BRAMPTON, ONTARIO--(Marketwired - May 6, 2013) - The Canada Revenue Agency (CRA) announced today that Mr. Dele Afolabi, also known as Afolabi Dele, pleaded guilty on May 1, 2013 in the Ontario Court of Justice in Brampton, to one count of tax evasion. He was sentenced to a six-month conditional sentence of house arrest, and a fine of $10,000.
Mr. Afolabi operated Abundant Grace Investments, also known as Abundance Grace Investment, providing tax preparation services, financial planning and accounting related services. A CRA investigation discovered that false charitable donation claims totalling $373,364 were made on 59 income tax returns prepared by Mr. Afolabi for clients for the 2006 to 2008 tax years. The false claims were supported by fraudulent charity receipts. The false claims reduced the amount of federal taxes owed by $104,542.
The information in this news release was obtained from the court records.
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.