Canada Revenue Agency

Canada Revenue Agency

June 03, 2009 08:05 ET

Whitby Landscaper Fined $23,000 for Tax Evasion

OSHAWA, ONTARIO--(Marketwire - June 3, 2009) - Franco (Frank) Nardolillo, of Whitby, pleaded guilty in Ontario Court of Justice in Oshawa on May 29, to one count of income tax evasion and one count of GST evasion. Nardolillo was fined a total of $23,000 which represents 50% of the tax evaded.

The Canada Revenue Agency (CRA) discovered that Nardolillo, a self-employed businessman, providing snow ploughing and landscaping services, under-reported a total of $179,694 of taxable income on his 1999 to 2002 personal income tax returns. Nardolillo also under- remitted GST from January 1, 1999 to December 31, 2002. As a result, Nardolillo evaded $25,638 in personal income tax and $19,464 in GST.

When individuals or corporations are convicted of tax evasion, they have to pay the full amount of tax owing, plus interest, and any penalties the CRA assesses. In cases of gross negligence, the Income Tax Act and Excise Tax Act allow the CRA to assess a penalty of up to 50% of the unpaid tax or the improperly claimed benefit. In addition, the court may, on summary conviction, fine them 50% to 200% of the tax evaded, and sentence them to a jail term of up to two 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 will not be penalized or prosecuted if they make a full disclosure before the Agency starts any action or investigation 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-arc.gc.ca/voluntarydisclosures

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
    Colin Kohlsmith
    Manager, Communications
    905-615-2838