SURREY BUSINESSMAN HARCHET KALER SENTENCED FOR INCOME TAX EVASION

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THE Canada Revenue Agency (CRA) announced on Friday that Harchet Kaler of Surrey was sentenced on Thursday in Robson Square Provincial Court after pleading guilty to one count of tax evasion. Kaler was fined $111,675, representing 75 percent of the federal tax evaded, and also given an 18-month conditional sentence order.
 
A CRA investigation determined that Kaler failed to report a total of $517,744 in income on his 2005 and 2006 personal income tax returns. It was found that Kaler, who makes his living by buying and selling real estate, purchased two properties in Surrey, in November of 2004, in his brother’s name. The first property was purchased with two other partners, and was sold in August 2005 resulting in Kaler realizing $470,753 in income from this transaction.
 
The second property was purchased with four other partners and was sold in January 2006. Kaler’s income from this transaction was $46,991. Kaler failed to report the proceeds of these transactions in his 2005 and 2006 income tax returns, thereby evading $136,519 in federal income tax in 2005 and $12,381 in federal income tax in 2006.