Surrey real estate developer fined $462,000 for tax evasion
A Surrey real estate developer has been sentenced for tax evasion in connection with a case that dates back to 2010, the Canada Revenue Agency (CRA) announced this week.
Developer Rajinder Singh Mann was sentenced to a conditional sentence order of two years less a day, which includes nine months house arrest and 150 hours of community service.
He was also given two years to pay the total fine of $462,092, representing 100% of the goods and services tax/harmonized sales tax (GST/HST) that he evaded.
The sentencing comes after an investigation by the CRA found Mann “contravened the Excise Tax Act by failing to report and remit” the GST/HST collected from the sale of 44 units in a Maple Ridge townhouse complex, built by Millenium Century Investments Ltd. (Millenium) – of which Mann is the sole director and shareholder.
All 44 of those units were sold between May 2010 and October 2011.
In January of this year, Mann pleaded guilty in BC Provincial Court to seven counts of GST/HST fraud under the Excise Tax Act.
When taxpayers are convicted of GST 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 convicted of fraud under Section 380 of the Criminal Code, an individual can face up to 14 years in jail.
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