Enforcement Notification - Tax evasion - Surrey real estate developer sentenced for GST/HST fraud

VANCOUVER, April 16, 2018 /CNW/ - The Canada Revenue Agency (CRA) announced that real estate developer Rajinder Singh Mann of Surrey, British Columbia, was sentenced to a conditional sentence order of two years less a day, which includes nine months house arrest and 150 hours of community service. He was also given two years to pay the total fine of $462,092, representing 100% of the goods and services tax/harmonized sales tax (GST/HST) that he evaded. Mr. Mann pleaded guilty on January 29, 2018, in the Provincial Court of British Columbia, to seven counts of GST/HST fraud under the Excise Tax Act.

Mr. Mann is the sole director and shareholder of Millenium Century Investments Ltd. ("Millenium"), a real estate development company. A CRA investigation determined that Mr. Mann contravened the Excise Tax Act by failing to report and remit the GST/HST collected from the sale of 44 units in a Maple Ridge townhouse complex, built by Millenium. All 44 units were sold between May 2010 and October 2011.

All case-specific information above was obtained from the court records.

Wilfully failing to follow tax laws could result in serious consequences, including reassessments, the imposition of civil penalties and criminal tax investigations and prosecutions resulting in the imposition of court fines, jail time and a criminal record. When taxpayers are convicted of GST 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. If convicted of fraud under Section 380 of the Criminal Code, an individual can face up to 14 years in jail.

If you have made an omission in your dealings with the CRA, made a tax mistake or left out details about income on your tax return, the Agency may give you a second chance to correct your tax affairs and avoid criminal prosecution. The Voluntary Disclosures Program (VDP) may give you the opportunity to come forward, make things right, and have peace of mind. Disclosures that are made before the CRA launches an enforcement action such as an audit or criminal investigation may only result in you having to pay taxes owed plus interest. More information on the VDP can be found on the CRA's website at Canada.ca/taxes-voluntary-disclosures.

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Associated Links

Offshore Tax Informant Program
Informant Leads Program
Voluntary Disclosures Program

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SOURCE Canada Revenue Agency