Tax evasion nets lobbyist fine and house arrest

Ottawa, Ontario, November 18, 2015... The Canada Revenue Agency (CRA) announced that on September 30, 2015, Herbert (Herb) Metcalfe of Ottawa, Ontario was sentenced in the Ontario Court of Justice in Ottawa to a conditional sentence of two years less a day, including 12 months house arrest, and was fined $396,259. Metcalfe pleaded guilty to one count of income tax evasion. The fine represents 100% of the total taxes evaded.

A CRA investigation found that Metcalfe, as a director and employee of The Capital Hill Group Ottawa Inc., a political lobbying business, received payments and benefits from 2002 to 2006 totaling $1,366,411 that he did not report on his personal income tax returns, thereby evading $396,259 in federal income taxes. Metcalfe prepared his returns each year by hand, and knew, or was willfully blind to the fact, that the income he received was required to be reported on his returns, and that tax was payable on this income.

The preceding information was obtained from the court records.

“The Canada Revenue Agency pursues tax evaders to maintain public confidence in the integrity of the tax system,” said Vince Pranjivan, Assistant Commissioner of the Ontario Region. “Canadians have to trust that our self-assessment system is working and that it is fair.”

When individuals 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 be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

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For media information

Paul Murphy
Communications Manager
416-952-8105

Date modified:

2015-11-19