Canada Revenue Agency - Toronto Tax Services Office

Canada Revenue Agency - Toronto Tax Services Office

September 22, 2005 15:23 ET

Canada Revenue Agency: House arrest and $540,00 fine for tax evasion

BRAMPTON, ONTARIO--(CCNMatthews - Sept. 22, 2005) - A Brampton businessman was fined $540,000 in the Ontario Court of Justice after pleading guilty to three counts of evading income taxes and four counts of evading the goods and services tax (GST).

Ronald Anthony Robinson was also handed an 18-month conditional sentence that includes eight months house arrest and 150 hours of community service.

The Canada Revenue Agency (CRA) investigation revealed that, between 1995 and 1999, Mr. Robinson, sole shareholder and director of Bramalea Fire Protection Systems Co. Ltd. and Collins Fire Protection Company Ltd., carried out a scheme to evade federal taxes with the assistance of his bookkeeper. Mr. Robinson's businesses are involved in the installation, monitoring, and maintenance of sprinkler and fire alarm systems.

The scheme involved falsifying business books and records and filing false tax information in order to reduce both his personal income taxes and the corporate income taxes and to evade the payment of GST. As well, he directed the business to pay for personal expenses such as credit cards, lines of credit, personal mortgages, and property taxes.

Mr. Robinson also failed to report personal taxable capital gains. In all he did not report $932,292 of income and overstated the business expenses by $740,673. He also did not report and remit $334,905 in GST.

"Tax evasion costs all of us," said John McCallum, Minister of National Revenue. "The system works only when all Canadians are paying their required share of taxes."

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.

Contact Information

  • Canada Revenue Agency
    Peter Delis
    Communications Manager
    (416) 512-4135