Bay Roberts businessman fined $148,105 for tax evasion

Harbour Grace, NL, October 23, 2017…  The Canada Revenue Agency (CRA) announced today that Reginald Mercer, of Bay Roberts, NL, was sentenced on October 20, 2017, in Harbour Grace Provincial Court, to a court imposed fine of $148,105 after previously pleading guilty to tax evasion under the Income Tax Act and the Excise Tax Act. In addition to the court imposed fine, Mr. Mercer will also have to pay the full amount of tax owing, plus related interest and any penalties assessed by the CRA.

A CRA investigation revealed that, during the 2010 to 2013 tax years, Mr. Mercer, the owner of Mercer Transportation, claimed false expenses totaling $328,119, and failed to report income of $132,248. As a result, the court concluded that Mr. Mercer evaded $81,086 in federal income tax and obtained $67,019 in GST/HST refunds that he was not entitled to.

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

The CRA publicizes convictions in cases of tax evasion to maintain confidence in the integrity of Canada’s self-assessment tax system, and to deter others from failing to comply with our tax laws. The CRA may also publicize different stages of an investigation to warn Canadians of potentially fraudulent schemes.

If you have made an omission in your dealings with the CRA, made a tax mistake or left out details about income on your tax return, the Agency may give you a second chance to correct your tax affairs and avoid criminal prosecution. The Voluntary Disclosures Program (VDP) may give you the opportunity to come forward, make things right, and have peace of mind. Disclosures that are made before the CRA launches an enforcement action such as an audit or criminal investigation may only result in you having to pay taxes owed plus interest. That being said, the VDP is currently under review.  Changes will be announced in the fall of 2017. More information on the VDP can be found on the CRA's website at www.canada.ca/taxes-voluntary-disclosures.

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For media information:

Mayya Assouad
902-426-9889
mayya.assouad@cra-arc.gc.ca