Peterborough Resident Fined $142,872

PETERBOROUGH, ONTARIO--(Marketwired - July 31, 2014) - The Canada Revenue Agency (CRA) announced today that on July 29, 2014, Joanna Hawkins-Mahaffey of Peterborough pleaded guilty, in the Ontario Court of Justice in Peterborough, to five counts of making false or deceptive statements and three counts of wilfully obtaining or claiming false credits and refunds under the Income Tax Act. Hawkins-Mahaffey was sentenced to a 90 day jail term, to be served on week-ends, two years of probation and a fine of $142,872. The fine represents 200% of the unwarranted credits she received and 50% of the federal taxes she evaded.

A CRA investigation revealed that for 2008 and 2009, Hawkins-Mahaffey prepared and filed false Canada Child Tax Benefit applications for two children that were not in her care and for three children that did not exist. In addition, Hawkins-Mahaffey filed false personal income tax returns and went to extreme efforts to conceal from CRA investigators her true entitlements for the various child benefit credits; this included redirecting mail from the CRA to create the perception that she was separated from her spouse. In total, she unlawfully received $71,097 in Canada Child Tax Benefits, Universal Child Care Tax Benefits, National Child Care Supplement and GST credits. She also evaded paying federal taxes totaling $1,353.

The information in this news release was obtained from the court records.

"Tax evasion takes money away from the services that benefit all Canadians," said Vince Pranjivan, Acting Assistant Commissioner of the Ontario Region. "The CRA takes action against those who try to avoid paying what they owe or receive credits they are not entitled to do so."

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 also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.