Canada Revenue Agency

Canada Revenue Agency

July 10, 2009 15:10 ET

Richmond Hill Travel Agency Fined $150,000 for Tax Evasion

NEWMARKET, ONTARIO--(Marketwire - July 10, 2009) - Fairway Travel Inc., operating as The Royal Travel Group, of Richmond Hill, was found guilty in the Ontario Court of Justice in Newmarket on July 8, 2009 to one count of income tax evasion. The company was fined $150,000. The fine is in addition to any taxes and interest owed, as well as any civil penalties that may be assessed by the Canada Revenue Agency (CRA).

"The Canada Revenue Agency pursues tax evaders to maintain public confidence in the integrity of the tax system," said William V. Baker, Commissioner of the Canada Revenue Agency. "Canadians have to trust that our self-assessment system is working and that it is fair."

A CRA investigation revealed that Fairway Travel Inc. understated its business income by $325,602 claiming non-deductible expenses for the 2000, 2002, and 2004 years. By doing so, the company evaded paying federal income taxes totaling $75,395.

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 full disclosure before the Agency starts any action or investigation 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

When individuals or corporations are convicted of tax evasion, they have to pay the full amount of tax owing, plus interest, and any penalties the CRA assesses. In cases of gross negligence, the Income Tax Act and Excise Tax Act allow the CRA to assess a penalty of up to 50% of the unpaid tax or the improperly claimed benefit. In addition, the court may, on summary conviction, fine them 50% to 200% of the tax evaded, and sentence them to a jail term of up to two years.

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

Further information on convictions can also be found in the Media Room on the CRA website at www.cra-arc.gc.ca/convictions/.

Contact Information

  • Canada Revenue Agency
    Peter Delis
    Media information
    416-512-4135