TORONTO, ONTARIO--(Marketwire - Nov. 18, 2011) - Etobicoke Motors Inc., formerly of Toronto but currently located in Mississauga, pleaded guilty in the Ontario Court of Justice in Toronto on November 16, 2011, to four counts of income tax evasion, and 16 counts of GST evasion. The company was sentenced to a $ 128,720 fine which was paid immediately. The fine is in addition to any taxes and interest owed, as well as any civil penalties that may be assessed by the Canada Revenue Agency (CRA).
A CRA investigation revealed that Etobicoke Motors Inc., a used car dealership, failed to report $326,039 in business income on its 2003 to 2006 corporate income tax returns. The investigation further discovered that the company failed to report and remit GST, thereby evading $72,223 for quarterly filing periods from January, 2003 to December, 2006. The total amount of taxes evaded by the company during the taxation years 2003-2006 is $114,999.
"Canadian taxpayers must have confidence in the fairness of the tax system," said Darrell Mahoney, Assistant Commissioner of the Canada Revenue Agency for the Ontario Region. "To maintain that confidence, the CRA is determined to hold tax evaders accountable for their actions."
The information in this news release was obtained from the court records.
Individuals who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They will not be penalized or prosecuted if they make a full disclosure before the Agency starts any action or investigation against them. These individuals may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.
When individuals or corporations are convicted of tax evasion, they have to pay the full amount of tax owing, plus interest, and any penalties the CRA assesses. In cases of gross negligence, the Income Tax Act and Excise Tax Act allow the CRA to assess a penalty of up to 50% of the unpaid tax or the improperly claimed benefit. In addition, the court may, on summary conviction, fine them 50% to 200% of the tax evaded, and sentence them to a jail term of up to two years.
Further information on convictions can also be found in the Media Room on the CRA website at www.cra-arc.gc.ca/convictions/.