Hefty fine imposed in tax evasion case
Posted May 10th, 2012 by Nathan Skillen with No Comments
Original Article: http://www.thetelegram.com/News/Local/2012-05-09/article-2974409/Hefty-fine-imposed-in-tax-evasion-case/1
Louise Harris, a shareholder for a Carbonear engineering consulting company, Harris & Associates Limited, was fined $135,303 Monday after pleading guilty in provincial court in St. John’s to three counts of tax evasion.
According to a news release, a Canada Revenue Agency (CRA) investigation determined that Harris, as the main bookkeeper for the company, evaded taxes by understating income for herself, the company, as well as the other shareholder of the company, Thomas Harris.
• $42,845 in taxes was evaded by understating almost $340,000 in income on the 2007 and 2008 corporate income tax returns for the company;
• $59,033 in taxes was evaded by understating almost $230,000 in income on her 2006, 2007 and 2008 personal income tax returns; and
• $33,425 in taxes was evaded by understating over $132,206 in income on Thomas Harris’ 2006, 2007 and 2008 personal income tax returns.
The investigation revealed that personal expenses of both Louise Harris and Thomas Harris were being claimed as business expenses and paid with company funds. Items claimed include a personal condo in Florida and related expenses such as travel to and from Florida, meals and entertainment, as well as payments to their personal credit cards.
The fine is payable over 60 months with a minimum monthly payment of $2,225.
The fine represents 100 per cent of the federal tax Harris knowingly tried to evade.
In addition to the fine, Harris & Associates Limited, Louise Harris and Thomas Harris each will have to pay all federal taxes owing, plus related interest and penalties.
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Nathan Skillen is the Co-Founder of iHonest.com. He's also an Independent Filmmaker and Videographer. Connect with him on LinkedIn and Twitter. |
Posted in
fraud
Tags fraud tax evasion
