False invoices in the construction industry: a 4th company found guilty in
the last month

LAVAL, QC, July 7 /CNW Telbec/ - The company 9054-5256 Quebec Inc. of l'Épiphanie, operating under the name Constructions Jacart, pleaded guilty today to tax evasion charges at the Joliette courthouse. The company was fined $20,248, which represents 100% of the federal tax it tried to evade.

The Canada Revenue Agency (CRA) investigation revealed that, for the 2005 tax year, the company voluntarily contravened the Income Tax Act by deducting false subcontracting expenses totalling $101,241 on its income tax return.

False invoicing is a scheme through which subcontractors bill companies for fictitious work or services not rendered. The false invoices are then used by the offending company to unduly reduce its revenues, claim tax refunds to which it would not be entitled or generate liquid assets for off-the-books salaries or for personal gain.

Since June 2010, Constructions Jacart is the fourth company operating in the construction industry to be found guilty of orchestrating such a scheme. Two other Montréal construction firms, Terramex Inc. and Chagnon (1975) Ltd., pleaded guilty to similar charges and were fined respectively $59,280 and $15,548, while a Châteauguay demolition company, Pro-Jet Démolition Inc., still awaits sentencing following its guilty plea.

In addition to the fines imposed by the Court, Construction Jacart will have to pay the full amount of taxes owing plus related interest and any penalties that apply.

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 full disclosure before the CRA takes any action or starts an investigation concerning them. These individuals will only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program can be found on the CRA Web site at www.cra.gc.ca/voluntarydisclosures.

The information in this news release was obtained from the court records.

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: For further information: media: Kareen Dionne, Communications Manager, Telephone: 514-283-2464, ext. 8288, Toll-free: 1-800-292-3430, ext. 8288


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