Canada Revenue Agency

Canada Revenue Agency

April 15, 2008 15:31 ET

Canada Revenue Agency: Toronto Businessman Fined for Tax Evasion

TORONTO, ONTARIO--(Marketwire - April 15, 2008) - Eldon Hawkins, of Toronto, pleaded guilty to one count of tax evasion in the Ontario Court of Justice in Toronto. On April 14, 2008, he was fined $11,528, which represents 75% of the federal taxes he evaded. Mr. Hawkins has 30 days to pay the fine.

A Canada Revenue Agency (CRA) investigation revealed that Mr. Hawkins, operating a company that sold reconditioned pallets, failed to report taxable income totalling $86,547 on his 2002 personal income tax return. The CRA was able to discover the unreported income by using bank deposit records and third party information.

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
    Sara Monture
    (905) 615-2838