Canada Revenue Agency

Canada Revenue Agency

February 08, 2010 15:01 ET

Canada Revenue Agency: Oakville Resident Receives Hefty Fine for Tax Evasion

MILTON, ONTARIO--(Marketwire - Feb. 8, 2010) - Michael McGuire, of Oakville, pled guilty on February 2, 2010 in the Ontario Court of Justice in Milton, to two counts of tax evasion. McGuire received a fine of $65,968. The fine is in addition to any taxes and interest owed, as well as any civil penalties that may be assessed by the Canada Revenue Agency (CRA).

McGuire, a self-employed consultant, failed to report income he earned from consulting services he provided as a subcontractor. McGuire failed to report sales totalling $195,069 for the 2003 and 2004 tax years. These unreported sales resulted in McGuire evading the payment of federal income taxes of $52,314 and GST totaling $13,654.

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.

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

Further information on convictions can be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

Contact Information

  • For media information:
    Canada Revenue Agency
    Ontario Region Communications
    Andy Meredith
    Communications Manager
    905-615-2838