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Big fine for tax-evading Dauphin pharmacy

Drug companies paid for family wedding, new furniture, golf carts

The owners of the Dauphin Clinic Pharmacy have been fined more than $77,000 for evading income taxes.

The Canada Revenue Agency says that Haverluck Enterprises, which operated the pharmacy, pleaded guilty in the Dauphin Provincial Court to charges of evading federal income tax.

Altogether, the pharmacy failed to report nearly half a million dollars in income from the 2004–06 tax years. Court records show that they failed to report more than $100,000 of household furniture, a custom wine cellar and a golf cart that were received from a pharmaceutical company. A drug wholesaler also paid for a family wedding and another golf cart that were improperly claimed as business expenses. Personal expenses of Myles Haverluck, one of the corporation’s directors, were also falsely claimed as pharmacy purchases or advertising expenditures.

The fine of $77,130 represents three-quarters of the federal taxes evaded. The Canada Revenue Agency says that when individuals are convicted of tax evasion, they must still repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the Canada Revenue Agency. In addition, the court may fine them, upon summary conviction, up to 200 per cent of the taxes evaded and impose a jail term of up to two years.

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 tax investigation against them and may only have to pay the taxes owing, plus interest.

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