A Brampton man has been sentenced to three years in jail after admitting to falsely claiming $34 million in charitable donations on tax returns he prepared for clients.
Canadian tax authorities revealed the sentence in a press release on Friday, sharing insights from the court proceedings.
According to the Canada Revenue Agency (CRA), Festus Bayden was a partner in a tax preparation business named E & F Tax Associates, also operating as Bankay Financial Services, Inc. in Toronto and Brampton.
Following a CRA investigation, it was discovered that Bayden had falsely claimed over $34 million in charitable donations on individual income tax returns he prepared for more than 30 clients between 2004 and 2006.
“Bayden advised his clients that they could obtain larger refunds or reduced taxes by making charitable donations for amounts significantly less than what was claimed on their income tax returns,” the CRA stated. “He then furnished his clients with fabricated charitable donation receipts from various organizations he was affiliated with.”
Bayden charged his clients approximately 10% of the stated value of the fraudulent charitable donations.
After being charged, Bayden fled Canada but was apprehended upon his return on June 13, 2023.
On February 27, 2024, the Ontario Court of Justice in Brampton sentenced him to three years in jail after he pleaded guilty to one count of fraud over $5,000.
In its statement, the CRA reiterated its commitment to pursuing tax promoters—individuals or entities promoting schemes that breach Canadian tax laws. The agency emphasized its accountability stance towards both promoters and their clients.
“The CRA remains resolute in its pursuit of tax evasion and false claims, utilizing all available resources,” the agency emphasized. “We ensure that individuals and businesses report all income earned and only claim legitimate benefits, enabling crucial benefit programs to assist those in need.”
The release cautioned that individuals or businesses found underreporting income or making illegitimate claims could face repayment obligations and potential legal repercussions.