Canada Revenue Agency

Canada Revenue Agency

March 23, 2009 14:51 ET

CRA: Newmarket Mason Fined for Evasion

NEWMARKET, ONTARIO--(Marketwire - March 23, 2009) - Heng Xian Chen, of Newmarket, president of Sanca Masonry Construction Company Ltd., pleaded guilty today in the Ontario Court of Justice in Newmarket to one count of income tax evasion and one count of GST evasion. He was fined $52,483. 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).

"Canadians have to be confident that the administration of the tax system is fair," said William V. Baker, Commissioner of the Canada Revenue Agency. "That's why the Agency works to ensure that the vast majority of Canadians who pay their taxes are not penalized by those who don't."

Sanca Masonry Construction Company Ltd. provided masonry services to new developments in the Newmarket area. While operating the company, Chen failed to remit $27,036 in GST for reporting periods January 1, 2001 through December 31, 2003, and evaded paying $25,447 in federal income tax for the 2001 and 2002 tax years. A CRA investigation revealed that while Chen provided his accountant with information to prepare the company's tax returns, he kept a secret set of records from which he failed to declare all income.

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-arc.gc.ca/convictions/

Contact Information

  • Canada Revenue Agency
    Peter Delis
    416-512-4135