Canada Revenue Agency

Canada Revenue Agency

May 18, 2010 15:01 ET

Tax Evasion Conviction Results in Fine of $22,600

NEWMARKET, ONTARIO--(Marketwire - May 18, 2010) - On May 14, 2010, Alex Humberto Piedrasanta of Campbellford, pleaded guilty in the Ontario Court of Justice in Newmarket to four counts of tax evasion. He was fined a total of $22,600 which represents 50% of the federal taxes he attempted to evade.

A Canada Revenue Agency (CRA) investigation, commenced after a routine audit, revealed that Piedrasanta, age 29, worked as a subcontractor for two painting contractors painting homes in and around Vaughan. He was responsible for the day-to-day operation of his sole proprietorship including preparing invoices and collecting payments from contractors. In 2002 and 2003, he failed to report taxable income totalling $120,688 and in doing so, attempted to evade $27,349 in federal income taxes. He also failed to remit total GST of $17,851 for the period of January 1, 2002 to December 31, 2004.

"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.

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.

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.gc.ca/convictions.

Contact Information

  • Media information: Canada Revenue Agency
    Nona Larrett
    Communications Manager
    416-952-7848
    www.cra.gc.ca