Canada Revenue Agency - Toronto Tax Services Office

Canada Revenue Agency - Toronto Tax Services Office

November 21, 2006 16:34 ET

Kingston Man Fined $13,432 for Filing False GST Returns

KINGSTON, ONTARIO--(CCNMatthews - Nov. 21, 2006) - Joseph Henderson of Kingston, Ontario, pleaded guilty to filing false goods and services tax (GST) returns in the Ontario Provincial Court in Kingston today. He was fined $13,432, which represents 100% of the amount of the GST refund he obtained or attempted to obtain.

A Canada Revenue Agency (CRA) investigation revealed that Mr. Henderson had filed GST refund claims for various quarters within the years 2000 to 2004, for a horse farm operation, which did not exist. The GST refunds were deposited in Mr. Henderson's personal bank account.

When individuals or corporations are convicted of obtaining GST refunds to which they are not entitled, they have to repay the GST amount that they obtained, plus interest, and any penalties the CRA assesses. In addition, the court may, on conviction by way of indictment, fine them up to 200% of the tax evaded and sentence them to a five-year jail term. Under the Excise Tax Act, the CRA may assess a penalty of up to 25% of the tax evaded or the rebate improperly claimed.

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 Web site at

Contact Information

  • Media information:
    Canada Revenue Agency
    Barbara Gal, Manager, Communications
    (905) 615-2117