The Canada Revenue Agency (CRA) announced today that on June 6, 2016, Lawrence Watts of Markham, Ontario was sentenced in the Ontario Superior Court of Justice in Newmarket to six years in jail and a court-imposed fine of $149,129. On October 22, 2015, Watts was found guilty by jury, in the same court, of one count of fraud over $5,000 under the Criminal Code.
$10 million federal tax refunds
A 28-month CRA investigation revealed that Watts, owner and operator of Fiscal Arbitrators, claimed false business losses on income tax returns he prepared on behalf of 241 of his clients. These fictitious losses enabled these clients to receive or attempt to receive approximately $10 million in federal tax refunds. Through Fiscal Arbitrators, Watts promoted the incorrect notion that Canadians do not have to pay tax on income they earn, and counseled clients on how to restructure their affairs to evade payment of income tax.
Read the full article at Market Wired.