Canada Revenue Agency

Canada Revenue Agency

May 05, 2009 14:27 ET

Toronto Resident Jailed for GST Fraud

TORONTO, ONTARIO--(Marketwire - May 5, 2009) - Abosede Adeoye, of Toronto, Ontario, was found guilty on January 28, 2009 of six counts of filing false GST returns under the Excise Tax Act, and six counts of obtaining and attempting to obtain false GST refunds to which he was not entitled. On April 30, 3009, he was sentenced to 90 days in jail, three years probation, and fined $12,050 in the Ontario Court of Justice in Toronto. The fine represents 50% of the amount of false GST refunds he obtained and attempted to obtain.

A CRA investigation revealed that Mr. Adeoye, the sole proprietor of a business called B and B International, claimed $342,114 of net business expenses and received unwarranted GST refunds of $19,355 and attempted to obtain GST refunds of $4,595 during the 1999 tax year. According to Mr. Adeoye, his business was engaged in computer and graphics equipment sales and marketing.

A CRA analysis of his personal financial and employment situation confirmed that Mr. Adeoye had never operated a business.

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.

When individuals or corporations are convicted of GST offences, in addition to court fines, they must repay any amounts falsely obtained, plus interest and any civil penalties that the CRA assesses.

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-arc.gc.ca/convictions/

Contact Information

  • Canada Revenue Agency
    Peter Delis
    416-512-4135