Okanagan tax preparer receives fine and 22 month conditional sentence for tax fraud

Kelowna, British Columbia, November 12, 2015...The Canada Revenue Agency (CRA) announced today that Deanna Lynn LaValley was sentenced on November 10, 2015, in British Columbia Supreme Court in Kelowna. LaValley was convicted on July 8, 2015, of two counts of false statements under the Income Tax Act and one count of fraud under the Criminal Code, relating to the preparation of fraudulent income tax returns for herself and for clients of DeMara Consulting Inc. She was fined $17,439, representing 100% of the total federal income tax owing. In addition, she was ordered to serve a conditional sentence of 22 months house arrest.

A CRA investigation determined that LaValley and partner Donna Marie Stancer, while operating DeMara Consulting Inc., claimed false capital and business losses totaling over $192 million on the returns of 224 clients, resulting in attempted refunds of $9,907,964. Of this amount, only $52,832 was paid out. In addition, LaValley claimed refunds of $17,439, related to false losses totaling $450,764 on her 2007 to 2010 personal income tax returns.

Stancer was also convicted of two counts under the Income Tax Act and two counts under the Criminal Code on July 8, 2015, and will be sentenced at a later date.

The preceding information was obtained from the court records.

Taxpayers who claim false expenses, credits or rebates from the government are subject to serious consequences. They are liable not only for corrections to their tax returns and payment of the full amount of tax owing, but also to penalties and interest. In addition, if convicted of tax evasion, the court may fine them up to 200% of the tax evaded and sentence them for up to a five-year jail term.

If you have ever made a tax mistake or omission, the CRA is offering you a second chance to make things right through its Voluntary Disclosures Program (VDP). If you make a valid disclosure before you become aware that the CRA is taking action against you, you may only have to pay the taxes owing plus interest. More information on the VDP can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

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Date modified:

2015-11-13