2017 Tax Convictions by CRA Reap Big Penalties and Jail for Some

CRA has been busy announcing new convictions at the start of 2017, a great deterrent for potential tax evaders at the start of tax season. It’s always best to come forward to declare shortfalls in income reporting or overstatements of tax deductions or credits to avoid expensive interest, penalties and potential jail time. Here’s what happened to those who didn’t. . .

Here’s what happened to Canada’s most recent tax evaders, as per CRA’s news releases:

Vancouver, BC, February 28, 2017.   BC resident Michael Spencer Millar, was sentenced in the Supreme Court of British Columbia to 2.5 years in jail and fines of $24,000  as a result of being charged for income tax evasion, GST evasion, and counselling fraud for the 2004 to 2008 tax years as well as failure to collect and remit GST for the 2005 to 2008 tax years.  Mr. Millar was an “educator” with the Paradigm Education Group which counselled people across Canada to evade taxes. The Judge stated that Mr. Millar deliberately encouraged his students to file false income tax returns by not declaring their taxable income.

Edmonton, AB January 5, 2017.   A Grande Prairie Alberta couple who evaded taxes of $486,402 for 2007 and 2008 are spending time in jail.  Robert Dale Steinkey, age 60, was sentenced in the Provincial Court of Alberta to a fine of $322,278 and a conditional jail sentence of 22 months while his wife Terry, age 63, was sentenced to a fine of $164,124 and a conditional jail sentence of 18 months. In addition, both will have to repay the full amount of taxes owing plus interest.  The couple were introduced to the Paradigm Education Group and adopted Paradigm’s beliefs that, as “natural persons,” they were not subject to the Income Tax Act.

Newmarket, ON, January 23, 2017.  Wolfgang John Wilm of Whitby, Ontario was sentenced on January 20, 2017 to 20 months in jail for tax evasion and was fined a total of $552,976 for failing to file returns and pay taxes on over $2 million in income from self-employment from 2007 to 2010. In addition to the fine, he will also have to pay the full amount of tax owing, plus related interest and any penalties assessed by the CRA.

See your tax advisor if you have a guilty conscience.  Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

Evelyn Jacks is President of Knowledge Bureau, Canada’s leading educator in the tax and financial services, and author of 52 books on family tax preparation and planning including Family Tax Essentials: How to Build a Wealth Purpose with a Tax Strategy.


Posted under: Income Tax

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