Canada Revenue Agency

Canada Revenue Agency

February 09, 2012 16:18 ET

Windsor Man Fined $30,000 and Sentenced to House Arrest for Making False Statements

WINDSOR, ONTARIO--(Marketwire - Feb. 9, 2012) - The Canada Revenue Agency (CRA) announced today that on February 6, 2012, in the Ontario Court of Justice in Windsor, Philip Carlini of Windsor, pleaded guilty to one count of making a false statement on his 2003 personal income tax return. He was fined $30,000 which represents 101% of the total federal taxes evaded. In addition to the fine, Carlini was sentenced to a one year conditional sentence to be served in the community and he must surrender his passport to the CRA.

Carlini failed to report income of $118,287 on this 2003 personal income tax return and, in doing so, evaded $29,516 in federal income taxes.

A CRA investigation revealed that Carlini had signing authority on the bank accounts of two Windsor area businesses, Carlini Collision Ltd. and Carlini Bros. Body Shop Limited, the latter is a non-active corporation. Carlini deposited cheques for work performed by Carlini Collision Ltd. into the Carlini Bros bank account. He then wrote cheques from the Carlini Bros. account to himself or to pay his personal credit card.

The preceding information was obtained from the court records.

When individuals are convicted of income tax and GST 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 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 valid disclosure before they become aware of any compliance action being initiated by the CRA 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.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

  • Keith Brooks
    Manager, Communications
    (519) 675-3248