Vancouver businessman receives fine and conditional sentence for tax evasion

Vancouver, British Columbia, April 1, 2016… The Canada Revenue Agency (CRA) announced today that Mike Chu of Vancouver, British Columbia, was sentenced in Vancouver Provincial Court to a court fine of $177,238, and a conditional jail sentence of 14 months after pleading guilty to tax evasion charges. In addition to the court-imposed fine, Mr. Chu will have to repay the full amount of taxes owing plus interest.

A CRA investigation determined that Mr. Chu underreported income earned while providing house design and architectural services through his sole proprietorship. The discovery was made by CRA auditors reviewing building permits granted by the City of Vancouver, which named Mr. Chu as the applicant. In total, Mr. Chu underreported $629,227 of income on his 2010 to 2013 income tax returns, evading $155, 994 in federal income tax and failing to remit $80,322 in GST.

The preceding information was obtained from the court records.

When taxpayers are convicted of income tax 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 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.

-30-

For media information

Heidi Hofstad
Communications Manager
604-666- 9389

Date modified:

2016-04-04