Canada Revenue Agency - Toronto Tax Services Office

Canada Revenue Agency - Toronto Tax Services Office

October 27, 2005 16:01 ET

CCRA: Commercial Cleaning Contractor Fined For Tax Evasion

ST. CATHARINES, ONTARIO--(CCNMatthews - Oct. 27, 2005) - A St. Catharines commercial cleaning contractor was fined $55,073 after pleading guilty to four counts of tax evasion on October 26, 2005. Doris Mamo was given one year to pay the fine. The fine represents 125% of the income tax evaded.

A Canada Revenue Agency (CRA) investigation revealed that between 1998 and 2001, Ms. Mamo failed to report $221,870 of income, and evaded $44,059 in federal income tax. Ms. Mamo operated a business that cleaned commercial properties. Ms. Mamo prepared false returns that understated her income. The under reporting was uncovered by a review of contract payment reporting slips filed by businesses in the construction industry.

When individuals or corporations are convicted of tax evasion, they still have to pay the full amount of tax owing, plus interest, and any penalties the CRA assesses. In addition, the court may fine them up to 200% of the tax evaded and sentence them to a two-year jail term. The CRA may also assess a penalty of up to 50% of the tax evaded or the benefit improperly claimed.

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