In August 2009, a British Columbia financial consultant was fined $45,000 and sentenced to 3 months in jail. She was convicted of income tax and GST evasion. The woman is reported not to have filed personal income tax returns for a three-year period. However, investigation revealed evasion of $60,906 in federal taxes on income and $15,404 in GST for a total of $76,364.
Legal Consequences of Tax Fraud: Financial Obligations and the Importance of Seeking Criminal Defence Counsel
In addition to the fine, the woman will have to pay the full amount of taxes owing, any amounts fraudulently obtained, plus interest and penalties assessed by the Canada Revenue Agency.
If you are being audited by the Canada Revenue Agency and have any concerns about the audit developing into a criminal investigation, it is important to consider speaking to a criminal defence lawyer. Remember, that any information you give your accountant is not protected by solicitor and client privilege.