Canada Revenue Agency

Canada Revenue Agency

September 21, 2009 12:33 ET

Canada Revenue Agency: General Contracting Company Fined For GST Evasion

NEWMARKET, ONTARIO--(Marketwire - Sept. 21, 2009) - Walter Pontiero General Contracting Ltd., of King City, pleaded guilty on September 17, 2009 to one count of GST evasion. He was fined $91,063 in the Ontario Court of Justice in Newmarket.

"Canadians have to be confident that the administration of the tax system is fair," said William V. Baker, Commissioner of the Canada Revenue Agency. "That's why the Agency works to ensure that the vast majority of Canadians who pay their taxes are not penalized by those who don't."

A Canada Revenue Agency (CRA) investigation revealed that Walter Pontiero General Contracting Ltd., a subcontractor to homebuilders, filed GST returns for the reporting periods July 31, 2002 to April 30, 2005, in which total sales of the business were under-reported by over $2.75M. By doing so, the company understated the GST it collected on its sales by $198,238, and understated its Input Tax Credits by $107,174, resulting in $91,063 GST evaded.

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

The Agency seeks publicity on convictions to maintain public confidence in the integrity of the self-assessment system and to increase compliance with the law through the deterrent effect of media coverage.

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.

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-arc.gc.ca/convictions/

Contact Information

  • Canada Revenue Agency
    Peter Delis
    416-512-4135