Summerside psychiatrist fined over $215,000 for personal and corporate tax evasion
The Canada Revenue Agency (CRA) announced that Arvind Singh of Summerside, Prince Edward Island, pleaded guilty on July 14, 2020 and was sentenced on August 11, 2020, in the Summerside Provincial Court, to two counts of tax evasion under the Income Tax Act. He was fined a total of $215,539. In addition to the court imposed fine, Singh 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 Singh prepared and filed his T1 personal income tax returns, as well as the T2 corporate returns for he and his spouse’s incorporated business, S and D Professional Corporation.
For the 2013 to 2015 taxation years, Singh failed to declare $225,785, of personal income and claimed $243,350, worth of ineligible expenses on his personal T1 returns. As a result he evaded $80,517 in taxes.
Over the same time period, Singh claimed a total of $591,367 of ineligible expenses on S and D Professional Corporation’s T2 returns. He also claimed ineligible personal expenses on the corporation’s returns. This led to him underreporting the corporation’s taxable income by $900,144 and evading an additional $135,022 in taxes. In total, Singh evaded $215,539 in taxes over the three year period.
All case-specific information above was obtained from the court records.
To maintain the fairness of our tax system, the CRA holds tax evaders, and those that facilitate tax evasion, accountable for their actions. 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, 2019 to March 31, 2020, there were 32 convictions, with 13 taxpayers sent to jail for a total of 18.5 years. These individuals were sentenced for wilfully evading payment of $7,427,090 in tax.
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 claims with all the tools available to them. The CRA is dedicated to ensuring that individuals and businesses claim income earned and losses 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 underreports income, or makes claims that they are not entitled to, including ineligible claims related to new COVID-19 benefits, may be required to repay the benefit or be subject to other possible action.
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