Canada Revenue Agency

Canada Revenue Agency

November 06, 2007 13:43 ET

Meat Distribution Company's Beef With the CRA Results in $1,075,324 in Tax Evasion Fines

OTTAWA, ONTARIO--(Marketwire - Nov. 6, 2007) - Two Ottawa corporations were fined a total of $1,075,324 yesterday in the Ontario Court of Justice in Ottawa. Capital Beef Corporation, a meat distribution company, and a related holding company, Danbar Holdings (Ottawa) Limited, both pleaded guilty to one count each of tax evasion under the Income Tax Act.

A Canada Revenue Agency (CRA) investigation revealed that Capital Beef Corporation failed to report taxable income in the amount of $2,385,442 for the 1990, 1991, 1993, 1994, 1995 and 1996 tax years. The corporation failed to report income from cash sales and interest earned from money lending. The investigation also determined that a related corporation, Danbar Holdings (Ottawa) Limited failed to report taxable income from cash sales of $138,248 for the 1990 tax year.

Capital Beef Corporation pleaded guilty to one count of tax evasion in the amount of $677,029, and was fined 150% of the evaded amount totalling $1,015,544. Danbar Holdings (Ottawa) Limited also pleaded guilty to one count of tax evasion in the amount of $39,853, and was fined 150% of the evaded amount totalling $59,780. The total fine of $1,075,324 was paid upon conviction.

"Tax evasion takes money away from the services that benefit all Canadians," said William V. Baker, Commissioner of the CRA. "The CRA takes action against those who try to avoid paying what they owe."

Individuals or corporations who are convicted of tax evasion have to pay the full amount of taxes owing, plus interest, and any penalties the CRA assesses. In addition, the court may, on indictment, fine them between 100% and 200% of the taxes evaded and sentence them to a five-year jail term. Under the Income Tax Act, the CRA may also assess a penalty of up to 50% of the taxes evaded or the benefit improperly claimed.

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 http://www.cra-arc.gc.ca/convictions/.

Contact Information

  • Media information:
    Canada Revenue Agency
    Jelica Zdero
    Manager, Communications
    (905) 615-2126