Canada Revenue Agency - Toronto Tax Services Office

Canada Revenue Agency - Toronto Tax Services Office

January 24, 2007 15:49 ET

Canada Revenue Agency: Real Estate Agent Fined $98,050 for Tax Evasion

ORANGEVILLE, ONTARIO--(CCNMatthews - Jan. 24, 2007) - Desmond Allen, of Caledon Ontario, pleaded guilty to six counts of income tax evasion and Goods and Services Tax (GST) evasion and six counts of filing falsified returns, in the Ontario Provincial Court. Mr. Allen was fined $98,050 and was given twenty-eight months to pay the fine.

"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 Mr. Allen, a real estate agent, under- reported his income on his 2000 personal income tax return by $100,050. Mr. Allen also claimed rental losses on properties he did not own and personal expenses as business expenses, thus reducing his taxable income for the years 1998-2000 by approximately $383,713. By doing so Mr. Allen evaded paying $117,546 in personal income tax.

Furthermore, Mr. Allen overstated the GST input tax credits by $11,782 and under-reported the amount of GST collected by $10,744. By doing so he failed to remit GST refunds totaling $22,526.

Individuals or corporations convicted of tax evasion, still have to pay the full amount of tax owing, plus interest, and any penalties the CRA assesses. In addition, the court may 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 they tried to evade.

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 or (416) 973-4163