Coldbrook woman charged with 11 counts of tax evasion and forgery

Halifax, Nova Scotia, July 14, 2016... The Canada Revenue Agency (CRA) reported that 11 charges of tax evasion were filed yesterday under the Income Tax Act and six charges were filed under the Criminal Code against Ms. Karen Lorraine Byers of Coldbrook, Nova Scotia.

Under the Income Tax Act, Ms. Byers is charged with tax evasion and making false statements on her personal income tax return as well as her spouse’s by overstating charitable donations on their respective returns equaling $202,500. Under the Criminal Code, Ms. Byers is charged with forgery and using forged documents for the creation and submission of false documents, specifically charitable donation receipts.

In 2011 the Canadian Forces National Investigative Service (Canadian Forces) began its investigation into Ms. Byers for the expropriation of funds from the Greenwood Military Family Resource Centre, her former employer. This investigation led to criminal charges and a conviction of fraud. As part of its investigation, the Canadian Forces shared the information with the CRA. The CRA investigation concluded that between the taxation years 2008 and 2013 the sizable tax refunds claimed by the Byers’ were as a result of large, allegedly falsified, charitable donations.

The information in this release is publicly available from 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 up to five years in jail.

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 http://www.cra.gc.ca/voluntarydisclosures.

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For Broadcast Use:

The Canada Revenue Agency (CRA) reported that 11 charges of tax evasion were filed yesterday under the Income Tax Act and six charges were filed under the Criminal Code against Ms. Karen Lorraine Byers of Coldbrook, Nova Scotia.

The charges are in relation to what the CRA alleges was the falsification of charitable donations on personal income tax returns and for the creation and submission of false documents. Specifically, the CRA alleges charitable donation receipts were falsified when requested by the CRA to support claims made on her and her spouse’s income tax returns. The CRA alleges that the total amount of fraudulent donations claimed equals $202,500. The Canadian Forces National Investigative Service (Canadian Forces) investigated Ms. Byers for the expropriation of funds from the Greenwood Military Family Resource Centre, her former employer. This investigation led to criminal charges and a conviction of fraud. As part of its investigation, the Canadian Forces shared information with the CRA, which aided the Agency in its own investigation.

For media information:

Lyndin Kane
Communications, Atlantic Region
902-426-1679

Date modified:

2016-07-15