Hickey Construction Ltd. was fined $34,900 in Happy Valley-Goose Bay provincial court on June 21 on tax evasion charges under the federal Excise Tax Act.
The Canada Revenue Agency said in a news release today, the fine represents 100 per cent of the unpaid taxes.
Michael Hickey, one of the company’s two shareholders, handled the company’s daily bookkeeping and prepared the company’s harmonized sales tax (HST) returns.
The CRA said its investigation revealed that in 2006 Hickey failed to report two sales invoices, totalling $249,290 and understated the HST collected by $34,900.
Counsel for the company advised the court of its intention to immediately pay the fine in full.
The CRA says taxpayers, 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 may 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 taxpayers may only have to pay the taxes owing, plus interest.
More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's Web site at www.cra.gc.ca/voluntarydisclosures.