MONTREAL, Oct. 30, 2012 /CNW Telbec/ - Professional Pharmacy Wholesale Services Ltd. (PPWS), a Montréal company specializing in wholesaling diagnostic material, mainly for diabetes, pleaded guilty to a count of tax evasion today before the Court of Quebec. It was fined $325,000, which represents 150% of the federal tax it tried to evade. In addition to this fine, PPWS will have to pay the full amount of tax owing, plus related interest and any administrative penalties that apply.
The Canada Revenue Agency (CRA) investigation revealed that PPWS voluntarily contravened the Income Tax Act by deducting a total of $1,050,680 in false expenses to lower its taxable income and avoid paying a total of $214,266 in taxes for the 2006, 2007, and 2009 tax years.
PPWS, whose sole administrator and principal shareholder is Douglas Parker Rudderham, used false invoices for studies in the name of four suppliers. The names of three of them, one former lawyer from Nova Scotia and two companies from China, were used without their knowledge, while a fourth name was that of another company incorporated by Mr. Rudderham.
The above information was obtained from the court records.
Canadians have to be confident that the administration of the tax system is fair. That's why the CRA works to ensure that the vast majority of Canadians who pay their taxes are not penalized by those who don't.
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 taken by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. For more information on the Voluntary Disclosures Program, visit the CRA Web site at www.cra.gc.ca/voluntarydisclosures.
For more information on convictions, go to the Media page of the CRA Web site at www.cra.gc.ca/convictions.
SOURCE: Canada Revenue Agency
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