Construction: Terrebonne firm found guilty in false invoicing scheme

LAVAL, QC, Oct. 12 /CNW Telbec/ - A Terrebonne construction firm, Artec Environnement Inc., pleaded guilty today to charges of tax evasion at the St-Jérôme courthouse. The company was fined $15,378, 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 on its income tax returns a total of $77,665 in false expenses from subcontractors. These expenses were based on false invoices provided by Les Clôtures Arboit Inc.

In 2007, Les Clôtures Arboit Inc. was found guilty in a similar scheme of producing $1.4 million in false invoices intended for accomplice companies. Artec Environnement Inc. is the sixth firm to be found guilty of using accommodating invoices provided by Les Clôtures Arboit Inc. 

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

In addition to the fines imposed by the court, Artec Environnement Inc. will have to pay the full amount of taxes owing plus related interest and any penalties that apply.

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 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.

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:

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