Toronto Tax Preparer Jailed for Providing False Charitable Donation
Ambrose Danso Dapaah, formerly of Mississauga, Canada has been jailed for defrauding the government of Canada.

He pleaded guilty on December 15, 2008 to one count of fraud over $5,000. He was sentenced to 51 months in jail in the Ontario Court of Justice in Toronto.

Dapaah ran away to Ghana in 2007 after his office was raided. He sneaked back into Canada, in September of this year, with the aim of outwitting the system but run out of luck.

A Canada Revenue Agency (CRA) investigation revealed that Dapaah, owner and operator of ADD Accounting Services, as well as president of CanAfrica International Foundation (CIF), prepared and filed false personal income tax returns on behalf of his clients. His clients claimed fictitious or overstated charitable donation receipts from CIF and other charities on their income tax returns. During the 2002 to 2005 tax years, Dapaah falsified over $21M in charitable donations, and in doing so, helped his clients claim over $6M in non-refundable tax credits.

On September 8, 2007, CRA revoked the charitable registration of CIF for its role in selling official donation receipts.

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. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures

The Agency seeks publicity on convictions to maintain public confidence in the integrity of the self-assessment system and to increase compliance with the law through the deterrent effect of media coverage.

When individuals or corporations are convicted of tax evasion, they have to pay the full amount of tax owing, plus interest, and any penalties the CRA assesses. In cases of gross negligence, the Income Tax Act and Excise Tax Act allow the CRA to assess a penalty of up to 50% of the unpaid tax or the improperly claimed benefit. In addition, the court may, on summary conviction, fine them 50% to 200% of the tax evaded, and sentence them to a jail term of up to two years.

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-arc.gc.ca/convictions/