VANCOUVER, BC, June 19, 2020 /CNW/ - The Canada Revenue Agency (CRA) announced that Michael Curt Helmut Scholz of West Vancouver, was found guilty on June 18, 2020, in the Provincial Court of British Columbia (Robson Square), of two counts of uttering forged documents under the Criminal Code, and three counts of committing tax-related offences under the Excise Tax Act. Sentencing will follow at a later date.
A CRA investigation revealed that Mr. Scholz provided forged documents to CRA officials to claim ineligible input tax credits, and reduce taxes owed on a residential property in West Vancouver. Between December 31, 2009 and April 1, 2013, Mr. Scholz claimed $644,975.71, in input tax credits related to the property's design and construction. Mr. Scholz was aware that he could only claim these tax credits if he was the property's beneficial owner, and if the property was intended for resale. Mr. Scholz provided a forged bare trust agreement alleging his beneficial ownership of the property, to mislead the CRA into allowing a refund to be issued to him. Mr. Scholz also provided a forged lease agreement to decrease the property's assessed value, used to calculate the additional taxes owed.
All case-specific information above was obtained from the court records.
The CRA helps contribute to a healthy, competitive and stable Canadian housing market through its efforts to address tax non-compliance in real estate.
Willfully failing to follow tax laws could result in serious consequences, including reassessments, the imposition of civil penalties, criminal investigations, and prosecutions, resulting in the imposition of court fines, jail time and a criminal record. When taxpayers are convicted of Goods and Services Tax/Harmonized Sales Tax (GST/HST) tax evasion, they must still repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the CRA. In addition, the court may fine them up to 200% of the taxes evaded and impose a jail term of up to five years.
The CRA remains dedicated to maintaining the integrity of Canada's tax system, and the social and economic well-being of Canadians during these unprecedented times. The CRA continues to aggressively pursue tax evasion, and false benefit claims with all the tools available. The CRA is dedicated to ensuring that individuals and businesses access and receive only those benefits to which they are entitled so that important benefit programs can be administered to those who need them. As a result of COVID-19, we are seeing the increased importance of these benefits, and are working to ensure that they continue to be available to Canadians. Any individual or business who claims benefits that they are not entitled to, including ineligible claims related to new COVID-19 benefits, may be required to repay the benefit or be subject to other possible action.
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SOURCE Canada Revenue Agency
Media Relations - Regional contact, Cheryl Yeung, Canada Revenue Agency, 604-666-9261
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