Tag: CRA

Yes, it’s true — CRA convictions are a real thing and they happen to average people across the country.

When it comes to filing taxes late, tax debt, and tax evasion, the Canada Revenue Agency (CRA) has many measures at its disposal. This includes collection action — such as wage garnishments, freezing bank accounts, and placing liens on assets — but they can also prosecute when they choose.

Here are some examples of average, everyday Canadians who ended up with CRA convictions:

1.     A British Columbia lawyer failed to report $1,284,254.81 of taxable income for the 2005, 2006, 2007, and 2008 tax years. He was sentenced on January 10, 2019 to a 22-month conditional sentence, including eight months of house arrest. He was also fined $418,865.66 after pleading guilty to one count of tax evasion under the Income Tax Act.

2.     An Ottawa resident was sentenced to a nine-month conditional sentence, including six months of house arrest, and a fine of $68,000 after failing to report net business and rental income totaling $410,148 for the years 2009 to 2013. He was also required to pay the full amount of tax owing, plus related interest and any penalties assessed by the CRA.

3.     A New Brunswick man pleaded guilty on June 10, 2019 to eight counts of tax evasion under the Income Tax Act. He was sentenced to a fine of $53,959. In addition, he will also have to pay the full amount of tax owing, plus related interest and any penalties assessed by the CRA.

4.     The CRA seized six rental properties and an automobile belonging to two Ottawa residents charged with tax evasion. They were alleged to have underreported their income by $3,114,100 from January 2008 to December 2013, thereby evading $523,532 in federal income tax. The duo was arrested and then released with court-imposed conditions. 

5.     A British Columbia land developer and builder was sentenced to pay a $23,100 fine after being found guilty on two counts of tax evasion and one count of making false statements under the Income Tax Act, and one count of GST/HST evasion under the Excise Tax Act.

According to the CRA, for the five-year period of April 1, 2013 to March 31, 2018, the courts have convicted 307 taxpayers of tax evasion. This involved $134 million in federal tax evaded and court sentences totaling approximately $37 million in court fines and 2,964 months in jail.

When taxpayers are convicted of tax evasion, they must still repay the full amount of taxes owing, plus interest and any civil penalties assessed by the CRA. In addition, the courts may fine them up to 200% of the taxes evaded and impose a jail term of up to five years.

Tax evasion can be a slippery slope — you may fear filing taxes late or know you can’t pay, so you don’t file them at all, which can end up leading down an even worse path.

If you do file taxes late, you may also be subject to CRA interest and late-filing penalties, which can add to the amount you owe.

But there is a better option than filing late or not filing at all — work with a tax debt expert.

At DebtCare Canada, we can help you deal with a tax debt situation. If you haven’t filed yet, or have filed but can’t pay, we provide access to one of the only programs that can resolve a CRA back tax problem.

 ·       Often your principal tax debt can be reduced.

·       Interest and penalties immediately stop.

·       Frozen bank accounts are unfrozen.

·       Wage garnishments are lifted.

·       Garnishments to customers are lifted.

·       You are able to make a single monthly payment.

And you won’t be subject to CRA convictions!

Contact us today for a free consultation. Call 1-888-890-0888 or visit www.debtcare.ca.