Enforcement notice – Tax evasion: Tax fraud related to the Scientific Research and Experimental Development Tax Incentive Program: two Quebec taxpayers sentenced

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MONTREAL, June 10, 2022 /CNW Telbec/ – The Canada Revenue Agency (CRA) announces that Alain Côté, of the accounting firm ACGI Inc., of The falland Salvatore Leodirector of Impresa International Specialty Foods Inc. (Impresa), based in Montreal North, were convicted of fraud Montreal Court. Mr. Côté pleaded guilty to March 26, 2021and was convicted on June 8, 202220 months suspended prison sentence and 240 hours of community service, in addition to a fine $50,000. Mr. Leo pleaded guilty to June 8, 2022, for the same scheme and he was given a 15-month suspended prison sentence. Mr. Leo also paid a $421,360 fine, equivalent to the total amount of tax credits collected illegally.

The CRA investigation revealed that Alain Côté used the identity of clients of his accounting firm, ACGI inc., to create false invoices for the benefit of Impresa, managed by Salvatore Leo. This program enabled Impresa to receive $421,360 in fraudulent investment tax credits for the 2008 to 2011 taxation years under the Scientific Research and Experimental Development Tax Incentive Program.

All case-specific information above was obtained from court records.

Tax evasion is a crime. Falsifying records and claims, willfully not reporting income, or inflating expenses can result in criminal charges, prosecution, jail time, and a criminal record. Of April 1, 2020at March 31, 2021there were 36 convictions, with court-imposed fines totaling $5,172,844. These taxpayers were condemned for having voluntarily evaded the payment of sums totaling $10,902,950 in federal tax. Of the 36 convictions, 15 people were sent to prison for a total of 26.2 years.

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.

The CRA is committed to maintaining the integrity of from Canada taxation, thereby contributing to the social and economic well-being of Canadians, particularly in these unprecedented times. The CRA continues to vigorously pursue tax evasion and misrepresentation with all the tools at its disposal. The CRA ensures that individuals and businesses declare all income earned and only claim the benefits to which they are entitled, so that important benefit programs can be administered to those who need them. Any person or business who claims losses or benefits to which they are not entitled, including ineligible claims related to new COVID-19 related benefits, will face serious consequences.

The CRA has set up a free subscription service to help Canadians keep up to date with the CRA’s enforcement efforts.

Related links
Lead Program
Voluntary Disclosures Program
Scientific Research and Experimental Development Tax Incentive Program

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SOURCE Canada Revenue Agency

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View original content: http://www.newswire.ca/en/releases/archive/June2022/10/c4544.html


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