One of Canada’s longest running tax investigations has ended in a Brampton, ON, court, according to Blacklock’s Reporter. “The Canada Revenue Agency (CRA) is dedicated to maintaining the integrity of Canada’s tax system,” said CRA managers in a statement.Former E and F Tax Associates partner Festus Bayden has been jailed for three years. The CRA said it “works to make sure that individuals and businesses report all income earned.”Bayden admitted guilt in a charity fraud scheme after 10 years as a fugitive. Former E and F Tax Associates partner Eric Armah pleaded guilty and was jailed in 2011. Investigators found E and F Tax Associates falsified 7,000 tax returns by selling clients fake receipts for donations to non-existent charities at 10 cents on the dollar plus a $50 preparation fee. The falsified charity tax credits totalled more than $9 million.No E and F clients were charged with fraud, but they faced special reassessments and 50% penalties for filing false returns. The fake charities included the Ave Development Foundation, Jesus Healing Centre, Jesus Is the Answer, Liberty Parish, CanAfrica International Foundation, Redeemer’s Victory Church, Pentecostal Assembly Church International and Christ Power Mission.This fraud prompted the CRA to commission in-house research on public awareness of tax evasion schemes. It found 36% of Canadians had heard of illegal methods for evading taxes. “Paying federal taxes is widely accepted as a responsibility shared by all, but the results also clearly indicate most are concerned about paying no more than is absolutely necessary,” it said. “Most agree it is important that everyone pays their fair share of taxes, but also view taking any legal steps to minimize the taxes they owe as legitimate.”This incident comes after the CRA’s criminal probe into an offshore tax avoidance scheme run by accounting firm KPMG cleared it of any wrongdoing in 2022. READ MORE: CRA investigation results into the KPMG tax avoidance scheme were not made public“KPMG fully and voluntarily co-operated with a thorough investigation,” said KPMG spokesperson Tenille Kennedy.The KPMG scheme let wealthy Canadians receive tax-free investment income back from an offshore account in the Isle of Man tax haven as a personal gift to themselves.
One of Canada’s longest running tax investigations has ended in a Brampton, ON, court, according to Blacklock’s Reporter. “The Canada Revenue Agency (CRA) is dedicated to maintaining the integrity of Canada’s tax system,” said CRA managers in a statement.Former E and F Tax Associates partner Festus Bayden has been jailed for three years. The CRA said it “works to make sure that individuals and businesses report all income earned.”Bayden admitted guilt in a charity fraud scheme after 10 years as a fugitive. Former E and F Tax Associates partner Eric Armah pleaded guilty and was jailed in 2011. Investigators found E and F Tax Associates falsified 7,000 tax returns by selling clients fake receipts for donations to non-existent charities at 10 cents on the dollar plus a $50 preparation fee. The falsified charity tax credits totalled more than $9 million.No E and F clients were charged with fraud, but they faced special reassessments and 50% penalties for filing false returns. The fake charities included the Ave Development Foundation, Jesus Healing Centre, Jesus Is the Answer, Liberty Parish, CanAfrica International Foundation, Redeemer’s Victory Church, Pentecostal Assembly Church International and Christ Power Mission.This fraud prompted the CRA to commission in-house research on public awareness of tax evasion schemes. It found 36% of Canadians had heard of illegal methods for evading taxes. “Paying federal taxes is widely accepted as a responsibility shared by all, but the results also clearly indicate most are concerned about paying no more than is absolutely necessary,” it said. “Most agree it is important that everyone pays their fair share of taxes, but also view taking any legal steps to minimize the taxes they owe as legitimate.”This incident comes after the CRA’s criminal probe into an offshore tax avoidance scheme run by accounting firm KPMG cleared it of any wrongdoing in 2022. READ MORE: CRA investigation results into the KPMG tax avoidance scheme were not made public“KPMG fully and voluntarily co-operated with a thorough investigation,” said KPMG spokesperson Tenille Kennedy.The KPMG scheme let wealthy Canadians receive tax-free investment income back from an offshore account in the Isle of Man tax haven as a personal gift to themselves.
