Canada Revenue Agency

Canada Revenue Agency

June 16, 2014 13:48 ET

Directors Fined and Sentenced for Tax Evasion

THUNDER BAY, ONTARIO--(Marketwired - June 16, 2014) - The Canada Revenue Agency (CRA) announced today that Allan Curle and Bruce Johnson were sentenced on June 2, 2014, in the Ontario Court of Justice in Thunder Bay, to a total of 24 months in jail and a total fine of $305,073. On March 21, 2014, Curle and Johnson, as directors of Norall Group Contracting Inc. (Norall), were found guilty, in the same court, of one count each of tax evasion and conspiracy to commit tax evasion. Curle was given 14 months jail time and fined $174,729 and Johnson was given 10 months jail time and fined $130,344. The fines represent 100% of the federal taxes each evaded plus 50% of the cumulative total of federal income taxes evaded by the parties involved in the conspiracy to evade taxes. Curle, Johnson and a third individual involved, evaded a total of $196,428 in federal income taxes.

Also related to this matter, on December 2, 2013, Norall pleaded guilty, in the Ontario Court of Justice in Thunder Bay, to one count of conspiracy to commit tax evasion and was sentenced to a fine of $32,118.

A CRA investigation found that Curle and Johnson followed a tax evasion scheme based on the "natural persons" argument and in doing so failed to report $629,842 in income. The unreported income was paid to Curle and Johnson by Norall, for services rendered. The natural persons argument is based on the principal of treating oneself as two people (natural and legal), where the legal person is obligated to file an income tax and benefit return and that income received as a natural person is not subject to Canadian income tax.

The preceding information was obtained from the court records.

The Canada Revenue Agency warns all Canadians to beware of individuals that try to convince you that Canadians do not have to pay tax on the income they earn. Canadian courts have repeatedly and consistently rejected all arguments made in these tax protester schemes. For those involved in tax protester schemes, the CRA will reassess income tax, and charge interest and penalties. In some cases, these individuals will be prosecuted for tax evasion. If convicted, they could face significant fines and possibly jail time. More information on tax protester schemes is available at www.cra.gc.ca/alert.

When individuals are convicted of income tax and GST/HST evasion, they must still repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the CRA. In addition, the court may fine them up to 200% of the taxes evaded and impose a jail term of up to five years.

If you have ever made a tax mistake or omission, the CRA is offering you a second chance to make things right through its Voluntary Disclosures Program (VDP). If you make a valid disclosure before you become aware that the CRA is taking action against you, you may only have to pay the taxes owing plus interest. More information on the VDP can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.

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

Contact Information

  • Sam Papadopoulos
    Communications Manager
    416-952-8096