Ministry of Revenue

Toronto Corporation Fined For Evading Retail Sales Tax

Court Orders More Than $70,000 In Penalties

    TORONTO, July 23 — A corporation operating a property management
company did not obtain a permit to transact retail business in Ontario and
collected more than $100,000 in sales tax it never paid to the province.
    On July 10, 2007, 1482241 Ontario Limited was convicted of evading
payment of Retail Sales Tax (RST) it had collected over a five-year period.
The corporation was fined $57,200 and ordered to pay a surcharge of $14,300 to
the Ontario Victims' Justice Fund.
    The tax evasion was uncovered during a Ministry of Revenue investigation.
It was also discovered that the corporation had never applied for an RST
vendor permit as required by the province. The corporation, which leased
commercial space and rented parking spaces, collected $114,400 in RST from
customers but never reported or paid the tax.
    In addition to court-imposed fines and surcharges, businesses convicted
of tax offences must repay any taxes owing, plus civil negligence penalties
and interest. 1482241 Ontario Limited has since made payment in full,
including penalties, taxes and interest, and has obtained an RST vendor
permit.
    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, 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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