Enforcement Notification - Tax evasion - Appeal denied for Winnipeg man sentenced to 4 year jail term for tax evasion
Apr 09, 2018, 17:36 ET
WINNIPEG, April 9, 2018 /CNW/ - The Canada Revenue Agency (CRA) announced that Jeff Dyck, an administrator for One World United Inc. had his appeal denied today by the Winnipeg Court of Appeal in relation to his sentence on tax evasion charges. He will be remanded into custody where he will serve the remaining portion of his 4 year sentence. In addition, he will have to pay all federal taxes owing, plus related interest, and any penalties that apply.
The CRA investigation showed that, for the 2008 to 2010 tax years, Mr. Jeff Dyck and Mr. Neil Friesen contravened the Income Tax Act by creating and marketing a tax write-off scheme. The scheme encouraged participants to make cash donations to a venture called One World United Inc. in exchange for false invoices. These false invoices claimed business losses that were four times the original donation amount. The scheme also coached participants to claim an improper Goods and Services Tax and Harmonized Sales Tax (GST/HST) refund.
On September 28, 2015, Mr. Dyck and Mr. Friesen pleaded guilty to the charges and were sentenced to three years in jail and given until March 31, 2016, to pay the court-imposed fine of $1,414,638 each. They failed to pay the fine by the required date so Mr. Dyck and Mr. Friesen were sentenced to an additional year in jail bringing their sentence to a total of four years on January 27, 2017. Only Mr. Dyck eventually appealed his sentence.
The decision read on Mr. Dyck's appeal resulted in an increased fine of $2,366,367 to represent 100% of the tax evaded. Mr. Dyck was remanded into custody to serve out the remainder of his four-year sentence.
All case-specific information above was obtained from the court records.
The CRA takes tax evasion very seriously. Tax evasion occurs when an individual or business wilfully ignores or disregards Canada's tax laws. For example, those participating in tax evasion under-report taxable income or claim expenses that are non-deductible or overstated. Those who do not fully comply with tax laws place an unfair burden on law-abiding taxpayers and businesses and jeopardize the integrity of Canada's tax base. For the 5-year period of April 1, 2012 to March 31, 2017, the courts have convicted 408 taxpayers. This involved $122 million in federal tax evaded and court sentences totaling approximately $44 million in court fines and 3,103 months in jail.
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Associated Links
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Voluntary Disclosures Program
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SOURCE Canada Revenue Agency
For further information: Joanne de Waal, Communications Manager, 587-475-3331
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