Canada Revenue Agency - Belleville Tax Services Office

Canada Revenue Agency - Belleville Tax Services Office

November 09, 2007 15:41 ET

Belleville Businessman Fined $80,000 for Tax Evasion

BELLEVILLE, ONTARIO--(Marketwire - Nov. 9, 2007) - Leonard Vigodda, controlling officer of 930222 Ontario Inc., pleaded guilty today to two counts of tax evasion in the Ontario Court of Justice in Belleville. Mr. Vigodda was fined $80,000, which represents 135% of the federal taxes he evaded.

A Canada Revenue Agency (CRA) investigation determined that Mr. Vigodda failed to report taxable benefits received in 1997 as a condition of the sale of shares owned by the corporation. Mr. Vigodda received office equipment, cash, and a 1995 Mercedes Benz automobile in exchange for the termination of his employment. He also failed to report income received from a registered retirement savings plan (RRSP) by not filing his 1999 personal income tax return.

"Canadian taxpayers must have confidence in the fairness of the tax system," said the Commissioner of the Canada Revenue Agency, William V. Baker. "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 tax owing, plus interest, and any penalties the CRA assesses. In cases of gross negligence, the Income Tax Act and Excise Tax Act allow the CRA to assess a penalty of up to 50% of the unpaid tax or the improperly claimed benefit. In addition, the court may, on summary conviction, fine them 50% to 200% of the tax 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-arc.gc.ca/convictions.

Contact Information

  • For media information:
    Canada Revenue Agency
    Peter Delis
    Communications
    (416) 512-4135