Canada Revenue Agency

Canada Revenue Agency

April 13, 2012 15:00 ET

House Arrest and $59,388 Fine for Norland Resident

LINDSAY, ONTARIO--(Marketwire - April 13, 2012) - The Canada Revenue Agency (CRA) announced today that Wallace Dove, of Norland (Coboconk), Ontario, pleaded guilty in the Ontario Court of Justice in Lindsay on April 3, 2012, to one count of attempting to obtain false refunds under the Income Tax Act and one count of creating false documents under the Criminal Code. Dove was fined $59,388, representing 50% of the refund he attempted to obtain. Dove was also given a nine-month conditional sentence, including four and a half months of house arrest, as well as an additional 12 months' probation. A condition of Dove's sentence and probation is that he is not to assist in preparing or filing income tax or HST returns on behalf of anyone other than himself, his wife, or his parents.

Dove has paid $10,000 towards the fine and was given 21 months to pay the balance.

A CRA investigation revealed that Dove attempted to obtain false refunds by altering a CRA notice and subsequently using the altered notice as supporting documentation when he filed his 2006 Income and Benefits return. The notice, which originally reflected federal income taxes owing of $118,777, was altered to indicate that $118,777 of federal income tax had been withheld and was therefore refundable to him. The return was audited and the refund was never issued by the CRA.

The preceding information was obtained from the court records.

"The overwhelming majority of Canadians pay their taxes in full and on time," said Vince Pranjivan, Deputy Assistant Commissioner of the Ontario Region of the Canada Revenue Agency. "In fairness to them, the Canada Revenue Agency makes sure that people who try to avoid paying taxes are held to account."

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.

Taxpayers 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 may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers 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 Web site at www.cra.gc.ca/voluntarydisclosures.

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

Contact Information

  • Rebecca Merrett
    Communications Manager
    613-961-2081