Canada Revenue Agency

Canada Revenue Agency

December 12, 2014 17:12 ET

Local Restaurateur Convicted of Tax Evasion

HAMILTON, ONTARIO--(Marketwired - Dec. 12, 2014) - The Canada Revenue Agency (CRA) announced today that on December 11, 2014, Gerald Attard, of Hamilton, was sentenced in the Ontario Court of Justice in Hamilton, Ontario, to a fine of $130,895. On April 24, 2013, Attard pleaded guilty to one count of personal income tax evasion. The fine represents 100% of the total federal income tax evaded. The fine must be paid within nine months.

A CRA investigation revealed that Attard, as director of 1215569 Ontario Inc., deducted personal expenses as business expenses. The corporation, 1215569 Ontario Inc., operates as Geraldo's and provides services for wedding, social and corporate events in a pavilion at a well-known Burlington park. Attard expensed a down payment and mortgage payments for a Florida condominium, the purchase and maintenance of thoroughbred horses and various other household expenses. By doing so, Attard failed to report income of $466,855 from the corporation for the 2005 taxation year, thereby evading federal taxes of $130,895.

At separate court proceedings the corporation, 1215569 Ontario Inc., pleaded guilty to one count of GST/HST tax evasion and one count of corporate tax evasion. The corporation was sentenced on December 13, 2013 to a total fine of $299,118. Attard, as the director of 1215569 Ontario Inc., had the corporation deduct $1,459,219 of funds used for personal benefit as business expenses. By doing so, the corporation evaded paying federal taxes of $242,745 for the 2005 to 2007 taxation years and failed to remit GST of $56,373 collected in relation to a portion of these expenses.

The preceding information was obtained from the court records.

"The vast majority of Canadians pay their taxes in full and on time. The Canada Revenue Agency has strong and effective programs to identify those who try to avoid paying the tax they owe," said Vince Pranjivan, Assistant Commissioner of the Ontario Region.

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