Canada Revenue Agency - Toronto Tax Services Office

Canada Revenue Agency - Toronto Tax Services Office

November 17, 2006 10:18 ET

Canada Revenue Agency: Port Hope Businessman Fined Over $56,000 for Tax Evasion

COBOURG, ONTARIO--(CCNMatthews - Nov. 17, 2006) - Geoffrey Thompson of Port Hope, Ontario, was found guilty of tax evasion, after a three-day trial that concluded November 16, 2006 in Ontario Court of Justice in Cobourg. He was fined $56,624.

Mr. Thompson was fined for evading payment of $37,751 in federal income taxes on his 1999 and 2000 personal income tax returns. The fines, which represent 150% of the federal tax he tried to evade, must be paid within one year. In default of payment, the court ordered that Mr. Thompson serve two consecutive terms of 150 days and 200 days in jail.

Mr. Thompson, sole proprietor of GT Group, operated a business that sold roofing systems and provided masonry work services. The court heard that he registered his business in 1998 with the Canada Revenue Agency (CRA) in order to collect goods and services tax (GST), but did not subsequently file the required GST returns. Mr. Thompson also did not file several of his personal income tax returns, including returns for tax years 1999 and 2000. The CRA contacted him and asked him to file the outstanding returns.

Mr. Thompson subsequently provided his business records to an accounting firm in order to have his tax returns completed. Inside the box of records provided, the accounting firm found copies of Mr. Thompson's 1999 and 2000 tax returns, along with Notices of Assessment purportedly issued by the CRA. The CRA had no record of receiving the tax returns, or receiving payment of taxes owing, as claimed on the Notices of Assessment. A CRA investigation revealed that the Notices of Assessment were not genuine.

"Canadian taxpayers must have confidence in the fairness of the tax system," said the Commissioner of the Canada Revenue Agency, Michel Dorais. "To maintain that confidence, the Canada Revenue Agency is determined to hold tax evaders accountable for their actions."

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.gc.ca.

Contact Information

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