CRA says “Brampton tax preparer guilty of tax fraud scheme” which involve charity donations
Posted under News | What's New from the Charities Directorate of CRA | Ethics and Canadian Charities | Avoiding 'Charity' Scams
Here is a recent press release from CRA. They went after a tax preparer for issuing some false donation receipts.
“Brampton tax preparer guilty of tax fraud scheme Brampton, Ontario, October 18, 2012…The Canada Revenue Agency (CRA) announced today that Samuel Yeboah Tanoh of Brampton pleaded guilty on October 12, 2012, in the Ontario Court of Justice in Brampton, to one count of fraud over $5,000. He was fined $6,789.
A CRA investigation revealed that Samuel Yeboah Tanoh, operating as director of Trans Xpress Cash Inc., managed a tax preparation business in the Toronto area. Mr. Tanoh included false charitable donation claims in the amount of $13,579 on his clients’ 2005 and 2006 personal income tax returns. On occasion, he provided his clients with false donation receipts to substantiate false claims.
The information in this news release was obtained from the court records.
Taxpayers who claim false expenses, credits or rebates from the government are subject to serious consequences. They are liable not only for corrections to their tax returns and payment of the full amount of tax owing, but also to penalties and interest. In addition, if convicted of tax evasion, the court may fine them up to 200% of the tax evaded and sentence them for up to a five-year jail term.
Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA’s Web site at http://www.cra.gc.ca/voluntarydisclosures.
Further information on convictions can also be found in the Media Room on the CRA website at http://www.cra.gc.ca/convictions.
For media information: