Canada Revenue Agency

Canada Revenue Agency

June 22, 2010 17:52 ET

Local Homebuilder Guilty of Tax Evasion

KITCHENER, ONTARIO--(Marketwire - June 22, 2010) - On June 16, 2010, Gold Seal Homes (K-W) Inc. and its sole director and shareholder, Dumitru Lazar, pled guilty in the Ontario Court of Justice in Kitchener to four counts of tax evasion. Gold Seal was fined a total of $29,717 and Lazar was fined a total of $75,280 representing 50% of the federal taxes evaded. The court fines are in addition to any taxes and interest owed, as well as any civil penalties that may be assessed by the Canada Revenue Agency. 

The CRA investigation revealed that Lazar built and sold 15 houses, while reporting the sale of only one house. He failed to report a total of $474,599 in taxable income and evaded income tax totaling $113,934. In addition, he failed to report and remit GST in 2001 and 2002 totalling $36,626.

Furthermore, Gold Seal paid $107,849 for the construction of Lazar's personal residence. Gold Seal failed to report and remit GST totaling $39,735 from 2002 through 2005, and underreported its income by $107,849 during the same period, evading income tax totaling $19,698.

The investigation determined that Lazar had sole signing authority for Gold Seal's bank account, was responsible the information provided in the filing of Gold Seal's, returns and directed Gold Seal to pay for the personal, non-deductible expenses related to the cost of building his personal residence. 

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

Contact Information

  • For media information: Canada Revenue Agency
    Neil Shalapata
    Manager, Communications
    (416) 952-8051
    www.cra.gc.ca