RIMOUSKI, QC, Jan. 31, 2012 /CNW Telbec/ - R. Croteau Rimouski Inc. was found guilty of tax evasion today before the Court of Quebec in Rimouski. The company was fined $41,896, which represents 100% of the federal tax it tried to evade. In addition to this fine, it will have to pay all federal taxes owing, plus related interest and any penalties that apply. This company runs stores operating under the company name L'Aubainerie in Rimouski, Matane, New-Richmond, Baie-Comeau and Sept-Îles.
The Canada Revenue Agency (CRA) investigation showed that, for the 2005 and 2006 tax years, R. Croteau Rimouski Inc. voluntarily contravened the Income Tax Act by claiming a total of $251,265 in inadmissible expenses. By using overestimated expenses, the company tried to lower the income taxes it had to pay.
The main scheme used by the company to evade paying taxes consisted of claiming false or inadmissible expenses—fictitious rental expenses paid to the sister of its administrator, Alain Hébert; fake purchases supported by falsified invoices; expenses for personal capital property; and alimony for Alain Hébert's ex-wife claimed as a salary expense.
The above information 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.
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 valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These individuals may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA 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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