fstaxsolutions

Chatham-Kent resident fined and jailed for tax evasion Chatham, Ontario, April 29, 2015 … The Canada Revenue Agency (CRA) announced today that on April 28, 2015, Anthony McPhail, of Chatham-Kent, Ontario, was sentenced in the Ontario Court of Justice in Chatham, Ontario, to 18 months in jail and a fine of $323,402.  On February 9, 2015, McPhail pleaded guilty to two counts of evading income tax and four counts of making or participating in the making of false statements in the income tax returns of individuals to obtain or claim unwarranted tax refunds under the  Income Tax Act . The fine represents 100% of the federal income tax evaded. A CRA investigation revealed that McPhail, a tax preparer and proprietor of Valet Vending Services, created a scheme whereby he advised his clients they could make money by buying and reselling chocolates to benefit charities. The CRA investigation revealed that no charities benefited from these sales. McPhail then prepared income tax ret...

Minister Findlay teams up with industry leaders to tackle the underground economy Minister also highlights Economic Action Plan 2015 investment to expand Canada Revenue Agency (CRA) Underground Economy Specialist Teams  April 28, 2015 Ottawa Canada Revenue Agency (CRA) The Honourable Kerry-Lynne D. Findlay, P.C., Q.P., M.P., Minister of National Revenue, met with members of the Underground Economy Advisory Committee yesterday on actions and opportunities for collaboration to tackle the underground economy (UE) across the country. The Minister also highlighted the Government’s commitment through Economic Action Plan 2015 to invest $118.2 million over five years to enhance the CRA’s audit capacity by expanding its Underground Economy Specialist Teams. These new specialist teams will use advanced data analysis to identify and adopt new approaches to combat the underground economy. Working with provincial colleagues, the teams will target UE activity in high risk sec...

Under the  Income Tax Act  and the  Excise Tax Act , persons convicted of tax evasion can face fines ranging from 50% to 200% of the taxes evaded and up to two years imprisonment. Further, upon conviction on an indictment, a fine ranging from 100% to 200% of evaded taxes and up to five years in imprisonment can be imposed. If convicted of fraud under Section 380 of the  Criminal Code of Canada , an individual can face up to 14 years in jail.