Calgary-area tax cheat sentenced and fined $50K

A sign outside the Canada Revenue Agency is seen Monday May 10, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld

A Calgary-area man has been handed a 12-month conditional sentence and a $50,000 fine for making false claims on his tax returns.

The Canada Revenue Agency says Sean Nethercott of De Winton, Alta., pleaded guilty to making false claims on his T1 tax returns to avoid paying tax and acquire refunds and tax credits he wasn't entitled to.

Nethercott's actions were discovered following a Canada Revenue Agency (CRA) investigation into his 2014, 2015 and 2016 tax returns.

The agency says he "understated" his income and claimed false losses, expenses and deductions to reduce his net income for those years.

"Nethercott also made false claims for refunds, thereby attempting to evade $51,952 in tax and to obtain $28,637 in tax credits to which he was not entitled," the CRA said in a news release.

In addition to the above-stated fine, Nethercott will be required to pay the full amount of tax owing plus all related interest and penalties assessed by the CRA.

"The CRA is dedicated to maintaining the integrity of Canada's tax system, thereby contributing to the social and economic well-being of Canadians. The CRA continues to aggressively pursue tax evasion, and false claims with all the tools available to it.

"The CRA works to make sure that individuals and businesses report all income earned and only claim benefits to which they are entitled, so that important benefit programs can be administered to those who need them. Any individual or business who underreports income, or claims losses or benefits to which they are not entitled may have to repay the benefit amounts and may be subject to other possible action."

Instructions on how to report tax evasion are available on the Government of Canada's website.