False receipts: fine of over $100,000 for a Montréal tax return preparer

MONTREAL, Oct. 25 /CNW Telbec/ - Carlos Ernesto Ticas, a Montréal tax return preparer, was fined $111,175 today, which represents 110% of the federal tax he tried to evade. Mr. Ticas was found guilty of tax evasion in this case at the Montréal courthouse on May 10, 2010.

The Canada Revenue Agency (CRA) investigation revealed that, for the 2001 to 2005 tax years, Mr. Ticas purposely contravened the Income Tax Act by deducting nearly half a million dollars in false expenses on his personal income tax returns as well as on ones prepared for many of his clients. To support these expenses, Mr. Ticas created false receipts totalling $488,910, which enabled him to claim credits or refunds of $85,465 that neither he nor his clients were entitled to. The investigation also revealed that Mr. Ticas voluntarily failed to report $86,370 in personal income for the 2004 and 2005 tax years.

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

The CRA pursues tax evaders to maintain public confidence in the integrity of the tax system. The Government of Canada is committed to protecting Canada's tax base and continues to take action against the underground economy. 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.

More 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
Regional Spokesperson
Telephone: [phone], ext. 8288
Toll-free: 1-800-292-3430, ext. 8288