New Brunswick trucking company and owner guilty of tax evasion

The Canada Revenue Agency (CRA) announced that on June 10, 2019, Joseph Yvon Arseneau and 049780 NB Inc. of Neguac, NB, pleaded guilty in the Provincial Court of New Brunswick in Miramichi to eight counts of tax evasion under the Income Tax Act.

The court sentenced Mr. Arseneau to a fine of $53,959. In addition to the court imposed fine, Mr. Arseneau will also have to pay the full amount of tax owing, plus related interest and any penalties assessed by the CRA. 

Mr. Arseneau is the sole shareholder and director of 049780 NB Inc., a long haul trucking business, formerly operating as G D M Transport Ltd.

A CRA investigation revealed that:

• Mr. Arseneau knowingly caused 049780 NB Inc. to make false or deceptive entries in the books and records of 049780 NB Inc. for the taxation years 2012 to 2014, for fictitious truck repairs and maintenance expenses, for which he wrote cheques totalling $289,875.
• Mr. Arseneau had 049780 NB Inc. claim these expenses, thereby evading federal income taxes totalling $27,645.
• Although payable to third party individuals, Mr. Arseneau, in turn, endorsed these cheques and cashed or deposited them into bank accounts under his control. He failed to report the $289,875 as personal income in his 2012 to 2014 T1 personal returns, thereby evading federal income taxes totalling $80,272.

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

Wilfully failing to follow tax laws could result in serious consequences, including reassessments, the imposition of civil penalties and criminal tax investigations and prosecutions resulting in the imposition of court fines and jail time. Under the income tax and excise tax laws, persons convicted of tax evasion will face fines ranging from 50% to 200% of the evaded taxes and up to five years imprisonment. If convicted of fraud under Section 380 of the Criminal Code, an individual can face up to 14 years in jail.

The Voluntary Disclosures Program (VDP) gives you a second chance to change a tax return you previously filed or to file a return that you should have filed. A VDP application must be accepted by the CRA. Acceptance means you will pay the taxes owing, plus any applicable interest but you will be eligible for relief from prosecution and, in some cases, from penalties. For more information, go to Canada.ca/taxes-voluntary-disclosures.

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

Associated links

Informant Leads Program
Voluntary Disclosures Program

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Contact

Anne Pachal
Canada Revenue Agency
Tel:  902-426-5784 
Cell:  902-717-3274