Stiff fine for tax eva­sion

Share­holder of Car­bon­ear con­sult­ing firm pleads guilty to three counts

The Compass - - FRONT PAGE -

A share­holder for a Car­bon­ear en­gi­neer­ing con­sult­ing com­pany has been fiend $ 135,303 af­ter plead­ing guilty to three counts of tax eva­sion.

Louise Har­ris of Har­ris & As­so­ciates Limited en­tered pleas in St. John’s pro­vin­cial court on Mon­day, May 7, ac­cord­ing to a news re­lease is­sued by the Canada Rev­enue Agency (CRA).

A CRA in­ves­ti­ga­tion de­ter­mined that Har­ris, as the main book­keeper for the com­pany, evaded taxes by un­der­stat­ing in­come for her­self, the com­pany, as well as the other share­holder of the com­pany, Thomas Har­ris. The fol­low­ing is a break­down:

• $42,845 in taxes was evaded by un­der­stat­ing al­most $340,000 in in­come on the 2007 and 2008 cor­po­rate in­come tax re­turns for the com­pany;

• $59,033 in taxes was evaded by un­der­stat­ing al­most $230,000 in in­come on her 2006, 2007 and 2008 per­sonal in­come tax re­turns; and

• $33,425 in taxes was evaded by un­der­stat­ing over $132,206 in in­come on Thomas Har­ris’ 2006, 2007 and 2008 per­sonal in­come tax re­turns.

The in­ves­ti­ga­tion re­vealed that per­sonal ex­penses of both Louise Har­ris and Thomas Har­ris were be­ing claimed as busi­ness ex­penses and paid with com­pany funds. Items claimed in­clude a per­sonal condo in Florida and re­lated ex­penses such as travel to and from Florida, meals and en­ter­tain­ment, as well as pay­ments to their per­sonal credit cards.

Ac­cord­ing to court records, the to­tal fine is payable over 60 months with a min­i­mum monthly pay­ment of $2,225. The fine rep­re­sents 100 per cent of the fed­eral tax she know­ingly tried to evade. In ad­di­tion to this fine, Har­ris & As­so­ciates Limited, Louise Har­ris and Thomas Har­ris each will have to pay all fed­eral taxes ow­ing, plus re­lated in­ter­est and penal­ties.

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