Immigrant Investor Fined For Tax Evasion

On July 15, 2010, the Tax Court of Canada declared that S Korki, an Immigrant Investor from Iran, would have to pay gross negligence penalties for failure to fully disclose income.

In the 2002 and 2003 taxation years, Mr. Korki declared a net income of $19,100 and $22,312 respectively. After carrying out a Net Worth Analysis during an audit, the CRA reassessed this amount to $287,340 and $177,380.

Over the court of the whole affair, the Canada Revenue Agency pounced on inconsistencies in testimony, statements from officers and friends, obtained evidence of wire transfers, discovered undeclared offshore accounts, and real property sales.

They found that the applicant had not met the burden of showing that the reassessment was wrong. They further found that gross negligence penalties were appropriate. These penalties add 50% to the amount of tax owing.

The case stresses how important it is for immigrant investors to obtain proper tax advice prior to immigrating.

One thought on “Immigrant Investor Fined For Tax Evasion

  1. I agree that pretty much anyone coming to Canada on an immigrant investor visa should consult a tax lawyer, there are many intricacies to the law and that particular situation that require an expert’s attention.

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