Richmond Hill resident sentenced for GST/HST fraud

The Canada Revenue Agency (CRA) announced that Ninel Beyder of Richmond Hill, Ontario, was sentenced in the Ontario Court of Justice in Newmarket, on July 22, 2020, to a conditional sentence of 18 months, and was fined a total of $195,000. Beyder pleaded guilty on September 19, 2019, in the Ontario Court of Justice in Oshawa, Ontario, to one count of obtaining or attempting to obtain false goods and services tax/harmonized sales tax (GST/HST) refunds under the Excise Tax Act. In addition to the court imposed fine, Beyder 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 Beyder, as director and sole shareholder of a former transportation company, 1615074 Ontario Inc. (operating as Ninella Charters and Driver Services), claimed false input tax credits on 1615074 Ontario Inc.'s GST/HST returns for the monthly reporting periods from March 1, 2010, to June 30, 2013. During those reporting periods, 1615074 Ontario Inc. thereby obtained refunds of $195,000 to which it was not entitled.

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, jail time and a criminal record. When taxpayers are convicted of GST/HST tax evasion, they must still repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the CRA. In addition, the court may fine them up to 200% of the taxes evaded and impose a jail term of up to five years.

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 make claims 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 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.

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

Contacts

Paul N Murphy
Senior Communications Advisor
416-952-8105

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