Topics: News, What's New from the Charities Directorate of CRA, Canadian Charity Law, Avoiding 'Charity' Scams
Here is a CRA press release on a Brampton tax preparer sentenced after “A CRA investigation discovered that false charitable donation claims totalling $858,897 were made on 129 income tax returns prepared by Mr. Adebukunola for clients for the 2004 to 2009 tax years.”
Here is the CRA press release:
“Brampton tax preparer sentenced to house arrest for tax fraud scheme
Brampton, Ontario, March 5, 2013…
The Canada Revenue Agency (CRA) announced today that Mr. Adegboyega Adenekanad Adebukunola pleaded guilty on March 1, 2013 in the Ontario Court of Justice in Brampton, to one count of fraud over $5,000 under the Criminal Code. He was sentenced to a six-month conditional sentence of house arrest, not including time already served in custody, and an additional three years’ probation. A condition of Adebukunola’s sentence and probation is that he is not to assist in preparing or filing income tax returns.
Mr. Adebukunola operated KAAL Associates Limited, providing tax preparation services, financial planning and accounting related services from 2005 to 2010. A CRA investigation discovered that false charitable donation claims totalling $858,897 were made on 129 income tax returns prepared by Mr. Adebukunola for clients for the 2004 to 2009 tax years. The false claims were supported by fraudulent charity receipts that appropriated the names of two charities without their permission or knowledge. The false claims reduced the amount of federal taxes owed by $245,602.
Mr. Adebukunola was arrested in the United States on an international warrant and returned to Canada at the request of Canadian authorities. He remained in custody during the process.
The information in this news release was obtained from the court records.
“Canadian taxpayers must have confidence in the fairness of the tax system,” said Vince Pranjivan, Deputy Assistant Commissioner, Ontario Region, CRA. “To maintain that confidence, the Canada Revenue Agency is determined to hold tax evaders accountable for their actions.”
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:
(519) 675-3248 “
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Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.