A Calgary man was given a 15-month suspended prison sentence and fined $643,228 after pleading guilty to tax evasion under the Income Tax Act.
The penalty was announced by the Canada Revenue Agency (CRA) on Monday after the ruling was issued last week.
The fine imposed on Rodney Potrie, who was a director of Calgary-based RAP Designs Inc., represents 100% of the taxes evaded.
Potrie pleaded guilty in November 2021 after an CRA investigation found RAP Designs Inc. purchased 110.94 acres of vacant land in Carstairs in 2008 for $3,120,000.
“He then undertook a series of land transfers which he knew to be taxable and eventually sold it later that year for $7,500,000. Although he knew it was taxable, he produced a Void T2 tax return for 2008, failing to report $3,472,962 of income,” one output read.
“It has been determined that Mr. Potrie intentionally evaded $643,228 in income tax.”
Between April 1, 2020 and March 31, 2021, there were 36 tax evasion convictions with court-imposed fines totaling $5,172,844, according to the CRA.
“These taxpayers were convicted of willfully evading payment amounts totaling $10,902,950 in federal taxes. Of the 36 convictions, 15 people were sent to prison for a total of 26.2 years,” reads the statement. a statement.
“In addition to court-imposed fines and/or jail time, taxpayers found guilty must pay the full amount of tax owed, plus related interest and any penalties imposed by the CRA.”