The Canada Revenue Agency (CRA) announced that, on June 4, Mr. Clayton Kubbernus of Bonnyville, Alberta, was sentenced to seven months in jail, and fined a total of $269,726 for tax evasion.
According to a CRA news release, “On November 27, 2020, Kubbernus pleaded guilty in the Alberta Court of Queen’s Bench, to one count of tax evasion relating to a personal tax return, one count of tax evasion as the sole director of 1083627 Alberta Ltd., and one count of tax evasion regarding Goods and Services Tax/Harmonized Sales Tax (GST/HST) filings for the same corporation. The fine represents 100 per cent of the taxes he evaded.”
A CRA investigation revealed that Mr. Kubbernus moved money from his corporation to his personal bank account, and did not report the income on either the corporation’s tax returns, which he failed to file, or his personal tax returns, resulting in tax evasion.
Kubbernus, as sole owner of 1083627 Alberta Ltd., charged GST/HST on services provided but failed to file GST/HST returns for the corporation or remit any of the GST/HST collected.
All case-specific information above was obtained from the court records.