HAMILTON, ONTARIO--(Marketwired - Oct. 31, 2013) - The Canada Revenue Agency (CRA) announced today that on October 23, 2013, Vekto Lumi, of Mississauga, Ontario, pleaded guilty in the Ontario Court of Justice in Hamilton to two counts of failing to file corporate tax returns as director of Vima Group Inc. and Lumi Installations Ltd. Vekto Lumi further pleaded guilty to one count of failing to provide information when required under the Income Tax Act. He was fined a total of $20,000 for all three counts.
Lumi, employed in the flooring business, failed to file T2 income tax returns for Lumi Installations Ltd. for 2009 and for Vima Group Inc. for 2006. He was a director of both companies. He was fined $1,000 per count and given 12 months to pay these fines. Lumi was also fined $18,000 for personally failing to comply with requirements to provide statements of assets, liabilities and living expenses covering the 2006 to 2010 tax years. He was given 18 months to pay this fine.
The preceding information was obtained from the court records.
In addition to the fines imposed by the courts, individuals or corporations convicted of failing to file tax returns are still obligated to file the tax returns and pay the full amount of taxes owing, plus interest, as well as any civil penalties that may be assessed by the CRA.
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.