False Statements on Tax Returns Leads to Fine, Jail Time

According to an  article posted on the Canadian Revenue Agency (CRA) website, an Ottawa woman was recently sentenced to 30 days house arrest and ordered to pay a fine of $47,789 due to false statements made on her income tax return.

The article states Cemila Smikle-Kuznetzov pleaded “guilty to one count of making false statements in the income tax returns of individuals to obtain or claim unwarranted tax credits under the Income Tax Act" on August 1, 2014.

According to the article, an investigation conducted by the CRA found that between 2005 and 2008, Smikle-Kuznetzov used a variety of aliases on her returns. During that time, she also impersonated her sister, and received benefits for children she does not have. With the child claim, she applied for the Canada Child Tax Benefit, the Universal Child Care Benefit and GST credits. The claims were made for twins and triplets that did not exist, and the claim was supported by false documentation, including birth registry papers.

The article states:

"If you have ever made a tax mistake or omission, the CRA is offering you a second chance to make things right through its Voluntary Disclosures Program (VDP). If you make a valid disclosure before you become aware that the CRA is taking action against you, you may only have to pay the taxes owing plus interest. More information on the VDP can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures."