plus interest, Canada Revenue Agency (CRA) penalties and Court fines must be paid.  It should be noted that the Court may impose a fine of up to 200% of the taxes evaded as well as a jail sentence of up to five years.

If full disclosure is made under the Voluntary Disclosure Program, it is possible that the taxpayer will avoid penalties and/or prosecution by the CRA.  Under this Program delinquent returns can be filed and previously unreported income can be disclosed, provided that the CRA has not taken action or initiated an investigation against the taxpayer.