A Charlemagne construction firm found guilty of tax evasion

LAVAL, QC, July 19 /CNW Telbec/ - A Charlemagne construction firm, Construction L. Grenier Inc., pleaded guilty today to tax evasion charges at the Joliette courthouse. The company was fined $13,500, which represents 100% of the federal tax it tried to evade.

The Canada Revenue Agency (CRA) investigation revealed that, for the 2002 to 2004 tax years, the company voluntarily contravened the Income Tax Act by deducting $78,016 in false subcontracting expenses on its income tax returns. These expenses were supported by false invoices provided by Les Clôtures Arboit Inc., which was found guilty in 2007 in a similar scheme. At the time, Les Clôtures Arboit Inc. was fined $260,800 for producing $1.4 million of false invoices to be used by companies who were accomplices in the plan.

False invoicing is a scheme through which subcontractors bill companies for fictitious work or services not rendered. The false invoices are then used by the offending company to unduly reduce its revenues, claim tax refunds to which it would not be entitled, or generate liquid assets for off-the-books salaries or for personal gain.

In addition to the fines imposed by the Court, Construction L. Grenier Inc. will have to pay the full amount of taxes owing plus related interest and any penalties that apply.

Tax evasion costs all of us. The job of our investigators and auditors is to make sure that all Canadians pay the tax they owe.

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 full disclosure before the CRA takes any action or starts an investigation concerning them. These individuals will only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program can be found on the CRA Web site at www.cra.gc.ca/voluntarydisclosures.

The information in this news release was obtained from the court records.

Additional information on convictions can be found on the Media page of the CRA Web site at www.cra.gc.ca/convictions.

For further information: For media: Kareen Dionne, Communications Manager, Telephone: [phone], ext. 8288, Toll-free: 1-800-292-3430, ext. 8288