A shareholder for a Carbonear engineering consulting company has been fiend $135,303 after pleading guilty to three counts of tax evasion.
Louise Harris of Harris & Associates Limited entered pleas in St. John's provincial court on Monday, May 7, according to a news release issued by the Canada Revenue Agency (CRA).
A CRA investigation determined that Harris, as the main bookkeeper for the company, evaded taxes by understating income for herself, the company, as well as the other shareholder of the company, Thomas Harris. The following is a breakdown:
• $42,845 in taxes was evaded by understating almost $340,000 in income on the 2007 and 2008 corporate income tax returns for the company;
• $59,033 in taxes was evaded by understating almost $230,000 in income on her 2006, 2007 and 2008 personal income tax returns; and
• $33,425 in taxes was evaded by understating over $132,206 in income on Thomas Harris’ 2006, 2007 and 2008 personal income tax returns.
The investigation revealed that personal expenses of both Louise Harris and Thomas Harris were being claimed as business expenses and paid with company funds. Items claimed include a personal condo in Florida and related expenses such as travel to and from Florida, meals and entertainment, as well as payments to their personal credit cards.
According to court records, the total fine is payable over 60 months with a minimum monthly payment of $2,225. The fine represents 100 per cent of the federal tax she knowingly tried to evade. In addition to this fine, Harris & Associates Limited, Louise Harris and Thomas Harris each will have to pay all federal taxes owing, plus related interest and penalties.