CRA convicts for failure to remit employee payroll tax
George Michael Yemec of Toronto has been penalized for failing to remit employee payroll taxes. He was found guilty on seven charges of failing to remit source deductions in the Ontario Court of Justice in Toronto and given 180 days to pay the fine.
Yemec, a Toronto intermediary in the Canadian lottery business, did not remit amounts that were deducted and withheld from his employees’ salaries and wages in 2000 and 2002 to the Canada Revenue Agency (CRA).
As sole director of three corporations (624654 Ontario Limited, sometime carrying on business as First Telegroup Marketing, First Telemedia Group, Express Marketing Services, and Express Sales; World Media Brokers Inc.; and Dial-A-Million Inc.), and sole proprietor of Canadian Games and World Media Brokers, Yemec's primary activities included promoting, advertising and telemarketing the sales of lottery tickets and memberships to lottery clubs.
When employee payroll deductions are collected, they must be held in trust until remitted to the Canada Revenue Agency. Under the Income Tax Act, all businesses are required to withhold and remit payroll amounts, which include income tax, Canada Pension Plan (CPP) contributions, and employment insurance (EI) premiums deducted from employee wages. On summary conviction, a person or corporation is subject to a fine of between $1,000 to $25,000, and imprisonment for up to 12 months for each count. The fine is in addition to the taxes and interest owed, as well as any civil penalties that may be assessed by the CRA.
Yemec, a Toronto intermediary in the Canadian lottery business, did not remit amounts that were deducted and withheld from his employees’ salaries and wages in 2000 and 2002 to the Canada Revenue Agency (CRA).
As sole director of three corporations (624654 Ontario Limited, sometime carrying on business as First Telegroup Marketing, First Telemedia Group, Express Marketing Services, and Express Sales; World Media Brokers Inc.; and Dial-A-Million Inc.), and sole proprietor of Canadian Games and World Media Brokers, Yemec's primary activities included promoting, advertising and telemarketing the sales of lottery tickets and memberships to lottery clubs.
When employee payroll deductions are collected, they must be held in trust until remitted to the Canada Revenue Agency. Under the Income Tax Act, all businesses are required to withhold and remit payroll amounts, which include income tax, Canada Pension Plan (CPP) contributions, and employment insurance (EI) premiums deducted from employee wages. On summary conviction, a person or corporation is subject to a fine of between $1,000 to $25,000, and imprisonment for up to 12 months for each count. The fine is in addition to the taxes and interest owed, as well as any civil penalties that may be assessed by the CRA.
