TROIS-RIVIÈRES, QC, April 5, 2012 /CNW Telbec/ - Immoplastie Inc. and Nicolet Plastique Ltd., as well as their administrator, Michel Cloutier, pleaded guilty to tax evasion charges yesterday before the Court of Quebec in Trois-Rivières. They were fined $47,304, 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.
The Canada Revenue Agency (CRA) investigation revealed that Michel Cloutier voluntarily contravened the Income Tax Act by omitting to declare personal expenses of $165,253 as taxable benefits for the 2004 to 2007 tax years.
As for the businesses, they both voluntarily deducted inadmissible expenses on their corporate tax returns: Immoplastie Inc. deducted $36,274 for the 2004 to 2009 tax years and Nicolet Plastique Ltd. deducted $12,527 for the 2004 to 2007 tax years.
In fact, the expenses falsely deducted pertained to work done at Mr. Cloutier's residences. Through this scheme, the three parties tried to avoid paying $47,304 in federal tax.
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 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 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's website 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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