Real Estate Agent Fined $93,679 for Tax Evasion

NEWMARKET, ONTARIO--(Marketwire - Dec. 19, 2011) - The Canada Revenue Agency (CRA) announced that on December 16, 2011, a Maple resident, Fernando Perri was sentenced in the Ontario Court of Justice in Newmarket to a fine of $93,679, which represents 100% of the federal taxes and Goods and Services tax (GST) that he attempted to evade. On January 11, 2011, Fernando Perri pleaded guilty to two counts of tax evasion in the Ontario Court of Justice in Newmarket.

A CRA investigation revealed that Perri, a real estate agent and associate broker in Vaughan and North York, failed to report taxable income of $289,344 on real estate commissions during the 2003 to 2005 years. The investigation further revealed that Perri also failed to remit the GST on the unreported commissions during the same period. As a result, Perri attempted to evade $70,102 in federal income tax and $23,577 in GST during these years.

The preceding information was obtained from the court records.

"Canadian taxpayers must have confidence in the fairness of the tax system," said Vince Pranjivan, Deputy Assistant Commissioner of the CRA, Ontario Region. "To maintain that confidence, the CRA is determined to hold tax evaders accountable for their actions."

When individuals are convicted of income tax and GST evasion, they still must 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.

Individuals 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 will 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 individuals 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 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.