Real estate agent fined $98,050 for tax evasion

Desmond Allen, of Caledon pleaded guilty to six counts of income tax evasion and Goods and Services Tax (GST) evasion and six counts of filing falsified returns, in the Ontario Provincial Court recently. Allen was fined $98,050 and was given 28 months to pay the fine.

"Canadian taxpayers must have confidence in the fairness of the tax system," said the Michel Dorais, commissioner of the Canada Revenue Agency. "To maintain that confidence, the Canada Revenue Agency is determined to hold tax evaders accountable for their actions."

A Canada Revenue Agency (CRA) investigation revealed that Allen, a real estate agent, under-reported his income on his 2000 personal income tax return by $100,050. Allen also claimed rental losses on properties he did not own and personal expenses as business expenses, thus reducing his taxable income for the years 1998-2000 by approximately $383,713. By doing so, Allen evaded paying $117,546 in personal income tax.

Furthermore, Allen overstated the GST input tax credits by $11,782 and under-reported the amount of GST collected by $10,744. By doing so he failed to remit GST refunds totaling $22,526.

Individuals or corporations convicted of tax evasion still have to pay the full amount of tax owing, plus interest, and any penalties the CRA assesses. In addition, the court may fine them up to 200% of the tax evaded and sentence them to a two-year jail term. The CRA may also assess a penalty of up to 50% of the tax they tried to evade.