Victoria area builder sentenced for tax evasion

Victoria, British Columbia, November 4, 2009... Ian D. McArthur, of Nanaimo, pleaded guilty on October 28, 2009 to one count of income tax evasion and one count of goods and services tax (GST) evasion. On November 3, 2009, he was fined $37,084 and sentenced to two years probation and 50 hours of community work service, in Nanaimo Provincial Court. The fine represents 70 percent of the income tax and GST evaded for the years 2003, 2004 and 2006.

A Canada Revenue Agency (CRA) investigation revealed that McArthur was a builder in the construction industry having built and sold new residential housing in the greater Victoria area. Records show that McArthur completed sales on homes in 2003, 2004 and 2006, however he was not registered for GST until July 2004 had not reported any business income on his 2003 and 2004 income tax returns. He filed Nil GST returns for 2004 and also failed to file personal income tax returns for 2005 and 2006. In all, McArthur failed to report taxable income of $104,008 and willfully evaded $20,877 in federal income tax and failed to remit $32,101 in GST for the 2003, 2004 and 2006 taxation years.

When individuals are convicted of GST fraud, they must still repay any amounts fraudulently received, plus interest and any civil penalties that may be assessed by the CRA. In addition, the court may fine them up to 200% of the refund sought and impose a jail term of up to five years.