Chatham-area resident sentenced for fraudulently claiming Canada Child Tax Benefits for dozens of phony children

The Canada Revenue Agency (CRA) announced that, on April 28, 2020, Michael Hulme of Bothwell, Ontario, was sentenced to an 18 month conditional sentence, including 100 hours of community service, and was fined a total of $61,460. Hulme was found guilty on March 2, 2020, in the Ontario Court of Justice in Chatham, of making or filing false statements, and providing fictitious supporting documents to obtain Canada Child Tax Benefits (CCTB) under the Income Tax Act, knowing that he was not entitled to these benefits, as he made claims for children that did not exist.

The CRA remains dedicated to maintaining the integrity of Canada's tax system, and the social and economic well-being of Canadians during these unprecedented times. The CRA continues to aggressively pursue tax evasion, and false benefit claims with all the tools available. The CRA is dedicated to ensuring that individuals and businesses access and receive only those benefits to which they are entitled so that important benefit programs can be administered to those who need them. As a result of COVID-19, we are seeing the increased importance of these benefits, and are working to ensure that they continue to be available to Canadians. Any individual or business who claims benefits that they are not entitled to, including ineligible claims related to new Covid-19 benefits, will face serious consequences.

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

Tax evasion is a crime. Falsification of records and claims, willfully not reporting income, or inflating expenses can lead to criminal charges, prosecution, jail time, and a criminal record. In 2018-2019, there were 22 convictions, with 12 taxpayers receiving sentences totaling 19 years of imprisonment.

Cheating on your taxes, including claiming ineligible benefits, affects the services and programs we all rely on to improve our quality of life. While most Canadians obey the tax laws and pay their taxes, the CRA maintains various programs to protect the integrity of the tax system.

The CRA remains dedicated to maintaining the integrity of Canada's tax system, and the social and economic well-being of Canadians during these unprecedented times. The CRA continues to aggressively pursue tax evasion, and false benefit claims with all the tools available. The CRA is dedicated to ensuring that individuals and businesses access and receive only those benefits to which they are entitled so that important benefit programs can be administered to those who need them. As a result of COVID-19, we are seeing the increased importance of these benefits, and are working to ensure that they continue to be available to Canadians. Any individual or business who claims benefits that they are not entitled to, including ineligible claims related to new Covid-19 benefits, will face serious consequences.

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

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Contact

Paul N Murphy
Senior Communications Advisor
416-952-8105