MONTREAL, May 31, 2012 /CNW Telbec/ - Montréal's Le Groupe Séguin Experts-Conseils Inc., now operating under the name Genius Conseil Inc., pleaded guilty today to tax evasion charges before the Court of Québec in Montréal. They were fined $32,042, which represents 100% of the federal tax they tried to evade. In addition to this fine, they will have to pay all federal taxes owing, plus related interest and any penalties that apply.
A Canada Revenue Agency (CRA) investigation showed that, for the 2009 tax year, Le Groupe Séguin Experts-Conseils Inc. voluntarily contravened the Income Tax Act by deducting false invoices totalling $165,000 on its income tax return. These invoices were part of a false invoicing scheme involving accommodating corporations, the majority of which were originally incorporated by Bernard Ratelle, an individual who was found guilty of tax fraud in 2008 as a result of a CRA investigation.
The above information was obtained from the court records.
False invoicing is a scheme through which individuals or companies obtain invoices from generally inactive companies for fictitious work. The invoices are then used to fraudulently reduce the companies' or individuals' revenues. The resulting tax savings are shared by the scheme's participants to use as off-the-books salaries or for personal gain.
Tax evasion takes money away from the services that benefit all Canadians. The CRA takes action against those who try to avoid paying what they owe.
Taxpayers 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 may 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 taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's Web site at www.cra.gc.ca/voluntarydisclosures.
Additional information on convictions can be found on the Media page of the CRA Web site at www.cra.gc.ca/convictions.
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