Canadian packager found guilty of tax evasion

The Canada Customs and Revenue Agency last week reported that Agripak and its president, Joseph Aronovitch, had pleaded guilty to charges of evading tax.

An investigation revealed that Agripak, a company specialising in the packaging of fruit and vegetables, had claimed more than C$340,000 (€221,000) in false expenses. The company used forged invoices featuring various companies' letterheads to support its false expenses.

The investigation also revealed that the company had failed to declare more than $82,000 in income, thus evading payment of $78,436 in federal tax for the years 1996 to 1998.

Aronovitch failed to declare $57,200 in income from the company, thus evading payment of $13,000 in federal tax for the years 1996 and 1997.

The Court of Quebec sentenced Agripak Ltd. and its president to a fine of $78,153, which is 85 per cent of the tax evaded.

By Canadian law, when people are convicted of evading tax, they have to pay any fines the court imposes, as well as the full amount of the taxes they owe, plus interest.

The CCRA will challenge non-compliance with tax laws. However, individuals who have not filed tax returns for previous years, or who have not reported all their income, can still voluntarily correct their tax affairs. They will not be penalised or prosecuted if they make a full disclosure before the CCRA starts any action or investigation against them. These taxpayers will only have to pay the taxes owing, plus interest.