Tax fraud: Réseau Prospector and Claude Duhamel fined over $1.3 million

MONTRÉAL, March 11, 2015 /CNW Telbec/ - Réseau Prospector Inc., of Montréal, pleaded guilty to tax evasion charges today before the Court of Quebec in Montréal. It was fined $1,000,000, which represents a little over 100% of the federal tax it tried to evade.

The Canada Revenue Agency (CRA) investigation revealed that, for the 2007 tax year, Réseau Prospector Inc. voluntarily contravened the Income Tax Act by failing to report $6,945,000 in revenues from franchise sales.

Furthermore, on October 22, 2014, Claude Duhamel, who was the administrator of Réseau Prospector, pleaded guilty of tax evasion charges before the Court of Quebec in Montréal. He was fined $360,828, which represents 50% of the federal tax he tried to evade. In Mr. Duhamel's case, the CRA investigation had revealed that, for the 2003 to 2010 tax years, he had voluntarily contravened the Income Tax Act by claiming a total of $3,216,337 in non-capital losses to which he was not entitled.

In addition to their respective fines, Réseau Prospector Inc. and Claude Duhamel will have to pay the full amount of tax owing, plus related interest and any penalties that apply.

All case-specific information above 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.

If you have ever made a tax mistake or omission, the CRA is offering you a second chance to make things right through its Voluntary Disclosures Program (VDP). If you make a valid disclosure before you become aware that the CRA is taking action against you, you may only have to pay the taxes owing plus interest. More information on the VDP can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.

Additional information on convictions can be found on the Media page of the CRA website at www.cra.gc.ca/convictions.

 

SOURCE Canada Revenue Agency

For further information: Julie Pronovost, Regional Spokesperson, Telephone: 514-283-2226

RELATED LINKS
http://www.ccra-adrc.gc.ca

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