Local businessman fined $63,200 for income tax and GST evasion

Winnipeg, Manitoba, November 12, 2009…The Canada Revenue Agency (CRA) announced today that Mr. Yeoun-Kyu Jang, a Winnipeg retailer, was recently fined a total of $63,200 in the Provincial Court of Manitoba after pleading guilty to charges of tax evasion.  The fines represent 75% of the income tax and 50% of the GST evaded.

The CRA investigation revealed that Jang failed to report more than $196,000 of business income and $19,600 of GST.  CRA enforcement officers, working closely with Province of Manitoba Retail Sales Tax investigators, found that Mr. Jang initiated a scheme of double bookkeeping in an attempt to avoid payment of income tax for the 2003 through 2005 tax years. The ploy involved keeping separate books and attempting to suppress cash sales. 

When individuals or corporations are convicted of tax evasion, they have to pay the full amount of tax owing, plus interest, and any penalties the CRA assesses. In cases of gross negligence, the Income Tax Act and Excise Tax Act allow the CRA to assess a penalty of up to 50% of the unpaid tax. In addition, the court may, on summary conviction, fine them 50% to 200% of the tax evaded, and sentence them to a jail term of up to two years.

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. These individuals may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures