Brampton, Ontario, May 6, 2013...The Canada Revenue
Agency (CRA) announced today that Mr. Imad Kutum pleaded guilty on
November 27, 2012 in the Ontario Court of Justice in Brampton, to one
count of fraud over $5,000 under the Criminal Code. He was sentenced to two years in jail and a fine of $100,000.
Mr. Kutum, a chartered accountant, operated Kutum and Associates,
providing tax preparation services and accounting related services. A
CRA investigation discovered that false charitable donation claims
totalling $3,674,000 were made on 487 income tax returns prepared by Mr.
Kutum for clients for the 2003 to 2008 tax years. The false claims were
supported by fraudulent charity receipts. The false claims reduced the
amount of federal taxes owed by $1,045,111.
The information in this news release was obtained from the court records.
“Canadian taxpayers must have confidence in the fairness of the tax
system,” said Darrell Mahoney, Assistant Commissioner, Ontario Region,
CRA. “To maintain that confidence, the Canada Revenue Agency is
determined to hold tax evaders accountable for their actions.”
Taxpayers who claim false expenses, credits or rebates from the
government are subject to serious consequences. They are liable not only
for corrections to their tax returns and payment of the full amount of
tax owing, but also to penalties and interest. In addition, if convicted
of tax evasion, the court may fine them up to 200% of the tax evaded
and sentence them for up to a five-year jail term.
Taxpayers 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 may not be penalized or prosecuted if they make a
valid disclosure before they become aware of any compliance action being
initiated by the CRA against them. These taxpayers may only have to pay
the taxes owing, plus interest. More information on the Voluntary
Disclosures Program (VDP) can be found on the CRA's Web site at www.cra.gc.ca/voluntarydisclosures.
Further information on convictions can also be found in the Media Room on the CRA website at
www.cra.gc.ca/convictions.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
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