BRAMPTON, ONTARIO--(Marketwired - May 3, 2014) - The Canada Revenue Agency (CRA) announced today that on April 29, 2014, Vijay Aggarwal, Ajit Gupta and 1509523 Ontario Inc., operating as A.G. Liquidation, were sentenced in the Ontario Court of Justice in Brampton, Ontario, to a total fine of $445,440. On July 24, 2013, Aggarwal and Gupta pleaded guilty to four counts each of income tax evasion, while 1509523 Ontario Inc. pleaded guilty to four counts of Goods and Services/Harmonized Sales Tax (GST/HST) evasion. Aggarwal was fined $185,302, Gupta $176,394 and 1509523 Ontario Inc., $83,744. The fines represent 125% of the total taxes evaded.
A CRA investigation found that Aggarwal and Gupta, both of Brampton, Ontario, were equal shareholders of 1509523 Ontario Inc., which bought and resold discounted merchandise either in bulk or to the general public. Aggarwal and Gupta used money from A.G. Liquidation for personal purposes and failed to report the appropriated money as income on their personal tax returns, thereby evading $148,241 and $141,115 in federal income taxes, respectively. A.G. Liquidation failed to remit $66,995 in GST/HST.
The preceding information was obtained from the court records.
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.