Tax Preparer Extradited to Canada for Tax Fraud

Posted By: Bobby B. Solhi on September 9, 2015 at 2:18:12 in News

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Tax Preparer Extradited to Canada for Tax Fraud

Bobby B. Solhi, J.D.

A former tax preparer in Vaughan, Ontario was extradited from Italy to Canada to serve 10 years in prison on a conviction of tax fraud/fraud over $5,000.  She received the maximum penalty for filing false claims in 4,200 tax returns for her clients between 2003 to 2005.

This was a strong message from the CRA to those who fail to file tax returns or have filed false returns that not only will you owe the tax, penalty, and interest but also may face criminal prosecution.

The CRA news release also states the following:

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 impose jail time and fine them up to 200% of the tax evaded.

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.

Please contact your tax advisor at TaxChambers LLP to learn about the Voluntary Disclosure Program and whether you may qualify.  More information on the Voluntary Disclosures Program (VDP).

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