VANCOUVER – West Vancouver dentist fined over half a million dollars and paying taxes on more than $ 2 million in income he failed to report over five years years.
According to the Canada Revenue Agency, Dr Peter Balogh was convicted in provincial court earlier this week in a case that dates back more than a decade.
The court ordered Balogh to pay a fine of $ 578,885, a total equivalent to the amount of tax he evaded in the 2005 to 2009 tax years, according to the CRA. Balogh is also required to pay the taxes he owes, as well as accrued fines and interest, the CRA said.
The agency said Balogh was also given an 18-month suspended sentence in the case.
Balogh was initially convicted of one count of misrepresentation and five counts of failure to report taxable income under the Income Tax Act in August 2016.
After the verdict, the court stayed the proceedings “for failure to be tried within a reasonable time,” the CRA said in its statement. This suspension was subsequently overturned and an appeal by Balogh was dismissed by the British Columbia Court of Appeal.
The CRA said Balogh was a follower of a group that promoted “the pseudo-legal notion that a person can self-classify as a” natural person “and thus be exempt” from income taxes.
Beginning in 2005, Balogh opted to bill his dental office for services rendered, rather than receiving a salary as he had done in previous years, the CRA said.
“Dr Balogh wrote checks to himself and asked the company’s accountant to record all payments made to him as contractor’s fees, despite repeated warnings from his accountant that his claim to be a natural person was not justifiable, ”the agency said.
The CRA said its investigation found Balogh under-reported income for the 2005 and 2006 tax years, and failed to file income tax returns for 2007 to 2009.
“In total, Dr. Balogh did not report $ 2,177,000 of taxable income and evaded $ 578,885 in income tax for the 2005 to 2009 tax years,” the CRA said.