Canada Revenue Agency

Canada Revenue Agency

May 08, 2009 15:51 ET

Canada Revenue Agency: Oshawa Convenience Store Owner Fined Over $116,000 for Tax Evasion

OSHAWA, ONTARIO--(Marketwire - May 8, 2009) - Nallathamby Srinijakaran, of Whitby, was found guilty in the Ontario Court of Justice in Oshawa on May 7, 2009 to three counts of income tax evasion and three counts of failing to remit GST. He was fined $116,233. 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).

"The Canada Revenue Agency pursues tax evaders to maintain public confidence in the integrity of the tax system," said William V. Baker, Commissioner of the Canada Revenue Agency. "Canadians have to trust that our self-assessment system is working and that it is fair."

A CRA investigation revealed that Srinijakaran, sole proprietor of Smokey Way, an Oshawa convenience store, failed to report business income totalling $593,892 on his 2001 to 2003 personal tax returns. By doing so, he evaded paying federal income taxes totaling $190,895. The investigation further revealed that he failed to remit $41,572 in GST for various reporting periods from 2001 to 2003.

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.gc.ca/voluntarydisclosures.

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

Contact Information

  • Media information:
    Canada Revenue Agency
    Peter Delis
    416-512-4135