Ministry of Revenue

Record Company President Avoids Taxes And Ends Up Paying More Than Double

Court Penalties For Tax Evader Total More Than $139,000

    TORONTO, July 3 — A Ministry of Revenue investigation found the
director of a Toronto record company collected $116,542 in Provincial Sales
Tax (PST) but failed to remit any of the tax.
    The ministry's investigation revealed that Metropolis Records 1997 Corp.
did not pay any of the PST it collected from customers between November 1999
and March 2005. Around the time of a ministry audit, Mark Stancek, the
company's president and sole director, abandoned Metropolis Records 1997
Corp., and formed a new corporation to carry on a similar business.
    On June 18, in Toronto, Stancek was fined $116,542, the same amount as
the PST owed. The insolvent corporation was given a suspended sentence.
Stancek must also pay a surcharge of $23,308.40 to the Ontario Victims'
Justice Fund, bringing the total court-imposed penalties to $139,850.40. In
addition to fines and court surcharges, convicted businesses must repay all
taxes owing, plus civil gross negligence penalties and interest.
    The Ontario Ministry of Revenue operates a voluntary disclosure program.
Corporations and individuals may come forward and voluntarily report past
violations of provincial tax laws and pay any amount owing. Prosecution and
civil negligence penalties are waived in such cases. To qualify for immunity
from prosecution and penalties, a disclosure must be voluntary - it cannot be
prompted by a request for access to a taxpayer's business records or other
ministry enforcement action.

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                 For more information visit www.rev.gov.on.ca
    

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