Project Trident Convictions
November 13, 2009... An Edmundston, New Brunswick, tax preparer, yesterday was fined $275,196 and sentenced to a conditional term of two years less a day of house arrest after being convicted of multiple counts of tax evasion. He was ordered to pay the fine within five years, in installments of at least $25,000 per year, or face up to five years in prison. The tax preparer must also give up the tax business and will only be permitted to prepare tax returns for himself or his spouse. A Canada Revenue Agency (CRA) investigation revealed that the tax preparer made false and deceptive entries on his clients' tax returns for the 2004 and 2005 taxation years. He included fraudulent deductions and non-refundable tax credits such as tuition, medical expenses, donations, other employment expenses, child care expenses and business losses in order to obtain refunds greater than what they were entitled to.
October 26, 2009... A Brampton, Ontario, tax preparer, who pleaded guilty to one count of fraud over $5,000 on October 16, 2009, was sentenced to two years less a day house arrest to be served conditionally, and was fined $50,000. A joint Royal Canadian Mounted Police (RCMP) and Canada Revenue Agency (CRA) investigation revealed that the tax preparer filed false personal income tax returns, by overstating charitable donation receipts from various charities on behalf of 23 of his clients' income tax returns. During the 2003 to 2006 tax years, the tax preparer issued $331,716 in fraudulent charitable donations, and in doing so, helped his clients claim over $134,124 in non-refundable tax credits.
May 14, 2009... A Winnipeg, Manitoba tax preparer, was fined $141,000 and sentenced to twenty-three months in jail. A Canada Revenue Agency (CRA) investigation revealed that the tax preparer filed fictitious income tax returns on behalf of 23 of his clients, by changing amounts reported, without their knowledge. The tax preparer also failed to report $488,000 obtained illegally from a financial institution, on his own personal 2006 income tax return. In addition to the jail term and fine, the tax preparer still has to pay the full amount of taxes owing plus any other penalties the CRA assesses.
June 2, 2009... A Toronto-based charity scheme tax preparer (Ontario) pleaded guilty to one count of fraud over $5,000 and two counts of tax evasion. He was sentenced to time served plus one day and fined over $145,000. A CRA investigation revealed that he provided his clients with false charitable donation receipts from a number of churches and similar charitable organizations.
December 18, 2008... A Toronto, Ontario tax preparer pleaded guilty to one count of fraud over $5,000 and was sentenced to 51 months in jail. A CRA investigation revealed that the tax preparer prepared and filed false personal income tax and benefit returns on behalf of his clients as the taxpayers had claimed fictitious or overstated charitable donations.
May 22, 2008... A Gatineau, Quebec man pleaded guilty to tax evasion and was fined $30,000, which represents 77% of the tax evaded. A CRA investigation revealed that for the tax years 2000 to 2005, he produced false donation receipts for an amount of $146,275, attempting to evade $39,163 in income tax. In addition to the fine, he must also pay the taxes he evaded, the related interest, and any penalties assessed by the CRA.
May 13, 2008... A Grand Falls, New Brunswick tax preparer pleaded guilty to tax evasion and was fined over $32,000 and sentenced to 16 months of house arrest. A joint force operation between the CRA and the Royal Canadian Mounted Police revealed that the tax preparer had made false and deceptive entries on her clients' 2005 tax returns. She adjusted her clients' income tax returns after the discounting transactions were completed to include fraudulent deductions and non-refundable tax credits such as tuition, medical expenses, and child care expenses and obtained refunds in amounts greater than that to which they were entitled. In addition to the fine, she also has to pay the full amount of tax owing, plus interest, and any penalties assessed by the CRA.
May 2, 2008... A Brampton tax preparer was found guilty of one count of tax evasion and was fined over $58,000. A CRA investigation revealed that the tax preparer had sold $407,325 worth of false donation receipts to clients in 2004 and 2005. In addition to the fine, he was placed on a two-year probation that prohibits him from preparing tax returns for anyone other than his immediate family. He also has to pay the full amount of tax owing, plus interest, and any penalties assessed by the CRA.
May 1, 2008... A High River, Alberta tax preparer was fined $90,000 and sentenced to 18 months in jail after pleading guilty to tax evasion. A CRA investigation found that he advised clients to file false tax returns. Several clients were advised to create fictitious businesses to claim against their employment income, and others were advised to deduct personal expenses as business expenses.
