A Port Carling Investment Advisor has been sentenced to 3 years imprisonment after a successful Canada Revenue Agency (CRA) appeal of a conditional sentence in a fraud case.
The CRA reports that a conditional sentence was imposed on September 26th, 2019 after Joern (also known as John) Scholz was found guilty by a jury on April 13th of that year in Hamilton of one count of fraud over $5,000 under the Criminal Code.
The CRA reports it was for the evasion of federal income tax and goods and services tax/harmonized sales tax (GST/HST).
This month the Court of Appeal for Ontario found that a prison sentence was merited in the case because Scholz’s tax evasion constituted a large-scale fraud on the taxpayers of Canada. Scholz was sentenced on July 13th, 2021.
The background – A CRA investigation revealed that Scholz operated an investment counselling business, and did not report any of the commission fees received from his clients on his individual tax returns for the taxation years 2011 to 2013 inclusive.
By failing to report taxable income totalling $2,149,730 for these years, the CRA says Scholz evaded a total of $605,355 in federal income tax.
The CRA also reports that Scholz also did not file GST/HST returns for the periods ending in 2011 to 2015 inclusive, thereby evading the remittance of GST/HST totalling $445,789. The CRA reports that all case-specific information above was obtained from the court records
Port Carling investment advisor guilty of tax fraud imprisoned following appeal of conditional sentence: https://t.co/OmDtdyV7di #TaxEvasion #CdnTax pic.twitter.com/ycnM4axtwv
— Canada Revenue Agency (@CanRevAgency) July 21, 2021
