Brampton transportation services company owner sentenced for tax fraud

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Net Patrol International Inc.  Data Investigation and Forensic Services
Bankruptcy and Insolvency Trustees

July 20, 2021 – On July 19, the CRA announced Dasonda Singh Khakh was sentenced in the Ontario Court of Justice in Brampton to a conditional sentence of two years less one day and to a fine of $108,562. In June 2019, Khakh pleaded guilty to the making of false or deceptive statements in three counts of goods and services tax/harmonized sales tax (GST/HST) fraud under the Excise Tax Act.

Khakh was the director and sole shareholder of 947321 Ontario Inc., operating as HJT Logistics, a U.S. transportation services company. Khakh filed three GST/HST returns, claiming refunds related to the fictitious purchase of seven commercial trucks. Khakh submitted falsified vehicle purchase agreements, copies of bank drafts and cheques to support his claim. By filing his fraudulent returns, Khakh claimed a total of $108,526 in input tax credits to which he was not entitled. 

All case-specific information above was obtained from court records.

Tax evasion is a crime and falsification of records and claims, wilfully not reporting income, or inflating expenses can lead to criminal charges, prosecution, jail time, and a criminal record. As with any criminal investigation done by law enforcement, the CRA’s criminal investigations of tax evasion are complex and often require years to complete. Learn more about the criminal investigations process.

The CRA said it remains dedicated to maintaining the integrity of Canada’s tax system, as well as the social and economic well-being of Canadians during these unprecedented times. The CRA continues to aggressively pursue tax evasion and false claims with all the tools available to them and is continuously working towards making sure that individuals and businesses claim income earned, eligible losses, and benefits to which they are entitled, so that important benefit programs can be administered to those who need them.

As a result of COVID-19, there is increased importance of these benefits and are working to make sure that they continue to be available to Canadians. Any individual or business who underreports income, or claims losses or benefits to which they are not entitled, including ineligible claims for COVID-19 benefits, may have to repay the benefit amounts and may be subject to other possible action.

The CRA has also set up a free subscription service to help Canadians stay current on the CRA’s enforcement efforts.