Niagara, ON

Niagara resident fined $168,235 and sent to jail for tax evasion

St. Catharines, Ontario, July 27, 2016… The Canada Revenue Agency (CRA) announced today that on July 25, 2016, William Mori of Niagara-on-the-Lake, Ontario, was sentenced, in the Ontario Superior Court of Justice in St. Catharines, to four months in jail for each count of tax evasion, to be served consecutively, and a fine of $168,235.  On April 29, 2016, Mori was found guilty of three counts of income tax evasion. The court imposed fine represents 75% of the taxes evaded.  In addition to the fine, Mori will have to pay the full amount of tax owing, plus related interest and any penalties assessed by the CRA.

A CRA investigation revealed that, from 2007 to 2009, Mori deliberately failed to report income totalling $864,200 on his personal tax returns. Mori received the income from managing his company, 411279 Ontario Ltd, in Niagara-on-the Lake.

Mori relied on a scheme promoted by the Paradigm Education Group that promotes the concept of a “natural person”. For a fee of 7% of Mori’s unreported income, a Paradigm “educator” coached Mori on how to employ Paradigm’s false belief that as a “natural person” he could receive income that was exempt from income tax. In so doing, Mori evaded federal income taxes of $224,313.