MONTREAL, July 14 /CNW Telbec/ - Charges were laid yesterday at the Montréal Court House against Claude Simard, the promoter of a scheme involving the donation of artwork to the municipality of Larouche in the Saguenay region.
An investigation conducted by the Canada Revenue Agency (CRA) revealed that Mr. Simard willfully evaded the payment of taxes due from third parties by helping them to obtain ineligible tax deductions, for the taxation years 2001 to 2007, for the donation of overvalued artwork to the Municipality of Larouche.
Donating art and other gifts in kind to registered charities or other specified institutions is a legitimate charitable activity that is encouraged by the Canadian tax system. However, taxpayers should be aware of the risks associated with certain art-donation schemes (http://www.cra-arc.gc.ca/nwsrm/fctshts/2002/m11/rt-eng.html) --often referred to as "art flipping"--which have the effect of cheating the government out of taxes that should be paid.
The CRA also wants to warn taxpayers about investing in schemes that provide inflated or unsubstantiated tax losses or deductions. For more information in this regard, visit our Web site at www.cra.gc.ca/alert.
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