Canada Revenue Agency: Richmond Hill Businessman Pleads Guilty to GST Fraud and Personating Other Individuals

Mr. Rupp, a former real estate agent and the president of Dynasty Homes Ltd., was sentenced to a conditional sentence of two years less a day for unlawfully making false or deceptive statements, and willfully obtaining GST funds to which he was not entitled. He was charged under the Criminal Code of Canada for fraudulently personating living persons with intent to gain advantage for himself. Under the conditional sentence, Mr. Rupp must remain at home during certain hours for one year, and must maintain good behaviour and must repay the amount fraudulently obtained by August 31, 2008. He must request from the Canada Revenue Agency (CRA) permission to register new GST accounts, and he must inform the CRA of any new companies that he acquires.

A CRA investigation revealed that Mr. Rupp registered 70 GST accounts from 1991 to 2001. During the period from 1996 to 2001, he used some of these accounts to file 652 false GST returns and receive fraudulent GST refunds totaling $217,557. Mr. Rupp used names and social insurance numbers of other individuals to register some of these accounts.

"Canadians have to be confident that the tax system is fair," said William V. Baker, Commissioner of the CRA. "That's why the Agency works to ensure that the vast majority of Canadians who pay their taxes are not penalized by the few who don't."

Taxpayers who claim false expenses, credits or rebates from the government are subject to serious consequences. They are liable not only for corrections to their tax returns and payment of the full amount of tax owing, but also to penalties and interest. In addition, if convicted of tax evasion, the court may fine them up to 200% of the tax evaded and sentence them for up to a five-year jail term.

The CRA is committed to ensuring public confidence in the integrity and fairness of the tax system through education and responsible enforcement. People who commit tax fraud are cheating the vast majority who obey tax laws.

The information in this news release was obtained from the court records. Further information on convictions can also be found in the Media room on the CRA website at www.cra.gc.ca

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