Canada Revenue Agency - Toronto Tax Services Office

Canada Revenue Agency - Toronto Tax Services Office

January 12, 2007 16:55 ET

Canada Revenue Agency: Former Executive Director of Charitable Organization Fined for Tax Evasion

NEWMARKET, ONTARIO--(CCNMatthews - Jan. 12, 2007) - Frederick Joseph Cawthorpe, of Thornhill, Ontario, was found guilty on one count of income tax evasion and four counts of goods and services tax (GST) evasion in the Ontario Court of Justice in Newmarket today. He was fined $52,220.

"Canadian taxpayers must have confidence in the fairness of the tax system," said the Commissioner of the Canada Revenue Agency, Michel Dorais. "To maintain that confidence, the Canada Revenue Agency is determined to hold tax evaders accountable for their actions."

A Canada Revenue Agency (CRA) investigation revealed that Cawthorpe failed to report $263,674 in taxable income received between 1995 and 1998. The unreported income was received while he was under contract as Executive Director of a charitable organization. The investigation further revealed that he failed to remit $22,587 in GST for the years 1995 to 1998.

The fine represents 60% of the $64,447 in federal income tax, and $22,587 in GST, that he attempted to evade.

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. Under the Income Tax Act, 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 www.cra.gc.ca.

Contact Information

  • For media information:
    Canada Revenue Agency
    Peter Delis
    (416) 512-4135
    Website: www.cra.gc.ca