Granite Installer Sentenced to House Arrest and Fine for Tax Evasion

THUNDER BAY, ONTARIO--(Marketwire - Feb. 3, 2012) - The Canada Revenue Agency (CRA) announced today that on February 1, 2012, John Naccarato, of Thunder Bay, pleaded guilty to one count of tax evasion in the Ontario Court of Justice in Thunder Bay. He was sentenced to 30 days house arrest and a fine of $51,000 which represents 85% the taxes evaded.

John Naccarato, the sole shareholder and President of Duracon Tile & Concrete Ltd also operating as Granite Tops Inc., failed to report income totaling $237,323 on his 2001 to 2004 personal income tax returns and in doing so evaded $59,517 in federal taxes.

A CRA investigation revealed that from 2001 to 2004, Naccarato appropriated money for work done by Duracon for his personal use. The appropriation of funds was done through a number of schemes. In some instances, Duracon would not invoice clients for work performed and instead directed clients to make payment, by cheque or in cash, to Naccarato himself or to his wife. Naccarato also claimed to have personally made a shareholder contribution to the corporation of $90,332 worth of granite and concrete tools and withdrew this contribution from Duracon tax-free. The CRA investigation confirmed that the assets (granite and concrete tools) never existed and that the funds withdrawn from the corporate bank account were for Naccarato's personal use.

In addition to the house arrest and the fine imposed, Naccarato is facing a civil tax liability, which includes provincial taxes, gross negligence penalties, and interest, totalling $241,536.

"The vast majority of Canadians pay their taxes in full and on time. The Canada Revenue Agency has strong and effective programs to identify those who try to avoid paying the tax they owe," says Vince Pranjivan, Deputy Assistant Commissioner for Ontario Region for the Canada Revenue Agency.

The preceding information was obtained from the court records.

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 valid disclosure before they become aware of any compliance action being initiated by the Canada Revenue Agency (CRA) 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.

Further information on convictions can be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.