The Canada Revenue Agency (CRA) announced Friday that Wilfred Roy Smith, 63, of Moose Jaw, was sentenced to eleven months in jail and fined $79,890 for tax evasion. Smith was found guilty following a trial that took place from May 14 to 18 in Moose Jaw Provincial Court. Following his release, he will have six months to pay the fine which represents 100 per cent of the taxes evaded.
Smith operates WR Smith Trucking and subleases trucks to other drivers. He under-reported his income for the 2006 and 2007 tax years by $462,091. After the CRA audited the company’s 2004 and 2005 tax returns, which resulted in higher tax assessments, the court found that Smith created false business losses totaling $185,515 on his 2006 and 2007 tax returns. He then used these losses to reduce the previously audited 2004 and 2005 income. He also carried forward losses to his 2008 tax return.
The court heard Smith tried to hide his assets from the CRA by transferring shares, term deposits, a beach property, a vehicle, and two motorcycles to a family member.