The Canada Revenue Agency (CRA) announced recently that Randal Sharp, 50, of Yorkton, Saskatchewan, was sentenced in Yorkton Provincial Court on May 14, 2012 for failing to file personal income tax and goods and services tax (GST) returns. He was fined $16,000 and sentenced to sixty (60) days in jail. Mr. Sharp originally entered a guilty plea to these charges on January 24, 2012. The fine levied is for failing to file his personal tax returns for 2005 to 2007 and GST returns for 2003 to 2007 for Sharp Refrigeration Service.
Mr. Sharp was also previously fined on May 1, 2009 in relation to his 2005 personal tax return and the 2003 to 2005 GST returns for Sharp Refrigeration Service. A court order to file was issued at that time and Mr. Sharp did not comply.
The preceding information was obtained from the court records.
When individuals are convicted of failing to file tax returns, in addition to any fines imposed by the courts, they must still file the returns and pay the full amount of taxes owing, plus interest owed, as well as any civil penalties that may be assessed by the CRA.
Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest.
More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's Web site at www.cra.gc.ca/voluntarydisclosures.
