A Burnaby-based roofing company and the West Vancouver man who operated the company in the Lower Mainland have been fined $248,850 for income tax, and goods and services tax evasion.
Broadway Roofing Co. Ltd. and Daniel Scholten of West Vancouver pleaded guilty in provincial court on Jan. 12, according to a press release issued by the Canada Revenue Agency.
According to an Internet search, Broadway Roofing Co. Ltd. is located at suite 400 - 7430 Lowland Dr. in South Burnaby and has a web address of www.broadwayroof.com. On that website, the company advertises that "since 1967, Broadway Roofing has been an industry standard when it comes to roofing in the Lower Mainland."
Scholten was also given a conditional sentence order of two years less a day, including house arrest for the first year. The fines represent 75 per cent of the total federal income tax and GST evaded. Both Scholten and Broadway Roofing have one year to pay their fines.
The fines come after an extensive revenue agency investigation revealed that Scholten used the company from 2005 to 2007 to build himself a new house in West Vancouver. According to court records, Broadway Roofing claimed expenses of $842,490 related to the construction of the house and failed to remit GST in the amount of $94,869. Scholten did not report the house construction costs, paid by Broadway Roofing, as a benefit on his personal income tax returns, and as a result, evaded federal tax payable in the amount of $236,941.
According to the Canada Revenue Agency, people who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs.
They will not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the agency against them. These people may only have to pay the taxes owing, plus interest. More information on the voluntary disclosures program can be found at
www.cra.gc.ca/voluntarydisclosures.
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