Ottawa Resident Fined and Sentenced to House Arrest for Tax Fraud

OTTAWA, ONTARIO--(Marketwired - Feb. 2, 2015) - The Canada Revenue Agency (CRA) announced today that on January 30, 2015, Cemila Smikle-Kuznetzov, of Ottawa, Ontario, was sentenced in the Ontario Court of Justice in Ottawa to 30 days house arrest and a fine of $47,789. On August 1, 2014, Smikle-Kuznetzov pleaded guilty to one count of making false statements in the income tax returns of individuals to obtain or claim unwarranted tax credits under the Income Tax Act. The fine represents 100% of the unwarranted refunds she claimed.

A CRA investigation revealed that for 2005, 2006, 2007 and 2008 Smikle-Kuznetzov, using different aliases and by impersonating her sister, prepared and filed Canada Child Tax Benefit applications and personal income tax returns to receive benefits and credits for fictitious children. In particular Smikle-Kuznetzov fabricated and submitted false documents, such as birth registry papers, to support her fraudulent application for the Canada Child Tax Benefit and the Universal Child Care Benefit for twins and triplets that did not exist. As a result, Smikle-Kuznetzov unlawfully claimed $47,789 in Canada Child Tax Benefits, Universal Child Care Benefits and GST credits.

The preceding information was obtained from the court records.

Child and family benefits are monthly payments made to eligible families to help them with the cost of raising their children under the age of 18. The CRA is responsible for making sure that individuals receive the benefits to which they are entitled. That is why it is committed to educating taxpayers about their obligations under the Income Tax Act. For more information on child and family benefits, visit the CRA Web site at www.cra.gc.ca/benefits.

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.