Canada Revenue Agency - Toronto Tax Services Office

Canada Revenue Agency - Toronto Tax Services Office

March 29, 2007 13:43 ET

Canada Revenue Agency: Minden Tavern Owner and his Corporation fined $70,000 for Tax Evasion

LINDSAY, ONTARIO--(CCNMatthews - March 29, 2007) - David Willis of Minden, Ontario, and 649510 Ontario Limited, operating as Rockcliffe Tavern, pleaded guilty to one count each of income tax evasion, in the Ontario Provincial Court on March 29, 2007. Mr. Willis was fined $60,000, and 649510 Ontario Limited was fined $10,000.

A Canada Revenue Agency (CRA) investigation revealed that Mr. Willis, owner of 649510 Ontario Limited, operating as Rockcliffe Tavern, understated the corporation's taxable income by more than $120,000 in the taxation years 1998 to 2002. Furthermore, Mr. Willis failed to report in excess of $80,000 of rental income and interest income he earned from private loans and mortgages during the same period. Finally, the CRA investigation determined that Mr. Willis was using corporate funds for his personal benefit, vacations and recreational vehicles, and failed to report the income on his personal income tax returns.

"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" said Mr. Miklos, Assistant Director of Enforcement for the local tax services offices. 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 also be found in the Media room on the CRA website at www.cra.gc.ca

Contact Information

  • Canada Revenue Agency
    Sam Papadopoulos
    Media Information
    (416) 275-4823
    Website: www.cra.gc.ca