Canada Revenue Agency - Toronto Tax Services Office

Canada Revenue Agency - Toronto Tax Services Office

January 12, 2007 16:31 ET

Restaurant Owner Fined $140,875 for Tax Evasion

TORONTO, ONTARIO--(CCNMatthews - Jan. 12, 2007) - Chun Shing Lam of Scarborough was fined $140,875 in the Ontario Court of Justice today after pleading guilty to one count of income tax evasion and one count of goods and services tax (GST) evasion. The fine represents 100% of the taxes evaded.

Mr. Lam, also known as Bowie Lam, was the sole shareholder of 1146888 Ontario Ltd., operating as Oriental Buffet Restaurant. A Canada Revenue Agency (CRA) investigation revealed that Mr. Lam maintained two sets of sales records for food and alcohol for each business day. An analysis of both sets of records determined that certain amounts were not reflected in the business' general ledgers or bank accounts. The CRA obtained information regarding Mr. Lam's net worth through the use of general warrants, which were issued to several financial institutions. Mr. Lam failed to declare income for the 1997 to 1999 tax years and he failed to remit GST for the 1996 to 1999 period. He evaded $140,875 in federal taxes.

"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."

When individuals or corporations are convicted of tax evasion, they have to pay the full amount of taxes owing, plus interest, and any penalties the CRA assesses. In cases of gross negligence, the Income Tax Act and the Excise Tax Act allow the CRA to assess a penalty of up to 50% of the unpaid taxes or the improperly claimed benefit. In addition, the court may, on summary conviction, fine them 50% to 200% of the taxes evaded, and sentence them to a jail term of up to two years.

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.

Contact Information

  • Media information:
    Canada Revenue Agency
    Peter Delis
    (416) 512-4135
    Website: www.cra.gc.ca