Sales rep fined $68,000 for tax evasion

A Markham, Ont. sales rep pleaded guilty recently to four counts of tax evasion. Claudette Walker of Century 21 Leading Edge Realty was fined $68,000.

A Canada Revenue Agency (CRA) investigation showed that Walker, self-employed, failed to report income of $215,412 on her 2002 to 2004 income tax returns. CRA says by not filing income tax returns for 2005 and 2006, she did not report taxable income of $121,609 in 2005 and $78,966 in 2006. In total, Walker pleaded guilty to evading federal income taxes of $70,000 and was fined $35,000. Walker also pleaded guilty to not remitting $35,135 in GST from January 2002 to December 2006 and was fined $33,000.

CRA says that in addition to the fines imposed by the courts, individuals or corporations convicted of failing to file tax returns are still obligated to file the returns and pay the full amount of taxes owing, plus interest, as well as any civil penalties that may be assessed by CRA.

The agency says that 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 agency starts any action or investigation against them,” says CRA in a news release. “These individuals may only have to pay the taxes owing, plus interest.” For more information about the Voluntary Disclosures Program, visit www.cra.gc.ca/voluntarydisclosures.