Canada Revenue Agency

Canada Revenue Agency

July 04, 2008 12:48 ET

CRA: GST Fraud Results in Jail Time for a Hamilton Resident

TORONTO, ONTARIO--(Marketwire - July 4, 2008) - Samuel Paul, of Hamilton, was fined $48,914 on June 26, 2008, in the Ontario Court of Justice in Toronto after being found guilty on November 30, 2007, to three counts of GST fraud. He also received a 12-month jail term. 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, for reporting periods in 1997 and 1998, Mr. Paul, operating as Tough Management, submitted fraudulent invoices and receipts to obtain GST refunds totalling $51,200. During that same time, Mr. Paul, operating as Oblivion Records/Globe Management, unsuccessfully attempted to obtain an additional $47,246.

Taxpayers who claim false expenses, credits or rebates from the government are subject to serious consequences. They are liable not only for corrections to their tax returns and payment of the full amount of tax owing, but also to penalties and interest. In addition, if convicted of tax evasion, the court may fine them up to 200% of the tax evaded and sentence them for up to a five-year jail term.

When individuals or corporations are convicted of GST offences, in addition to court fines, they must repay any amounts falsely obtained, plus interest and any civil penalties that the CRA assesses.

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

  • Canada Revenue Agency
    Sara Monture
    Manager, Communications
    905-615-2838