Tax Evasion Deterrent: Jail and Penalties

It’s not unusual for the CRA to distribute information about tax evasion at the start of the tax season; after all it’s a great reminder of the stiff consequences for those who intentionally defraud the government, like a West Vancouver resident recently did.   

Last month, Michael Scholz of West Vancouver was sentenced to 29 months in jail and fined $644,975.71. He was found guilty of three counts of committing tax-related offences under the Excise Tax Act and two counts of uttering forged documents under the Criminal Code, in the Provincial Court of British Columbia (Robson Square).

His tax crime unfolded this way:   Mr. Scholz submitted forged documents to obtain benefits relating to the construction of a West Vancouver home. Mr. Scholz forged a bare trust agreement to conceal the property's true ownership and to support his claim of ineligible input tax credits related to the costs for the residence's construction and design.

Mr. Scholz also forged a lease agreement to decrease the CRA's assessed value of the property in an attempt to reduce taxes owed.

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