Canada Revenue Agency

Canada Revenue Agency

September 14, 2012 13:05 ET

Wholesale Clothier Fined for Tax Fraud

NEWMARKET, ONTARIO--(Marketwire - Sept. 14, 2012) - The Canada Revenue Agency (CRA) announced today that 1578398 Ontario Ltd., also known as M.A.R.S. Sales, of Toronto, was fined $8,848 after it plead guilty in the Ontario Court of Justice in Newmarket on September 12, 2012, to one count of fraud under the Excise Tax Act. The fine has since been paid in full.

A CRA investigation revealed that M.A.R.S. Sales filed a false GST return claiming input tax credits for August to October 2005 in order to receive an $11,060 refund. The company supplied an invoice which listed $174,457 in fictitious warehouse renovations to substantiate the claim.

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

Contact Information

  • Peter Delis
    Manager, Communications
    416-952-8044