Canada Revenue Agency

Canada Revenue Agency

October 10, 2013 15:04 ET

Spouses Fined $13,000 for Failure to File Tax Returns

BRAMPTON, ONTARIO--(Marketwired - Oct. 10, 2013) - The Canada Revenue Agency (CRA) announced today that on June 7, 2013, Pawanjeet Garewal pleaded guilty in the Ontario Court of Justice in Brampton, Ontario, to ten counts of failure to file corporate income tax returns. Her husband, Prabhjeet Garewal, also pleaded guilty to three counts of failure to file individual income tax returns. On October 9, 2013, they were fined $1,000 per count by the Court, for a total of $10,000 for Ms. Garewal and $3,000 for Mr. Garewal. The fine has since been paid in full. All outstanding returns have been filed.

Pawanjeet Garewal, as the director for East West Ebazaar Com Inc., an online Indian shopping business, failed to file the 2003 to 2008 corporate income tax returns for the company. In addition, Ms. Garewal, in her role as director for Onkar Group Inc., did not file the 2010 corporate income tax return for this company. She also failed to file the 2008 to 2010 corporate income tax returns as a director of the advertising firm Onkar Publishing Inc.

Her husband, Prabhjeet Garewal, failed to file his 2008 to 2010 personal income tax returns. Charges were laid only after repeated requests to file the outstanding returns were ignored. The Garewals only filed the returns after charges were laid.

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.

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 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 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 .

Contact Information

  • Keith Brooks
    Manager, Communications
    519-675-3248