RIMOUSKI, QC, Jan. 31, 2012 /CNW Telbec/ - R. Croteau Rimouski Inc. was
found guilty of tax evasion today before the Court of Quebec in
Rimouski. The company was fined $41,896, which represents 100% of the
federal tax it tried to evade. In addition to this fine, it will have
to pay all federal taxes owing, plus related interest and any penalties
that apply. This company runs stores operating under the company name L'Aubainerie in Rimouski, Matane, New-Richmond, Baie-Comeau and Sept-Îles.
The Canada Revenue Agency (CRA) investigation showed that, for the 2005
and 2006 tax years, R. Croteau Rimouski Inc. voluntarily contravened
the Income Tax Act by claiming a total of $251,265 in inadmissible expenses. By using
overestimated expenses, the company tried to lower the income taxes it
had to pay.
The main scheme used by the company to evade paying taxes consisted of
claiming false or inadmissible expenses—fictitious rental expenses paid
to the sister of its administrator, Alain Hébert; fake purchases
supported by falsified invoices; expenses for personal capital
property; and alimony for Alain Hébert's ex-wife claimed as a salary
The above information was obtained from the court records.
The CRA pursues tax evaders to maintain public confidence in the
integrity of the tax system. Canadians have to trust that our
self-assessment system is working and that it is fair.
Individuals 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 will 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 individuals may only
have to pay the taxes owing, plus interest. More information on the
Voluntary Disclosures Program (VDP) can be found on the CRA Web site at
Additional information on convictions can be found on the Media page of
the CRA Web site at www.cra.gc.ca/convictions.
SOURCE CANADA REVENUE AGENCY
For further information: