OSHAWA, ONTARIO--(Marketwired - June 4, 2013) - The Canada Revenue Agency (CRA) announced today that on May 31, 2013, Ms. Doreen Tennina was found guilty in the Superior Court of Justice in Oshawa, Ontario, on two counts of fraud over $5,000 under the Criminal Code and was sentenced to the maximum period of 10 years in jail on each count to be served concurrently. She was also ordered to pay a fine of $699,608 for causing her company, Executive Accounting, to fail to report income from the tax evasion scheme.
Ms. Tennina is currently under arrest in Spain, where she previously owned properties. Extradition proceedings are underway. Once Tennina is back in Canada she will commence serving her sentence.
Ms. Tennina, Director and owner of 1517069 Ontario Inc., also known as Executive Accounting, provided tax preparation and accounting related services.
In November 2006, the CRA, as part of their investigation, executed search warrants on Ms. Tennina's residence, place of business and a storage facility. Documents obtained during the searches revealed that she had fraudulently claimed carrying charges and charitable donations totalling $58,500,000 on 4,200 income tax returns that she prepared on behalf of her clients for the 2003 to 2005 tax years. These false claims reduced the amount of federal taxes owed by over $10,000,000.
Ms. Tennina's corporation, 1517069 Ontario Inc., failed to report taxable income of $2.8 million for the years 2003 to 2005 resulting in the evasion of $699,608 in federal tax.
The preceding information was obtained from the court records.
"Canadian taxpayers must have confidence in the fairness of the tax system," said Darrell Mahoney, Assistant Commissioner, Ontario Region, CRA. "To maintain that confidence, the Canada Revenue Agency is determined to hold tax evaders accountable for their actions."
Taxpayers who claim false expenses, credits or rebates from the government are subject to serious consequences. They are liable not only for corrections to their tax returns and payment of the full amount of tax owing, but also to penalties and interest. In addition, if convicted of tax evasion, the court may fine them up to 200% of the tax evaded and sentence them for up to a five-year jail term.
Taxpayers 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 taxpayers 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 Web site 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.