Fraudulent nominee scheme: Montrealer sentenced for tax evasion

The Canada Revenue Agency (CRA) announces that on June 29, 2022, Kamal Aissani, from Montréal, was sentenced at the Montreal Courthouse to a conditional sentence of nine months, and was fined $55,325. Mr. Aissani pleaded guilty on April 25, 2022, to one count of tax evasion under the Income Tax Act.

A CRA investigation revealed that for tax years 2009 to 2015, Kamal Aissani attempted to evade the payment of over $110,000 in taxes using a fraudulent nominee scheme. The scheme consisted of billing for services rendered by personnel placement companies that belonged to Mr. Aissani using nominees. Mr. Aissani then deposited the cheques received at collection centers using powers of attorney signed by the nominees, who were unaware of the existence of the scheme.

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

Tax evasion is a crime. Falsifying records and claims, wilfully not reporting income, or inflating expenses can lead to criminal charges, prosecution, jail time, and a criminal record. From April 1, 2021, to March 31, 2022, there were 23 convictions, with court imposed fines totalling $3,303,110. These taxpayers were sentenced for wilfully evading payment amounts totalling $4,407,386 in federal tax. Out of the 23 convictions, 10 individuals were sent to jail for a total of 15.3 years.

In addition to the court imposed fines and/or jail sentences, convicted taxpayers have to pay the full amount of tax owing, plus related interest and any penalties assessed by the CRA.

The CRA is dedicated to maintaining the integrity of Canada’s tax system, thereby contributing to the social and economic well-being of Canadians, particularly during these unprecedented times. The CRA continues to aggressively pursue tax evasion, and false claims with all the tools available to it. The CRA works to make sure that individuals and businesses report all income earned and only claim benefits to which they are entitled, so that important benefit programs can be administered to those who need them. Any individual or business who claims losses or benefits that they are not entitled to, including ineligible claims related to new COVID-19 benefits, will face serious consequences.

Associated Links

Leads Program
Voluntary Disclosures Program

Contacts

Media Relations
Karl-Philip Marchand-Giguère
Canada Revenue Agency
438-270-9856
Karl-Philip.Marchand-Giguere@cra-arc.gc.ca

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