Canada Revenue Agency

Canada Revenue Agency

January 28, 2010 09:17 ET

Canada Revenue Agency: Woodbridge Carpenter Fined for Tax Evasion

NEWMARKET, ONTARIO--(Marketwire - Jan. 28, 2010) - Fred Santini, of Woodbridge, pleaded guilty in Ontario Court of Justice in Newmarket on January 26, 2010 to one count of income tax evasion. He was fined $20,000. 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).

A CRA investigation revealed that Santini, working as a carpenter in the construction industry, received separate payments as both an employee and a sub-contractor from his employer. As a sub-contractor, Santini submitted handwritten invoices under the name of a corporation that had been dissolved at the time. The cheques received in the corporation's name, were deposited into Santini's bank account. Santini failed to include $47,741 on his 2002 and $57,133 on his 2003 income tax returns, thereby evading $17,455 in federal taxes.

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

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

Contact Information

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