TAX NEWS - June 2010

BC Tax Evasion: Restaurant owner convicted of tax evasion

The owner of the former Garlic Rose Café in downtown Victoria has been handed a $479,730 fine and a conditional 24 month sentence for income tax and GST evasion.

At Western Communities Courthouse on June 10, Moses Hanna was found guilty of two counts of tax evasion and one count of failure to make GST payments.

In submissions to the court, the Canadian Revenue Agency alleged that $829,134 in restaurant sales between 1998 and 2000 was not recorded but was funneled into personal bank accounts.

The money was later removed tax free, the CRA alleged. Hanna also failed to pay $67,853 in GST during the same period, the CRA said.

Court documents show the restaurant and Hanna were originally charged with 21 counts related to failing to pay taxes and making false statements on tax returns. A conviction on the same charges was set aside in 2005.

Hanna, who owns Garlic Rose Patio and Grill in Langford, said he plans to appeal the conviction.