Canada Revenue Agency

Canada Revenue Agency

November 06, 2007 17:23 ET

Canada Revenue Agency: Delhi Business Consultant and Spouse Fined $166,064 in Tax Evasion Fines

TORONTO, ONTARIO--(Marketwire - Nov. 6, 2007) - Michael Paul Zuk was found guilty yesterday in the Ontario Court of Justice in Toronto of one count of tax evasion and two counts of failing to file an income tax return. He was fined $164,574, received an 18-month conditional sentence and is required to perform 100 hours of community service.

On May 9, 2007, Mr. Zuk's spouse Madeleine Zuk, was found guilty of one count of failing to file an income tax return. The couple was fined a total of $166,074.

A Canada Revenue Agency (CRA) investigation revealed that Mr. Zuk, who worked as a self-employed business consultant, helped companies to develop products and raise capital. Mr. Zuk operated a number of brokerage and bank accounts under his name and the names of companies that he owned. He earned his income by selling the companies' shares. As Mr. Zuk failed to file his personal tax returns, the CRA relied upon a procedure commonly known as the "net worth method" to determine his income. The CRA determined that Mr. Zuk failed to report $525,908 in income in the 1996 tax year.

The CRA also determined that Mrs. Zuk, a self-described gardener, failed to file her personal tax return for the 1996 taxation year. On May 9, 2007, Mrs. Zuk was found guilty in the Ontario Court of Justice in Toronto of one count of failing to file an income tax return, and was fined $1,500.

"Tax evasion takes money away from the services that benefit all Canadians," said William V. Baker, Commissioner of the CRA. "The CRA takes action against those who try to avoid paying what they owe."

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 addition, the court may, on summary conviction, fine them up to 200% of the tax evaded and sentence them to a two-year jail term. The CRA may also assess a penalty of up to 50% of the tax evaded or the benefit 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
    Jelica Zdero
    Manager, Communications
    (905) 615-2126