Former Chartered Accountant Pleads Guilty to GST Fraud - Marketwire (press release)

NEWMARKET, ONTARIO--(Marketwire - June 22, 2011) - The Canada Revenue Agency (CRA) announced today that Thomas Silverman of Vaughan pleaded guilty in the Ontario Court of Justice in Newmarket to one count of fraud over $5,000. Silverman, a former Chartered Accountant, committed GST fraud by registering three businesses and filing false GST returns on behalf of the companies, claiming a total of $4.5 million in fraudulent GST refunds. Silverman will be sentenced on September 12, 2011.

A CRA investigation revealed that Silverman registered three businesses for the purposes of claiming fraudulent Input Tax Credits and obtaining GST refunds. None of the businesses set up by Silverman were engaged in legitimate commercial or business activities. Silverman used the personal information of former clients to set up nominee directors for each company, as well as a commercial mailbox to suggest the legitimacy of the businesses. Silverman maintained exclusive control of all of the companies' bank accounts.

Silverman companies filed 116 GST returns between August 2000 and November 2003, claiming $4,538,024 in refunds to which his companies were not entitled. In total, Silverman received $3,800,000 in fraudulent refunds paid out to Silverman Companies and transferred to a personal bank account. The CRA determined that all of the claims were unwarranted and false.

The preceding information was obtained from the court records.

Individuals who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They will not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the Canada Revenue Agency (CRA) against them. These individuals may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

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