Canada Revenue Agency

Canada Revenue Agency

May 05, 2009 14:32 ET

CRA: Toronto Drywaller Fined for Tax Evasion

TORONTO, ONTARIO--(Marketwire - May 5, 2009) - Laurentino Medeiros, of Toronto, pleaded guilty in Ontario Court of Justice in Toronto on March 18, 2009 to two counts of income tax evasion. On May 1, 2009 he was fined $22,500. 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 Medeiros, a drywaller working in the construction industry, failed to report business income totalling $248,625 on his 2002 to 2006 personal tax returns. While working as a subcontractor for a drywall company, Medeiros provided the company with two other names and social insurance numbers (SIN). Medeiros misinformed the company that the work that he himself performed was carried out by the two individuals. By knowingly using aliases and SINs of other individuals, Medeiros tried to avoid reporting the income he earned, and by doing so, tried to evade paying $45,010 in federal income tax.

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
    Media information
    416-512-4135