Brampton, Ontario, September 24, 2013… The Canada
Revenue Agency (CRA) announced today that on September 18, 2013, Manjula
Makkar and Varun Makkar, of Brampton, Ontario, pleaded guilty in the
Ontario Court of Justice in Brampton to one count each of income tax
evasion under the Income Tax Act. Manjula Makkar was fined $65,104 while Varun Makkar was fined $8,802, representing 50% of the total income taxes evaded.
The Court heard that the Makkars, who are related, provided tax
preparation services through a partnership named Makkar and Makkar Tax
Services (MMTS), operating in Brampton, Ontario. The CRA determined that
the Makkars earned income from the partnership which was not reported
on their personal income tax returns for the 2008, 2009 and 2010 tax
years. The Court also heard that Manjula Makkar failed to report
additional income earned outside the MMTS partnership through her
delivery of tax preparation, bookkeeping and accounting services during
the same three year period. In total, Manjula Makkar failed to report
$531,457 in income, thereby evading $130,208 in taxes, while Varun
Makkar failed to report $120,600 in income, thereby evading $17,606 in
income taxes.
The Court levied the minimum 50% fine after learning that the Makkars
cooperated fully with the CRA throughout the investigation. As well,
the Makkars have already paid approximately 100% of the amounts they
would have owed if they had properly filed their returns.
The preceding information was obtained from the court records.
“Tax evasion costs all of us,” said Vince Pranjivan, acting Assistant
Commissioner of the Canada Revenue Agency, Ontario Region. “The job of
our investigators and auditors is to make sure that all Canadians pay
the tax they owe.”
When taxpayers are convicted of income tax and GST evasion, they
still must repay the full amount of taxes owing, plus interest and any
civil penalties that may be assessed by the CRA. On summary conviction,
the court may fine an individual 50% to 200% of the tax evaded, and
sentence them to a jail term of up to two years. In cases of gross
negligence, the Income Tax Act also allows the CRA to assess a penalty
of up to 50% of the unpaid tax or the improperly claimed benefit.
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 website 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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