Haileybury, Ontario, December 13, 2012 … The Canada Revenue Agency (CRA) announced today that on December 12, 2012, John S. Wilson and Liskeard Lumber Limited, both of Temiskaming Shores, Ontario, pleaded guilty in the Ontario Court of Justice in Haileybury to three counts of tax evasion. The total fine amounted to $116,349 which represents 75% of the taxes evaded. In addition to the fine, Wilson and Liskeard Lumber Limited also had to pay taxes owing, including interest and civil penalties, totalling $817,609.

The CRA conducted an investigation into the financial affairs of John S. Wilson and Liskeard Lumber Limited for the 2005 and 2006 tax years. During the years under investigation, Wilson, who is also the director and president of Liskeard Lumber Limited, was in the process of building himself a personal residence. Although most of the construction costs associated with the building of his new home were paid by Wilson, in 2006, $275,964 in costs were paid by Liskeard Lumber Limited and later deducted by the lumber company as corporate expenses, resulting in the company evading $57,051 in corporate income taxes for the 2006 taxation year. In addition, Liskeard Lumber Limited also submitted claims of $18,053 for GST Input Tax Credits to which the corporation was not entitled. Wilson, who failed to report the $275,964 worth of expenses paid by the corporation as income on his 2006 income tax return, evaded $80,028 in income taxes.

The preceding information was obtained from the court records.

“Canadian taxpayers must have confidence in the fairness of the tax system,” said Vince Pranjivan, Deputy Assistant Commissioner of the Ontario Region of the Canada Revenue Agency. “To maintain that confidence, the Canada Revenue Agency is determined to hold tax evaders accountable for their actions.”

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.

Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.