Ministry of Revenue

$78,500 In Fines Handed Down For Sales Tax Evasion

Business Failed to Remit $224,090 In PST Collected From Customers

    STRATFORD, ON, July 9 — A Ministry of Revenue investigation
revealed that for a five-year period the owner of a North Perth auto sales
business filed false returns and failed to remit $224,090 in Provincial Sales
Tax (PST) collected from customers.
    Mark Davidson was charged in 2006, after a ministry investigation
revealed that his business filed false monthly returns and failed to remit PST
collected from customers between July 2000 and March 2005.
    On April 10 in Stratford, Mr. Davidson, owner of Mark's Auto Mart,
pleaded guilty to a charge of evading compliance with Ontario's Retail Sales
Tax Act and was fined $78,500 with 730 days to pay. Davidson must also pay a
surcharge of $19,625 to Ontario's Victims' Justice Fund, bringing the total
court-imposed penalty to $98,125.
    The Crown and Mr. Davidson have both appealed the sentence.

    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.

    

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

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