Toronto, Ontario, July 27, 2011…The Canada Revenue Agency (CRA) announced today that Shafiq M. Punjani of Toronto, pleaded guilty in the Ontario Court of Justice in Toronto on July 18, 2011 to 16 counts of failing to file goods and services (GST) tax returns. He was fined $1,000 per count, for a total of $16,000, for not filing GST tax returns for two corporations of which he is a director. The fines must be paid within nine months.
Shafiq Punjani, as director of Liquidation Warehouse Corp., failed to file eight GST returns for quarterly periods from April 2003 to March 2005 and was personally fined $8,000. Punjani also pleaded guilty on behalf of the two corporations. Liquidation Warehouse Corp. failed to file four GST returns for quarterly periods from April 2003 to March 2004 and was fined $4000. 1480120 Ontario Inc. was also fined $4000 for failing to file GST returns for various reporting periods from July 2007 to March 2009.
The CRA made several requests for the missing returns before serving both directors and the two corporations with notices demanding that the returns be filed. Failure to comply with these notices resulted in charges being laid. The outstanding returns were filed after the CRA laid charges.
The preceding information was obtained from the court records.
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 Canada Revenue Agency (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.
Further information on convictions can be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.