Canada Revenue Agency

Canada Revenue Agency

August 13, 2008 16:06 ET

Canada Revenue Agency: Medical Supplies and Services Provider Fined for Tax Evasion

NEWMARKET, ONTARIO--(Marketwire - Aug. 13, 2008) - Michael Kishinevski, of Thornhill, pleaded guilty August 12, 2008 in the Ontario Court of Justice in Newmarket to two counts of tax evasion. He was fined $28,344 for evading $56,689 of federal income tax. The fine is in addition to any taxes and interest owed, as well as any civil penalties that may be assessed by the Canada Revenue Agency (CRA).

Mr. Kishinevski, sole proprietor of 4U Medical Supplies, provided medical supplies and services to the public. Through an independent third party audit of 4U Medical Supplies, the CRA was alerted that the company may have been suppressing its income. A CRA investigation discovered that Mr. Kishinevski failed to report $217,549 on his 2000 and 2001 personal income tax returns.

The CRA will challenge non-compliance with tax laws. However, individuals 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 will not be penalized or prosecuted if they make a full disclosure before the Agency starts any action or investigation against them. These individuals 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 website at www.cra-arc.gc.ca/voluntarydisclosures.

The Agency seeks publicity on convictions to maintain public confidence in the integrity of the self-assessment system and to increase compliance with the law through the deterrent effect of media coverage.

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

Contact Information

  • Peter Delis
    Communications Manager
    (416) 512-4135