Toronto Dentist Fined $175,586 for Tax Evasion

TORONTO, ONTARIO--(Marketwired - Sept. 4, 2014) - The Canada Revenue Agency (CRA) announced today that on September 2, 2014, Dr. Gerald Vasilakos was sentenced, in the Ontario Court of Justice in Toronto, Ontario, to a fine of $175,586 and to a conditional sentence of two years less a day. On March 7, 2014, Vasilakos, was found guilty by the same Ontario Court of Justice of four counts of wilful tax evasion. Vasilakos was given 90 days to pay the fine, which represents 100% of the federal taxes he evaded. Part of Vasilakos' conditional sentence includes home confinement for a year and 200 hours of community service.

A CRA investigation revealed that Vasilakos, owner and operator of a dental clinic, used various tax evasion schemes, including a scheme that is based on the faulty premise that the federal government cannot impose a direct tax on a human being, to wilfully avoid paying federal income taxes. Vasilakos produced fictitious invoices claiming they were for goods and services supplied by a trust that had copyrighted the use of his name. The court found that the fictitious invoices, totalling $751,500, were created solely to substantiate the subcontract fees claimed in order to reduce his taxable income to zero on his 2005 to 2008 income tax returns. By doing so, Vasilakos evaded the payment of $175,586 in federal income tax.

The preceding information was obtained from the court records.

"The overwhelming majority of Canadians pay their taxes in full and on time," said Vince Pranjivan, Acting Assistant Commissioner of the Ontario Region. "In fairness to them, the Canada Revenue Agency makes sure that people who try to avoid paying taxes are held to account."

When individuals are convicted of income tax and GST/HST 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.

If you have ever made a tax mistake or omission, the CRA is offering you a second chance to make things right through its Voluntary Disclosures Program (VDP). If you make a valid disclosure before you become aware that the CRA is taking action against you, you may only have to pay the taxes owing plus interest. More information on the VDP can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.

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