Ministry of Revenue

Investigation uncovers sales tax evasion

Court imposes $25,000 in penalties

    LONDON, ON, July 9 — A Ministry of Revenue investigation revealed
that the former manager of two London eateries failed to report and remit
$59,685 in Provincial Sales Tax (PST) collected from customers.
    On May 1 Sivapatham Markandu was fined $20,000 after pleading guilty to
filing sixteen false returns while employed by The Honest Lawyer Restaurant
and Downtown Kathy Brown's in 2003 and 2004. Markandu was given one year to
pay his fine plus a surcharge of $5,000 to the Ontario Victims' Justice Fund.
    Neither the company that operates The Honest Lawyer and Downtown Kathy
Brown's, nor its owners, were charged. All of the tax owing has been repaid,
along with civil penalties and interest.
    The 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 amounts owing. Prosecution and
civil negligence penalties are waived in such cases. To qualify for immunity
from prosecution and penalties, however, a disclosure must be truly voluntary
- it cannot be prompted by a request for access to a taxpayer's business
records or other ministry enforcement action.

    Disponible en français

    

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

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