Tax evasion costly for Quebec bar
Never forget that the Canada Revenue Agency (CRA) doesn't tolerate tax evasion, and it has the power to do something about it. A recent case in point: a Quebec company, Disco-Spec Dagobert Inc., was fined $439,527 for tax evasion. This amount represents 100% of the taxes that the company sought to evade. Additionally, the company will have to pay the full amount of the taxes owing, plus related interest and penalties that have accrued.
The CRA investigation revealed that Disco-Spec voluntarily contravened the Income Tax Act throughout the period 2007-2010 by reducing its taxable income by a total of $2.5 million using various methods. The company also claimed false deductions.