Canada Revenue Agency charges tax protesters with fraud

The Canada Revenue Agency (CRA) has laid tax fraud charges against four members of a group of tax protesters.

Montréal residents Pierre Cardin and Sylvain Quirion, Jean-Marc Paquin of Laval and Guylaine Tremblay of Contrecoeur are alleged to have advised people to make claims totalling CAN$19,057,621, (US$14,819,778).

Between May 2010 and May 2011, they are said to have helped 50 individuals file tax returns or adjustment requests in order to claim non-deductible expenses, thus attempting to evade a total of CAN $1,080,930 (US$840,564) in federal income tax.

CRA advice

The CRA is warning Canadians to beware of 'tax protesters' who claim they do not have to pay tax on the income they earn. Canadian courts have rejected these arguments.

For those involved in tax protester schemes, the CRA will reassess income tax, calculate interest and impose penalties. In addition, after convicting someone for tax evasion, the court may impose a fine of between 50% and 200% of the tax evaded and a jail term of up to five years.

For those that have made a tax mistake or omission, the CRA has a Voluntary Disclosures Program. If taxpayers make a valid disclosure before they become aware that the CRA is taking action against them, they may only have to pay the taxes owing plus interest.

The CRA has set up a free subscription service to help Canadians stay up to date on its enforcement efforts.

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

The Canada Revenue Agency (CRA) has laid tax fraud charges against four members of a group of tax protesters.

Montréal residents Pierre Cardin and Sylvain Quirion, Jean-Marc Paquin of Laval and Guylaine Tremblay of Contrecoeur are alleged to have advised people to make claims totalling CAN$19,057,621, (US$14,819,778).

Between May 2010 and May 2011, they are said to have helped 50 individuals file tax returns or adjustment requests in order to claim non-deductible expenses, thus attempting to evade a total of CAN $1,080,930 (US$840,564) in federal income tax.

CRA advice

The CRA is warning Canadians to beware of 'tax protesters' who claim they do not have to pay tax on the income they earn. Canadian courts have rejected these arguments.

For those involved in tax protester schemes, the CRA will reassess income tax, calculate interest and impose penalties. In addition, after convicting someone for tax evasion, the court may impose a fine of between 50% and 200% of the tax evaded and a jail term of up to five years.

For those that have made a tax mistake or omission, the CRA has a Voluntary Disclosures Program. If taxpayers make a valid disclosure before they become aware that the CRA is taking action against them, they may only have to pay the taxes owing plus interest.

The CRA has set up a free subscription service to help Canadians stay up to date on its enforcement efforts.

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.