The defendants were convicted of 69 counts under the Employer Health Tax Act and 62 counts under the Retail Sales Tax Act, involving the failure to remit over $1,675,000 in taxes.
The sentencing decision addresses a sophisticated, multi-year tax evasion scheme involving the operation of multiple related corporations and the deliberate mischaracterization of employment relationships.
The court imposed a custodial sentence of 21 months imprisonment, substantial fines totaling approximately $9.9 million, and probation, finding that the offences constituted fraudulent conduct warranting incarceration despite the defendant's lack of prior criminal record.
