The former vice-president of a London machining operation has been convicted of tax evasion and fined $80,000.
According to the Canada Revenue Agency (CRA) Rob Roy McGregor pleaded guilty to three counts of tax evasion on March 15.
A chartered accountant, McGregor failed to report $475,251 in taxable income and benefits received as vice-president of finance and administration at his former employer, Phillips Tool and Mould, in 2000, 2001 and 2002. In doing so, he evaded $136,931 in federal income taxes.
Issued Oct. 4, McGregor’s $80,000 fine is in addition to any taxes owed and any interest and civil penalties the CRA may assess.
When individuals are convicted of income tax and GST evasion, they must still repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the CRA.
The court may also fine them up to 200 percent of the taxes evaded and impose a jail term of up to five years.
Taxpayers 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 may 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 taxpayers may only have to pay the taxes owing, plus interest.
More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.