Canada Revenue Agency

Canada Revenue Agency

November 19, 2014 17:20 ET

Hamilton Resident Fined for Tax Evasion

HAMILTON, ONTARIO--(Marketwired - Nov. 19, 2014) - The Canada Revenue Agency (CRA) announced today that on November 17, 2014, Sean Frederick of Hamilton, Ontario, and The Marcus Group Inc., of Burlington, Ontario, were sentenced in the Ontario Court of Justice in Hamilton, Ontario, to a combined fine of $51,685. On September 18, 2014, in the same court, Frederick and The Marcus Group Inc. pleaded guilty each to one count of evading income tax and to one count of evading GST/HST. The fine represents 50% of the total taxes evaded and has been paid in full.

A CRA investigation revealed that Frederick, through The Marcus Group Inc., offered seminars to clients on how to purchase and sell real estate for a profit. The Marcus Group Inc. also offered personal advisors to clients who engaged in the purchase and sale of real estate. Frederick and The Marcus Group Inc. failed to report combined revenues of $372,689 from the sale of seminars and advisory services. By doing so, the corporation evaded $47,898 in federal corporate taxes and $41,334 in GST/HST. Frederick evaded a total of $7,745 in personal federal income tax and $6,394 in GST/HST.

The preceding information was obtained from the court records.

"Tax evasion takes money away from the services that benefit all Canadians," said Vince Pranjivan, Assistant Commissioner of the Ontario Region. "The CRA takes action against those who try to avoid paying what they owe."

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

  • For media information:
    Sam Papadopoulos
    Manager, Communications
    (416) 952-8096