News release

Ontario tax preparer receives large fine and conditional custodial term for evading payment of GST and other federal taxes

SUDBURY, Ontario, November 5, 1999 - The Canada Customs and Revenue Agency (CCRA) reported today that Thérese Lacroix of Hearst, Ontario, was fined $1,290,824 by Ontario provincial court in Timmins after pleading guilty to wilfully evading $645,412 of Good and Services Tax (GST) and other federal taxes.

An extensive CCRA investigation revealed that during the 1989 to 1994 taxation years, Lacroix, who ran a bookkeeping business, used sophisticated schemes in failing to report $2,259,501 on the personal income tax returns of 48 clients, consequently evading $452,962 in federal income tax. The court also found that between 1991 and 1994, Lacroix evaded $134,699 of GST on behalf of 26 clients.

Some of the schemes used by Lacroix to avoid reporting income included the understating of gross business income of clients, advising clients to use separate bank accounts, erasing amounts recorded by clients in their journals, removing documents from the files of clients, and forging signatures on false child care expense receipts.

The CCRA investigation also revealed that from 1990-1994, Lacroix failed to declare $244,463 of taxable income from her bookkeeping business on personal income tax returns, consequently evading an additional $57,750 in federal taxes.

Lacroix was fined a total of $1,290,824, an amount equal to 200% of the amount she attempted to evade, andsentenced to a conditional custodial term of two years less one day, with custody to be served in the community. This sentence will be followed by two years of probation with the most important term being that Lacroix is not to provide business or tax advice to anyone but her spouse. Lacroix also is required to pay the full amount of GST and other federal taxes owing, plus interest and penalties.

Canadians have to be confident that the tax system is fair. The CCRA will take action against individuals and organizations who try to evade taxes. People who deliberately evade taxes, fraudulently claim refunds, or fail to make the proper remittances force honest Canadians to pay more than their fair share.

Individuals or organizations who have not filed returns for previous years, have not reported all their income, or have claimed fraudulent refunds can still voluntarily correct their tax affairs. Through the Voluntary Disclosure Program, the CCRA does not penalize or prosecute if a full disclosure is made before the Department starts any action or investigation. Individuals or organizations will only have to pay the taxes owing plus interest.

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