Tax Evasion Fine Equal to 200% of Taxes Owed

NEWMARKET, ONTARIO--(Marketwire - Jan. 31, 2012) - The Canada Revenue Agency (CRA) announced today that Baldev Singh Klair, of Markham, pleaded guilty on January 27, 2012, in the Ontario Court of Justice in Newmarket to two counts of tax evasion. He was fined a total of $18,500 which represents 200% of the total taxes evaded.

Klair is a self-employed taxi cab owner providing transportation services to and from the Toronto Pearson International Airport. A CRA investigation, which included the execution of a search warrant leading to the seizure of various bank records and trip sheets, revealed that Klair failed to report all of the income he earned on his 2005 income tax return thereby evading $7,000 in federal taxes. Furthermore, also in 2005, Klair collected but failed to declare and remit $2,250 in GST.

The preceding information was obtained from the court records.

When individuals are convicted of income tax and GST evasion, they must still 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 may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the Canada Revenue Agency (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.