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What the CRA Said

Trois-Rivières Resident Sentenced for Massive Tax Fraud Involving Fictitious Children

In a startling revelation of tax fraud, the Canada Revenue Agency (CRA) has announced the sentencing of Wayne Kendall Jr. from Trois-Rivières, Quebec. On October 20, 2023, at the Trois-Rivières Courthouse, Kendall Jr. received an 18-month prison sentence followed by a two-year probation. He had pleaded guilty to making false or deceptive statements and forgery on March 10, 2023.

A thorough investigation by the CRA unearthed a fraudulent scheme that spanned from 2015 to 2018. Kendall Jr. was found to have wrongfully obtained over $377,000 by submitting false claims for tax credits and benefits. He adopted 18 different identities to claim tax credits and benefits for 61 fictitious children, subsequently funneling the money into various bank accounts opened under these fake identities.

Interestingly, Kendall Jr. had utilized his position at the CRA to access the data of the impersonated identities. However, he was no longer employed at the agency when he executed his fraudulent activities.

These findings underscore a critical aspect of tax evasion as a crime. Falsifying records and claims, intentionally not reporting income, or exaggerating expenses can lead to serious consequences, including criminal charges, prosecution, hefty fines, jail time, and a criminal record. In the fiscal year from April 1, 2022, to March 31, 2023, there were 31 convictions related to tax evasion in Canada, resulting in court-imposed fines totaling $6,925,440 and jail sentences amounting to 32.7 years.

Convicted taxpayers, apart from facing fines and jail sentences, are also required to pay the full amount of the owed tax, along with interest and any penalties assessed by the CRA.

The CRA remains committed to upholding the integrity of Canada’s tax system. This commitment is not only essential for the country’s economic health but also for ensuring the social well-being of its citizens. The agency continues its aggressive pursuit of tax evasion and false claims using all available tools. It works diligently to ensure that individuals and businesses accurately report income and claim only those benefits to which they are legitimately entitled. This diligence is crucial for the fair administration of benefit programs to those in actual need. The CRA’s message is clear: any individual or business that underreports income or falsely claims losses or benefits faces the risk of repayment demands and potentially more severe actions.

CRA Boosts Support for Free Tax Clinics

The Canada Revenue Agency (CRA) has achieved a significant milestone with its free tax clinics, helping over 649,000 Canadians with modest incomes file their taxes, resulting in more than $1.75 billion in benefits, credits, and refunds. This success was made possible through the collaboration of over 3,400 community organizations and the dedication of 14,700 volunteers. In recognition of this achievement, the CRA has allocated $5.2 million in grants for 2023 to organizations involved in the Community Volunteer Income Tax Program (CVITP) and the Income Tax Assistance – Volunteer Program (ITAVP) in Quebec. This funding is part of a three-year pilot project aimed at assisting these organizations with the costs of hosting free tax clinics.

Due to the positive impact of these clinics, the Minister of National Revenue announced the extension of the grant pilot project for a fourth year, increasing the funding to $5.9 million. These free tax clinics are crucial for helping individuals with simple tax situations access important benefits and credits, often essential for their basic needs. The clinics are operated by various non-profits, charities, or community groups, in collaboration with the CRA, and are particularly focused on serving Indigenous communities and those in northern, rural, or remote areas.

The CRA is seeking more community partners to host free tax clinics and offers free training and laptops to interested organizations. The new funding for the project will become available in spring 2024, with applications accepted annually between May 1 and June 30. The CRA’s collaboration with Revenu Québec provides additional grants for Quebec organizations, ensuring comprehensive support for free tax clinic operations across the country.

CRA Federal Job Fair

The Canada Revenue Agency (CRA) is hosting a federal job fair on November 18 at the Jonquière Tax Center, in collaboration with several federal employers. This event presents a unique opportunity for job seekers to meet with representatives from various organizations, including the Canada Border Services Agency, Shared Services Canada, the Normandin Research Farm of Agriculture and Agri-Food Canada, the Régiment du Saguenay, and the CRA itself. Scheduled from 9 a.m. to 4 p.m., the fair will be held at 2251 René-Lévesque Blvd., Jonquière, Quebec. Attendees are encouraged to bring both electronic and paper copies of their resumes to explore a range of available positions in fields such as customer service, data entry, science, and information technology.

The CRA is actively recruiting for several bilingual and unilingual customer service positions at its Jonquière and Chicoutimi offices, with temporary roles available for the upcoming tax season. Job seekers can also apply online by searching for specific requisition numbers on the CRA careers page. Other participating organizations, such as the Canada Border Services Agency, Shared Services Canada, and the Normandin Research Farm, will be showcasing various job opportunities, including roles in IT, cybersecurity, cloud computing, and research farming. The Régiment du Saguenay will also present opportunities in both infantry and administration, with online applications available on their page. This job fair represents a significant chance for individuals to engage directly with potential employers and learn about a wide array of federal employment opportunities.

This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. ©2023 Shajani CPA.

Shajani CPA is a CPA Calgary, Edmonton and Red Deer firm and provides Accountant, Bookkeeping, Tax Advice and Tax Planning services.

Nizam Shajani, Partner, LLM, CPA, CA, TEP, MBA

I enjoy formulating plans that help my clients meet their objectives. It's this sense of pride in service that facilitates client success which forms the culture of Shajani CPA.

Shajani Professional Accountants has offices in Calgary, Edmonton and Red Deer, Alberta. We’re here to support you in all of your personal and business tax and other accounting needs.