Tax preparer and charity director convicted of fraud
Brampton, Ontario, January 14, 2014...The Canada Revenue Agency (CRA) announced today that, on January 10, 2014, David Ajise, a former tax preparer operating in Toronto, Ontario, was sentenced in the Ontario Court of Justice in Brampton, to a 30 month jail term for fraud over $5,000. On July 22, 2013, Eto Ekpenyong Eto was also sentenced to a conditional sentence of two years less a day for fraud over $5,000 for the same case. Appearing at the Ontario Court of Justice in Brampton, Ajise was found guilty of one count of fraud over $5,000 under the Criminal Code of Canada on June 14, 2013, while Eto pleaded guilty to the same charge on May 23, 2013.
Ajise is the former proprietor of Datronix Solutions, a Toronto-based tax preparation service. A CRA investigation revealed that, Ajise and Eto participated in a scheme which generated $5,023,456 in fraudulent charitable donations for the 2003 to 2005 tax years. In addition to a fee of $30 to $50 for tax return preparation, Ajise charged his clients 10% of the face value of the fraudulent charitable donation receipts he provided. The fraudulent receipts were claimed by Ajise’s clients on 623 income tax returns and resulted in taxes evaded of $1,413,166.
Eto, in his role as a director of the Tractors for Our Daily Bread Canada charity, provided charitable donation receipts for amounts larger than the donor’s actual contribution. Although Eto himself did not personally gain from his participation in the fraudulent charitable donation scheme, his actions assisted in the fraud.
The preceding information was obtained from the court records.
“Our taxes pay for the high level of government services that Canadians count on,” said Darrell Mahoney, Assistant Commissioner of the Ontario Region of the Canada Revenue Agency. “When someone tries to evade taxes, it affects all Canadians.
Taxpayers 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 may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers 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 Web site at www.cra.gc.ca/voluntarydisclosures.
Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.
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