St-Germain Transport Ltd. and its administrator found guilty of tax fraud

SHERBROOKE, QC, Dec. 14 /CNW Telbec/ - St-Germain Transport Ltd. and its administrator, Roger Coderre , from Drummondville, were found guilty of tax evasion before the Court of Quebec on September 22, 2009 . The Court will impose a fine at a later date.

The Canada Revenue Agency (CRA) investigation revealed that, for the 1997 to 2000 taxation years, St-Germain Transport Ltd. willingly failed to report income and claimed false expenses, enabling the corporation to evade payment of $28,000 in taxes.

The investigation also revealed that, for the same tax years, Mr. Coderre failed to report interest and dividend incomes on his personal income tax returns. In addition, he failed to report amounts that he appropriated from St-Germain Transport Ltd. and Gestions S.G.T.Ltd. by authorizing non-eligible expenses to pay his personal expenses and those of third parties. This scheme allowed him to evade the payment of $ 47,000 in taxes.

In addition to the fines imposed by the Court, St-Germain Transport Ltd. and Mr. Coderre will have to pay the full amount of taxes owing plus related interest and any administrative penalty that may apply.

Canadian taxpayers must have confidence in the fairness of the tax system. To maintain that confidence, the CRA is determined to hold tax evaders accountable for their actions.

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 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-arc.gc.ca/voluntarydisclosures.

The information in this news release was obtained from the court records.

Further information on convictions can be found in the Media Room on the CRA Web site at www.cra.gc.ca/convictions.

For further information: Julie Pronovost, Communications Manager, [phone], ext. 8270, Toll-free: 1-800-292-3430, ext. 8270