CRA investigation finds evasion of GST, income tax
John Jordan of Ottawa pleaded guilty in an Ontario court of justice to two counts of tax evasion. He was fined $80,000 for evading federal income tax and $20,000 for evading GST, in addition to any taxes and interest owed, as well as any civil penalties that may be assessed by the Canada Revenue Agency (CRA).
A CRA investigation determined that from 1999 to 2004, Jordan and his company Jordan Management Consultants evaded $38,038 of GST and $156,584 of income tax on unreported income of $605,162. Jordan was the executive director and chief executive officer of the Canadian Amateur Football Association (Football Canada). He was also responsible for marketing and fundraising for Football Canada. Under the name of Jordan Management, he operates a car and boat storage business during the winter months.
The CRA discovered Jordan did not report the annual bonuses he received or commission he was paid on all of the fundraising activities he carried out for Football Canada, such as organizing golf tournaments and soliciting donations.
In addition, he diverted some of his income by having Football Canada issue two cheques semi-monthly, of which he only reported the one deposited to his business bank account. Similarly, Jordan failed to report all of the income and GST he received from his storage business.
The investigation further determined Jordan deducted expenses from his Football Canada income and claimed input tax credits, even though they were paid directly by the organization. And he did not report $95,000 of interest he earned on personal loans from 2000 to 2002.
