Canada Revenue Agency

Canada Revenue Agency

March 25, 2010 15:39 ET

Canada Revenue Agency: 3.5 Years in Jail for Mississauga Tax Preparer Convicted of Fraud

BRAMPTON, ONTARIO--(Marketwire - March 25, 2010) - Shantelle Mohan, of Mississauga, pleaded guilty in Ontario Superior Court of Justice in Brampton to one count of fraud over $5,000 on March 23, 2010. Justice Dumo sentenced her to 42 months in jail.

Mohan, who operated a tax preparation service in Mississauga sometimes operating as New Horizon Estates or Infinite Wealth Consultant Group, prepared 587 false individual income tax returns on behalf of 427 clients for tax years 2001 to 2003. In these tax returns, she claimed false losses, expenses, and charitable donation amounts totalling approximately $13 million. Mohan charged her clients a portion of the total refund calculated as a fee for her services. As a result of the false claims made by Mohan, her clients understated their federal income taxes payable by approximately $2 million, resulting in the Canada Revenue Agency (CRA) issuing refunds to these individuals to which they were not entitled.

A CRA investigation revealed that, as part of Mohan's scheme, she publicized to clients the idea of investing in teak tree farms in Costa Rica, which was actually a fake tax shelter. On the tax returns of her clients, Mohan claimed farming losses, business losses, and rental losses relating to farms they never owned, businesses they never operated, and properties they never rented. Her clients did not sign their tax returns, were not given copies of their tax returns, and were not aware of the losses being claimed in their tax returns. The clients were pleased to receive the large refunds calculated by Mohan, and as agreed, made an investment with her after they received their tax refunds. To some of her clients, Mohan represented herself as someone who "knew all the loopholes," and claimed amounts that were not claimed by previous tax preparers.

Taxpayers who claim false expenses, credits or rebates from the government are subject to serious consequences. They are liable not only for corrections to their tax returns and payment of the full amount of tax owing, but also to penalties and interest. In addition, if convicted of tax evasion, the court may fine them up to 200% of the tax evaded and sentence them for up to a five-year jail term.

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

The CRA reminds Canadians to not be fooled by tax preparers offering larger refunds than other preparers. While most preparers provide excellent service to tax filers, a few unscrupulous return preparers file false and fraudulent tax returns and ultimately defraud their clients. Remember that even if someone else prepares your tax return, you're the one responsible for all the information on the return. If a tax preparer is offering you fraudulent tax preparation services, or if you want to report a tax cheater, you can do so anonymously by calling the CRA at 1-866-809-6841 (toll free).

The information in this news release was obtained from the court records. 

Further information on convictions can also be found in the Media Room on the CRA website at

Contact Information

  • Canada Revenue Agency
    Andy Meredith
    Manager, Communications
    (416) 509-0487