Canada Revenue Agency - Toronto Tax Services Office

Canada Revenue Agency - Toronto Tax Services Office

December 20, 2006 12:35 ET

Canada Revenue Agency: Bricklayer and Company Receive Heavy Fine for Tax Evasion

TORONTO, ONTARIO--(CCNMatthews - Dec. 20, 2006) - C L Masonry Ltd of Toronto, and Antonio Coelho of Mississauga, a former Director of the company, were fined $157,290 in the Ontario Court of Justice in Toronto today after pleading guilty to income tax evasion.

"The Canada Revenue Agency pursues tax evaders to maintain public confidence in the integrity of the tax system," said Michel Dorais, Commissioner of the Canada Revenue Agency (CRA). "Canadians have to trust that our self-assessment system is working and that it is fair."

The CRA investigation revealed that C L Masonry Ltd., a sub-contract construction company that provided bricklaying services to several residential construction companies in the Toronto area, failed to report $481,164 of net income received from construction projects on its 2001 corporate income tax return. The undeclared amount was deposited into a secondary business bank account that was not recorded in the company's books and records.

The court heard that Mr.Coelho failed to report $72,746 and $320,005, respectively, on his 2000 and 2001 personal income tax returns. These amounts represent income that was taken from the secondary business bank account of C L Masonry Ltd.

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 addition, the court may fine them up to 200% of the tax evaded and sentence them to a two-year jail term. The CRA may also assess a penalty of up to 50% of the tax 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

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