Indo-Canadian Businessman From Surrey Sentenced For Income Tax Evasion

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Harchet Kaler failed to report a total of $517,744 in income on his 2005 and 2006 personal income tax returns. Kaler, who makes his living by buying and selling real estate, purchased two properties in Surrey, in November of 2004, in his brother’s name. The first property was purchased with two other partners, and was sold in August 2005 resulting in Kaler realizing $470,753 in income from this transaction. The second property was purchased with four other partners and was sold in January 2006.  Kaler’s income from this transaction was $46,991. Kaler failed to report the proceeds of these transactions in his 2005 and 2006 income tax returns thereby evading $136,519 in federal income tax in 2005 and $12,381 in federal income tax in 2006.

SURREY – The Canada Revenue Agency (CRA) said in a press release Friday that Harchet Kaler of Surrey, British Columbia, was sentenced Thursday in Robson Square Provincial Court after pleading guilty to one count of tax evasion.

Kaler was fined $111,675, representing 75 percent of the federal tax evaded, and also given an eighteen month Conditional Sentence.

A CRA investigation determined that Kaler failed to report a total of $517,744 in income on his 2005 and 2006 personal income tax returns.

It was found that Kaler, who makes his living by buying and selling real estate, purchased two properties in Surrey, in November of 2004, in his brother’s name. The first property was purchased with two other partners, and was sold in August 2005 resulting in Kaler realizing $470,753 in income from this transaction.

The second property was purchased with four other partners and was sold in January 2006.  Kaler’s income from this transaction was $46,991.

Kaler failed to report the proceeds of these transactions in his 2005 and 2006 income tax returns thereby evading $136,519 in federal income tax in 2005 and $12,381 in federal income tax in 2006.

The preceding information was obtained from the court records.

When taxpayers are convicted of income tax evasion, they must still repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the CRA. In addition, the court may fine them up to 200% of the taxes evaded and impose a jail term of up to five years.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them.