South Asian Tax Preparer Gets House Arrest For Tax Evasion

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Shiraz Kaba of Burnaby was sentenced in Robson Square Provincial Court to a fine of $237,717 and a two year Conditional Sentence Order, including 16 months of  house arrest, the Canada Revenue Agency (CRA) announced this week.

By R. Paul Dhillon

BURNABY – A South Asian tax preparer pleaded guilty to tax evasion and was sentenced to house for his crime.

Burnaby resident, Shiraz Kaba was sentenced in Robson Square Provincial Court to a fine of $237,717 and a two year Conditional Sentence Order, including 16 months of  house arrest, the Canada Revenue Agency (CRA) announced this week.

Kaba pleaded guilty on September 6, 2011 to making false statements and tax evasion. The fine represents 100% of the federal tax he attempted to evade on his clients’ tax returns.

He was ordered to pay $100,000 of the fine within two weeks and then $700 per month starting February 1, 2012, until the fine is paid in full. Failure to pay the monthly amount by the 15th of a particular month would cause the debt to be due in full.

Kaba’s business included the preparation and filing of personal income tax returns for his clients. A CRA investigation found that during the 2000 to 2007 tax years, Kaba fraudulently reported $1,188,684 in false expenses and deductions on the returns of 77 of his clients.

It was determined that there was no collusion between Kaba and his clients. The clients were not aware that Kaba reported false expenses and deductions on their tax returns until contacted by the CRA. The fraud resulted in the evasion of $203,895 in federal tax payable and an overpayment of $33,821 in Canada Child Tax Benefits.

The preceding information was obtained from the court records.

When individuals are convicted of income tax evasion, the court may fine them, upon summary conviction, up to 200% of the taxes evaded and impose a jail term of up to two years.

Individuals 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 will 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. These individuals may only have to pay the taxes owing, plus interest.

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