Canada Revenue Agency - Toronto Tax Services Office

Canada Revenue Agency - Toronto Tax Services Office

October 20, 2005 16:42 ET

Canada Revenue Agency: Drywall Finisher Fined for Tax Evasion

OSHAWA, ONTARIO--(CCNMatthews - Oct. 20, 2005) - An Oshawa sub-contractor was fined $11,650 in the Ontario Court of Justice after pleading guilty to six counts of income tax evasion. Mr. Russell Mullen was given twelve months to pay the fine. The fine represents 50% of the income tax evaded.

The Canada Revenue Agency (CRA) investigation revealed that, between 1999 and 2001, Mr. Mullen failed to report $137,000 of income received from a general contractor for whom he was doing work. An audit of the general contractor revealed that over a period of 31 months Mr. Mullen received weekly cheques from the general contractor for drywall-finishing work he did. Mr. Mullen cashed the cheques from the contractor at a cash discounter to conceal his income. By filing false returns Mr. Mullen evaded paying $23,000 of income tax on his unreported income.

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.

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