Canada Revenue Agency - Toronto Tax Services Office

Canada Revenue Agency - Toronto Tax Services Office

January 24, 2007 15:40 ET

Canada Revenue Agency: Car Leasing Company Fined $70,000 for Not Remitting GST

NEWMARKET, ONTARIO--(CCNMatthews - Jan. 24, 2007) - C.J. Deacon Ltd. of Markham, Ontario, operating as Unimark Automotive Leasing, pleaded guilty to evading or failing to remit the Goods and Services Tax in the Ontario Provincial Court. The company was fined $70,000 and was given one year to pay the fine.

"Our tax system relies on the honesty of Canadians," said Michel Dorais, Commissioner of the Canada Revenue Agency (CRA). "The CRA is committed to ensuring that everyone pays what they owe."

A Canada Revenue Agency (CRA) investigation revealed that C.J. Deacon Ltd., operating as Unimark Automotive Leasing, under reported the company's sales on its quarterly returns by $ 649,401, thus evading the remittance of $42,485 of GST the company had collected from its clients. Furthermore the company overstated the GST input tax credits by $63,407. By doing so the company received unwarranted GST refunds totaling $63,407.

When individuals or corporations are convicted of obtaining GST refunds to which they are not entitled, they have to repay the GST amount that they obtained, plus interest, and any penalties the CRA assesses. In addition, the court may, on conviction by way of indictment, fine them up to 200% of the tax evaded and sentence them to a five-year jail term. Under the Excise Tax Act, the CRA may assess a penalty of up to 25% of the tax evaded or the rebate improperly claimed.

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
    Sam Papadopoulos
    (416) 275-4823
    (416) 973-4163