Accounting student fined $34,114 for tax evasion

Calgary, Alberta, November 24, 2009 ... The Canada Revenue Agency (CRA) announced today that Konnie Khou, age 41, of Calgary, Alberta pleaded guilty in Calgary Provincial Court to income tax evasion and was fined $34,114.

This fine represents 85% of the tax sought to be evaded.

The CRA investigation revealed that Mrs. Khou, who worked as an independent contractor providing accounting services, failed to report any of the income she received from her accounting services from 2002 to 2005. As a result, she evaded $30,788 of income tax and received $9,346 of unwarranted Child Tax Benefits.

The court heard that Mrs. Khou had a two year Business Administration Diploma, an Advanced Accounting Certificate and had completed the fourth level towards a professional accounting designation.

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 full disclosure before the Agency starts any action or investigation against them. These individuals may only have to pay the taxes owing, plus interest.