Fines of over $70,000 for a Châteauguay demolition company and its
administrator

BROSSARD, QC, Nov. 17 /CNW Telbec/ - Pro-Jet Démolition Inc., a Châteauguay demolition company, and its administrator Stéphane Turchetta, were fined today $62,198 and $8,216 respectively, which represents between 75% and 100% of the federal income tax they tried to evade. They were found guilty of tax evasion on June 3, 2010 at the Valleyfield courthouse.

The Canada Revenue Agency (CRA) investigation had revealed that, for the 2003 to 2007 tax years, Pro-Jet Démolition 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.

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 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
Telephone: [phone], ext. 8270
Toll-free: 1-800-292-3430, ext. 8270