Defence urges judge to avoid ‘excessive’ sentence in tax fraud case

EDMONTON The defence lawyer for a tax preparer found guilty of filing $2.9-million in false claims with the Canadian Revenue Agency (CRA) urged the judge in the case not to impose an “excessive” sentence.

Prosecutors in the case argued that 60-year-old Chander Sharma should serve an eight-year to 10year sentence, be ordered to pay $300,000 in restitution to 10 of his former clients, and pay a $300,000 fine.

But defence lawyer Paul Moreau argued Wednesday that a decade in prison would be too large of a penalty for the crime, and that Sharma should not be fined because he doesn’t have the means to pay it off. Moreau didn’t object to a restitution order being imposed, and suggested a prison sentence of two to six years.

In August 2017, Sharma was convicted of one count of fraud over $5,000 for filing false or inflated expenses on behalf of 11 clients when he submitted both professional and personal income tax returns for the years 2008, 2009 and 2010. The $2.9 million in false claims resulted in about $565,000 in lost tax revenue for the federal government. Court heard Sharma kept about $300,000 for himself.

Court heard that although Sharma told the clients his fee was 50 per cent of any refund received, he also indicated he would go through their old tax returns, up to 10 years back, and recover money that they were owed.

Sharma then filed expenses related to self-employment, employment and farming that were either inflated or “wholly fictitious.”

Court heard Tuesday that Sharma’s scheme left his clients in debt to the CRA for amounts between $19,000 and $150,000. The debt forced several people to declare bankruptcy, others to lose their businesses, and two people left living on the street.

During his submissions, Moreau said that while Sharma’s former clients had been “incidentally affected” by the fraud, the CRA is named as the victim according to the charge. He also said that while Sharma took payment from the clients’ returns, much of the money the clients received as a result of the fraudulent returns was never actually theirs.

“It’s an unusual pattern of victimization,” Moreau said.

While providing information about his client’s personal circumstances, Moreau said that while a psychiatric assessment provided to the court found that Sharma was feigning a mental illness, the doctor who prepared the report also

The $2.9 million in false claims resulted in about $565,000 in lost tax revenue for the federal government.

found that Sharma is not coping well with the stress of the criminal case. He also said his client’s physical health is “fragile.”

Court also heard Sharma has a related criminal record. In February 2010, he was convicted of fraud and uttering a forged document in a different scheme that involved stealing $150,000 in income-tax payments.

Provincial court Judge Joyce Lester reserved her decision on sentencing, and said she will deliver it on Dec. 13.