April 25, 2008... A Toronto man was fined almost $4,000 after pleading guilty to three counts of assisting others in obtaining false income tax refunds. The CRA found that he supplied false T4 Statements of Remuneration Paid and false rent receipts to young high school students, for the purpose of filing false income tax returns. He then escorted the students to a tax preparation service where they filed false income tax returns, and as a result, obtained fraudulent tax refunds. In addition to the fine, he must repay the amount falsely obtained, plus interest and any civil penalties assessed by the CRA.
January 30, 2008... A Grand Falls, New Brunswick tax preparer pleaded guilty to tax evasion and was fined almost $80,000 and sentenced to 24 months less one day of house arrest. A joint force operation between the Canada Revenue Agency and the Royal Canadian Mounted Police found that she prepared false or deceptive statements on tax returns. She prepared fictitious documents to support tuition and education amounts, medical expenses, donations, other employment expenses, child care expenses and business losses to obtain refund amounts greater than those to which her clients were entitled. In addition to the fine, she also has to pay the full amount of tax owing, plus interest, and any penalties assessed by the CRA.
December 13, 2007... A Vancouver tax preparer pleaded guilty to 17 counts of income tax and goods and services tax fraud, six counts of theft, and four counts of fraud under the Criminal Code. He used several schemes to defraud the CRA and deceived clients by telling them they owed money to the CRA, keeping their payments for himself. He would then claim a refund for the same client and pocket the money received from the CRA. He was sentenced to four years in jail on the tax‑related and fraud counts, and 18-months in jail, to be served concurrently, on the six theft counts. He was fined over $250,000. In addition to the fine, he also has to pay the full amount of tax owing, plus interest, and any penalties assessed by the CRA.
October 18, 2007... A former CRA employee in Winnipeg was found guilty of criminal fraud, breach of trust, and tax evasion. The ex-employee was fined over $119,000 and given a 2-year conditional sentence for altering tax returns to generate false refunds. In addition to the fine, she also has to pay the full amount of tax owing, plus interest, and any penalties assessed by the CRA.
October 11, 2007... A Calgary resident was sentenced to two years in jail and ordered to repay the $202,626 he defrauded from the CRA. He filed fraudulent tax returns for 34 non-existent corporations, 14 non-existent proprietorships, and 10 legitimate corporations. In doing so he used false incorporation certificates, filed false documents using ex-employees' names and social insurance numbers and, in the majority of cases, had no books and records to support the returns filed. In total, he fraudulently obtained $202,626 and attempted to obtain a further $230,492 of GST refunds to which he was not entitled.
July 24, 2007... A Toronto tax preparer who pleaded guilty to fraud was sentenced to two years in jail, three years probation and ordered never to own or operate a tax preparation business. The fraudulent tax returns she prepared were supported by false charitable donation receipts and cost the Government of Canada $1,065,922. Taxpayers who were in receipt of these refunds will have their returns adjusted and have to pay back all outstanding amounts.
May 7, 2007... A Toronto man was found guilty of seven counts of attempting to obtain refunds by filing false statements on income tax returns. A CRA investigation determined that, acting as a tax preparer, he produced seven falsified income tax returns to obtain over $1.2 million in illegitimate refunds. The CRA was able to prevent him from obtaining any of the refunds claimed. On January 10, 2008, he was sentenced to two years in jail, three years probation, and was fined more than $610,000. He was also ordered not to prepare or assist in the preparation of income tax returns during his probation.
April 27, 2007... A Montréal tax preparer stole the identities of over 80 people and fraudulently accessed almost $200,000 in tax refunds, credits and benefits. He also offered new immigrants with little tax knowledge, tax preparation services, and he helped them obtain tax refunds to which they were not entitled. He pleaded guilty to tax evasion and was sentenced to 12 months in jail without any possibility of parole and fined over $400,000.
February 9, 2007... A Vaughan, Ontario tax preparer was found guilty on 16 counts under the Tax Rebate Discounting Act and was fined $8,000. He failed to pay some clients the full amount of the income tax refund to which they were entitled, failed to pay some clients their income tax refund at the time required, and failed to provide some clients with their Notice of Assessment from the CRA, or their Notice of the Actual Amount of the Refund of Tax. On May 2, 2007, he pleaded guilty to six counts of income tax evasion and was fined 100% of the taxes he evaded, over $8,400. The fine is in addition to the taxes and interest owed, as well as any civil penalties that may be assessed by the CRA.
Convictions, fines, and jail time to date:
|Description||# of convictions||Fines||Mandatory Jail time (in months)|
|ID theft by a tax return preparer||11||$875,162||97|
|ID Theft (other)||8||$558,261||171|
|Charities fraud by a tax return preparer||12||$2,104,219||173|
|Charities frauds (other)||16||$964,473||239|
|*** Total ***||50||$4,604,980||680|
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