Windsor, Ontario, May 16, 2011… The Canada Revenue Agency (CRA) announced today that James Albert Withington pleaded guilty on May 11, 2011 to two counts of making false statements on his income tax returns. Justice Gregory Campbell of the Ontario Court of Justice sentenced Withington to a fine of $14,496, representing 100% of the fraudulent income tax refunds resulting in a total of $28,991 in fines and fraudulent refunds owing.
Withington was a driver-operator for a transport firm located in Kitchener, Ontario. The Court heard that, for the 2006 and 2007 tax years, Withington prepared fraudulent T4 documents for himself using the business name Second 2 None Transport Inc., an inactive corporation he created in 2005. The T4 documents listed Second 2 None Transport Inc. as Withington’s employer. He then entered false amounts on the T4 slips that were used to prepare his T1 income tax returns. Withington received tax refunds of $7,516 for 2006, and $6,979 for 2007, to which he was not entitled.
The preceding information was obtained from the court records.
Taxpayers who claim false expenses, credits or rebates from the government are subject to serious consequences. They are liable not only for corrections to their tax returns and payment of the full amount of tax owing, but also to penalties and interest. In addition, if convicted of tax evasion, the court may fine them up to 200% of the tax evaded and sentence them for up to a five-year jail term.
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 also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.
