Brampton, Ont., tax preparer gets jail for claiming $34 million in fake charitable donations: CRA
A Brampton, Ont., man has been sentenced to three years in jail after pleading guilty to falsely claiming $34 million worth of charitable donations on tax returns he prepared for clients.
Canadian tax authorities announced the sentence in a news release Friday along with details from the court proceedings.
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The Canada Revenue Agency (CRA) said Festus Bayden was a partner in a tax preparation business known as E & F Tax Associates. The business also went by Bankay Financial Services, Inc. in Toronto and Brampton.
A CRA investigation found that Bayden claimed more than $34 million in false charitable donations on individual income tax returns that he prepared for more than 30 clients for the 2004 to 2006 tax years.
"Bayden told his clients that a larger refund or reduced taxes could be obtained if they made a charitable donation for an amount that was far less than what was actually claimed on their income tax returns," the CRA said. "Bayden then provided his clients with false charitable donation receipts in the names of various charitable organizations to which he was connected."
He charged his clients roughly 10 per cent of the face value of the false charitable donations that were claimed.
Bayden fled Canada after he was charged, but was taken into custody when he returned to the country on June 13, 2023.
On February 27, 2024, the Ontario Court of Justice in Brampton sentenced him to three years in jail after he pled guilty to one count of fraud over $5,000.
In its release, the CRA said it is committed to going after tax promoters – individuals or corporations who promote or sell schemes that seek to break or bend the rules of Canadian tax laws. The agency said it holds both promoters and their clients responsible.
"The CRA continues to aggressively pursue tax evasion and false claims with all the tools available to it," the agency said. "The CRA works to make sure that individuals and businesses report all income earned and only claim benefits to which they are entitled, so that important benefit programs can be administered to those who need them."
The release warned that any individuals or businesses who underreport income or claim losses or benefits to which they are not entitled, might have to repay the benefit amounts and could be subject to "other possible action."
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