WOODSTOCK, ON, Jan. 30, 2019 /CNW/ - The Canada Revenue Agency (CRA) announced that McClay Group Ltd. (McClay) of Ingersoll, Ontario was sentenced to fines totalling $213,564. McClay pleaded guilty on January 30, 2019, in the Woodstock Court House to making false or deceptive statements on their income tax and Goods and Services Tax/Harmonized Sales Tax (GST/HST) returns. In addition to the court imposed fine, McClay will also have to pay the full amount of tax owing, plus related interest and any penalties assessed by the CRA.
A CRA investigation revealed that McClay, a transportation company providing long distance trucking services mainly to Ontario clients, underreported taxable income totalling $1,314,104 on its corporate income tax returns for 2011, 2012, and 2013, resulting in unpaid federal income tax totalling $192,233. McClay used three schemes to underreport its corporate income and reduce taxes payable: it did not record $625,809 of trucking revenue in its books and records; a total of $539,795 of non-business personal expenses and personal credit card expenditures were reported as business expenses in McClay's books and records; and McClay claimed $148,500 of false expenses.
McClay also over claimed $21,331 in input tax credits on non-business personal expenses and personal credit card expenditures reported as business expenses on its GST/HST returns during the monthly filing periods from November 1, 2010, to September 30, 2013, thereby reducing its GST/HST payable.
All case-specific information above was obtained from the court records.
Tax evasion is a crime. Falsification of records and claims, wilfully not reporting income, or inflating expenses can lead to criminal charges, prosecution, jail time, and a criminal record. Those who do not fully comply with tax laws place an unfair burden on law-abiding taxpayers and businesses and jeopardize the integrity of Canada's tax base. From April 1, 2013, to March 31, 2018, the courts convicted 307 taxpayers for tax evasion of $134 million in federal tax. These convictions resulted in sentences totaling approximately $37 million in court fines and 2,949 months (246 years) in jail.
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SOURCE Canada Revenue Agency
Media Relations, Canada Revenue Agency, 416-952-8105, [email protected]
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