Canada: Restaurant fined $89,753

The Canada Revenue Agency (CRA) announced on September 30th 2014, that Jezz Shi-Cheng Huang, of Calgary, Alberta, pleaded guilty in Provincial Court to tax evasion and failing to remit goods and services tax (GST) for his company 1320530 Alberta Ltd, operating as Edgemont City Asian Cuisine. The court imposed a total fine of $89,753 for both the income tax and GST offences…

For the period of July 2007 to June 2010 Mr. Huang, the sole Director and owner of the company, failed to report cash sales of $1,123,230. The unreported sales resulted in $108,213 of federal tax evaded. He also failed to remit GST on the cash sales for the period of July 2007 to December 2010. The unremitted GST for this period was $71,293.

Mr. Huang used an electronic point of sales system that recorded all sales, whether by credit card, debit card or cash, but he did not report the cash sales on the corporate income tax return. The system also recorded the GST for these transactions but it was not remitted to the CRA.

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.

source: http://www.cra-arc.gc.ca/nwsrm/cnvctns/ab/ab140930-eng.html