Robert Kalfayan arrested for fraud and tax evasion

The Canada Revenue Agency (CRA) announced that Robert Kalfayan is appearing today at the Montréal courthouse in connection with charges of fraud and tax evasion laid on December 4, 2019. Mr. Kalfayan was arrested on December 23, 2019, at Montréal-Trudeau International Airport upon his return to Canada where he faces one count of fraud under the Criminal Code and tax evasion charges in relation to various criminal offences under the Income Tax Act. The arrest was made by the Canada Border Services Agency in cooperation with the Service de police de la Ville de Montréal and the Royal Canadian Mounted Police.

The CRA's investigation revealed that Robert Kalfayan used a complex and fraudulent scheme to shield his luxurious Laval residence from CRA collection measures. Among other things, he allegedly used one of his foreign incorporated companies and a nominee to register a fictitious mortgage on his residence.

All case-specific information above was obtained from the court records.

The CRA will proactively use communication avenues to promote the results of successful prosecutions, and will release prejudgment information on significant criminal investigations actions such as searches, seizures of assets, and the laying of criminal charges. Publishing this information serves to maintain the integrity of the tax system and warns Canadians about potential illegal tax schemes.

The CRA has strengthened its ability to criminally investigate those who commit tax crimes, particularly those related to offshore tax evasion. The courts recognize the gravity of offshore cases by sentencing offenders to lengthier jail terms and imposing higher court fines. For the five year period, from April 1, 2014, to March 31, 2019, the courts convicted 17 taxpayers of tax evasion with links to offshore money and other assets. This involved $7,247,866 in federal tax evaded and court sentences totaling $5,784,464 in court fines and 29 years in jail.

The CRA has set up a free subscription service to help Canadians stay current on the CRA's enforcement efforts.

Associated Links

Offshore Tax Informant Program
Leads Program
Voluntary Disclosures Program

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Contacts

Frédérick Fink
Canada Revenue Agency
514-283-2628