Canada Revenue Agency: Hamilton Trucker and Company Guilty of Tax Fraud

HAMILTON, ONTARIO--(Marketwire - Nov. 28, 2012) - The Canada Revenue Agency (CRA) announced today that on November 22, 2012, Zoran Sudar and San Antonio Carriers Corp, both of Hamilton, Ontario, pleaded guilty in the Ontario Court of Justice in Hamilton to a total of two counts of income tax evasion, and one count of Goods and Services Tax (GST) evasion. San Antonio Carriers Corp was fined a total of $115,380 and given nine months to pay. Zoran Sudar is to be sentenced on April 19, 2013.

"Canadian taxpayers must have confidence in the fairness of the tax system," said the Deputy Assistant Commissioner, Ontario Region, of the Canada Revenue Agency, Vince Pranjivan. "To maintain that confidence, the Canada Revenue Agency is determined to hold tax evaders accountable for their actions."

A CRA investigation revealed that for the period 2006 to 2008 Mr. Sudar, owner of San Antonio Carriers Corp., falsified documents and cheques to show payments of approximately $500,000 to a fictitious supplier. The falsified payments were to cover Sudar's personal expenses. By doing so, Sudar failed to report income in excess of $400,000 and San Antonio Carriers Corp., by deducting these falsified expenses, underreported approximately $500,000 in corporate income. By doing so Mr. Sudar evaded $124,000 in personal income taxes. San Antonio Carriers Corp., evaded payment of corporate income taxes of $75,000. San Antonio also claimed input tax credits for these falsified expenses and received $53,841 in GST refunds for the periods from January 2005 to December 2007.

The preceding information was obtained from the court records.

Taxpayers who claim false expenses, credits or rebates from the government are subject to serious consequences. They are liable not only for corrections to their tax returns and payment of the full amount of tax owing, but also to penalties and interest. In addition, if convicted of tax evasion, the court may fine them up to 200% of the tax evaded and sentence them for up to a five-year jail term.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's Web site at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.