Carpenter sentenced for tax evasion
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May 16, 2008 / 5:00 am
Kelowna tradesman, Heinz Suess, was sentenced Thursday in Kelowna Provincial Court after pleading guilty to one count of tax evasion and one count of failing to remit goods and services tax.
Suess was fined a total of $23,591 and given a six month Probation Order, during which he must complete 50 hours of community service.
The fine represents 75% of the income tax evaded and GST he failed to remit.
A Canada Revenue Agency (CRA) audit compared income Suess reported on his tax returns with income earned from Montana Construction and Development Corporation and determined there was a significant amount of unreported income.
As a result, the case was referred to CRA’s Enforcement Division.
On further investigation by CRA Enforcement investigators it was discovered that Suess failed to report net self employed business income totalling $139,070 for tax years 2001 to 2004, resulting in $21,274 in income taxes evaded.
The investigation also determined that Suess was not registered for GST which resulted in the failure to collect and remit net GST of $10,181.
“Tax evasion costs all of us,” says Paul Brisson, Assistant Director of Enforcement at CRA’s Southern Interior Tax Services Office.
“The job of our investigators and auditors is to make sure that all Canadians pay the tax they owe.”
When individuals or corporations are convicted of tax evasion or GST offences, they have to pay the full amount of tax owing, plus interest, and any penalties the CRA assesses.
In addition, the court may on summary conviction fine them up to 200% of the taxes evaded and sentence them to a two-year jail term.