Vancouver, BC

Vancouver businessman receives fine and sentence for tax evasion

Vancouver, British Columbia, April 1, 2016… The Canada Revenue Agency (CRA) announced today that Mike Chu of Vancouver, British Columbia, was sentenced in Vancouver Provincial Court to a court fine of $177,238, and a conditional jail sentence of 14 months after pleading guilty to tax evasion charges. In addition to the court-imposed fine, Mr. Chu will have to repay the full amount of taxes owing plus interest.

A CRA investigation determined that Mr. Chu underreported income earned while providing house design and architectural services through his sole proprietorship. The discovery was made by CRA auditors reviewing building permits granted by the City of Vancouver, which named Mr. Chu as the applicant. In total, Mr. Chu underreported $629,227 of income on his 2010 to 2013 income tax returns, evading $155, 994 in federal income tax and failing to remit $80,322 in GST.