Canada Revenue Agency - Toronto Tax Services Office

Canada Revenue Agency - Toronto Tax Services Office

October 14, 2005 15:38 ET

Canada Revenue Agency: Window Manufacturer Jailed and Fined $107,057 for Tax Evasion

TORONTO, ONTARIO--(CCNMatthews - Oct. 14, 2005) - George Pappas, a Richmond Hill resident, was fined a total of $107,057 in the Ontario Court of Justice after being found guilty on five counts of income tax evasion, and eight counts of goods and services tax (GST) evasion. He also received a 30 day jail sentence.

"Tax evaders force honest Canadians to pay more than their required share," said John McCallum, Minister of National Revenue. "The Canada Revenue Agency will take action against those who try to avoid paying what they owe."

The Canada Revenue Agency (CRA) discovered that the doors and windows manufacturing company that Mr. Pappas controlled understated sales using a scheme whereby deposit slips were duplicated and altered to show large customer payments as if they were loans from George Pappas instead of company sales. As a result, Mr. Pappas understated his personal income on his tax return by $371,527. This resulted in $113,306 personal income tax being evaded and $73,808 corporate tax being evaded. Mr. Pappas was fined 50% of the amount of income tax evaded.

The company Mr. Pappas controlled also failed to remit GST collected on sales of doors and windows. He was fined a further $13,500, representing 50% of the GST that the company did not remit.

The fines are in addition to any taxes and interest owed, as well as any civil penalties that may be assessed by the CRA.

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