Gary Andrew Callaghan pleaded guilty in Kelowna Provincial Court on Feb. 18 to three counts of failing to comply with court orders to file his 2007 to 2009 personal income tax returns and the 2006 to 2009 corporate income tax returns for both Antrim Homes Ltd. and Taynton Developments Inc.
Callaghan was fined $3,000, payable by Dec. 31, 2015, and given a 21-day intermittent jail sentence. He was also ordered to file all outstanding personal and corporate income tax returns by July 17, 2015.
When taxpayers are convicted of failing to file tax returns, in addition to any fines imposed by the courts, they must still file the returns and pay the full amount of taxes owing, plus interest owed, as well as any civil penalties that may be assessed by the Canada Revenue Agency.
If a tax mistake or omission occurs, the CRA offers the faulty taxpayer a second chance to make things right through its Voluntary Disclosures Program . 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.