False invoicing: Châteauguay demolition company convicted of tax evasion

BROSSARD, QC, June 3 /CNW Telbec/ - Pro-Jet Demolition Inc., a Châteauguay demolition company, and its administrator, Stéphane Turchetta, pleaded guilty yesterday to tax evasion charges at the Valleyfield courthouse. The company and its administrator will be sentenced at a later date.

The Canada Revenue Agency (CRA) investigation revealed that, for the 2003 to 2007 tax years, Pro-Jet Demolition Inc. voluntarily contravened the Income Tax Act by deducting false invoices totalling $503,669 on its income tax returns. These invoices originated from accommodating corporations and were part of a false invoicing scheme through which the company tried to evade paying $82,931 in income tax. Mr. Turchetta, for his part, falsified his income tax returns by failing to declare close to $35,000 in personal income.

False invoicing is a scheme through which individuals or companies obtain invoices from generally inactive companies for fictitious work. The invoices are then used to fraudulently reduce the companies' or individuals' revenues. The resulting tax savings are shared by the scheme's participants to use as off-the-books salaries or for personal gain.

In addition to the fines imposed by the Court, the company and its administrator will have to pay the full amount of taxes owing plus related interest and any penalties that apply.

The vast majority of Canadians pay their taxes in full and on time. In fairness to them, the CRA has put effective and rigorous programs in place to identify those people who try to avoid paying the taxes they owe. The CRA actively pursues tax evaders to maintain public confidence in the integrity of the tax system. The government is committed to protecting Canada's tax base and continues to take action against the underground economy.

Individuals who have not filed tax 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 information: Julie Pronovost, Communications Manager, [phone], ext. 8270, Toll-free: 1-800-292-3430, ext. 8270