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Local Business Owner Fined For Tax Evasion

By 250 News

Wednesday, January 13, 2010 03:56 AM

Prince George, B.C.- The former owner of Charlie’s Girl, a hairdressing salon in the Pine Centre Mall, has been sentenced after pleading guilty to one count of personal income tax evasion, one count of failure to remit goods and services tax (GST) and one count of corporate tax evasion. 
 
Businesswoman, Dragana Babic, owner of Lunido Holdings Co. Ltd (Lunido) which  operated Charlie’s Girl, ( until it was recently sold) was fined  in Provincial Court $48,165 representing 75% of federal taxes and un-remitted GST evaded. Babic was also handed a 16 month conditional sentence and ordered to pay the fine in full by March 13, 2010.
 
A Canada Revenue Agency (CRA) investigation of Lunido determined that Babic concealed a significant portion of the cash revenue from the business by not recording cash sales, having no cash controls or cash register, altering her own hand written accounting records, and depositing cash from sales in personal bank and credit card accounts. 
 
The Canada Revenue Agency says that in total, Babic did not report $92,981 in corporate income, $13,777 in un-remitted GST and $187,669 in personal income for a period beginning in 2004 through 2007.

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Comments

Hmmmm a temporary war measure act, income tax
Sometimes you win, sometime you lose.

But wait loosing, and only paying 75% of tax is still winning!

Unless the fine is in addition to having to pay the taxes, I don't think this would be a deterrent to tax evasion.

Anyone know if they have to pay the fine and repay the taxes?
The fine is in addition to all the taxes owing.

It is really confusing to me why someone who owns a business would take this chance. She must have been doing payroll and bookeeping?? She had lots of employees. Wierd!
proab;y tired of seeing her tax dollars going to waste
As the economy in this town plummets, we will see a lot more of this type of thing happening.

While I dont condone tax evasion, there is absolutely no doubt that the Governments of the day are killing off business and individuals through excess taxation.

Government waste is beyond beleif. The whole system has to be shut down, cleaned out, and restarted. Thats not likely to happen soon.

If you can find one politician anywhere who gives a S..T how much tax you pay or how your tax dollars are spent I would like to meet him/her.

They are all feeding at the public trough. Grunting and groaning and fighting with each other to get their hands on our money, so that they can spend it and make themselves feel good.

Until Joe/Jane taxpayer gets off their collective asses and starts to put pressure on these politicians, there will be no changes.

The last fiasco is the HST, and guess what???? Politicians are telling us this is a good tax for us. The problem is some people actually beleive them.

The Government needs the GST because of thier incompetance. It is the responsibility of the voters to throw these dudes the hell out of Government. To do otherwise is to reward bad behaviour.

Palopu has it right.
As for my own opinion;
Why does this story have to be reported in the news? Why drag this lady (who I do not know) through the mud? Is she really a criminal? I think not. Yes she broke the law, but the government does tax small business excessively, and the temptation to skim some cash must be hard to resist.
To me, it is too great a risk to take, because you will get caught, sooner or later, and the government has no sense of humour about these things. Even if you are merely late with your remittance, the consequences can be harsh, you will have to pay a fine, and the amount already owing within a short period of time, or they fine you some more. pretty much like dealing with your neighbourhood loan shark, except the government just breaks your bank account, not your bank account and legs. money money money.
metalman.
But then if this HST does not become a reality where will the City get funds for projects like the new cop shop or maybe a performing arts centre.

Oh and then there is Boundry Road. This should help to drive the City economy up through the roof.Employment will drop by atleast a couple of points.

Now is this idea good or is my spelling putting you off.
Cheers
Metalman,
How do you factor small business's are being taxed excessivly? They pay 13%....that is pretty cheap if you ask me. Just my opinion.
And yet the big CEO's getting millions
(billions ?) in "bonuses" for their job
well done!

The small businesses and the working class
pay all the price for their luxurious life.
Now, even the feds joining the "well spending" by getting more paid vacation
and doing nothing for this country.
I do not see any democracy in this
government at all.
Did any one notice, since the Harper government is in, Revenue Canada is
sweeping all the corners and trying
to get any one on fraud. They should
start with themselves first and when
the head is not rotten the whole body
will be much healthier!
Isn't this an invasion of privacy, I feel this should not have reported as a news report. It isn't any of our business what this business does! in relation to government taxes. It is personal and it is almost like public stoning. I am sure there is other business who have done the same thing. Why pick on this business.
Wow! Thats a lot of money she concealed! How embarrassing to have it announced to the whole world, haha! Nothing like a little public humiliation to add to the punishment :) Don't do the crime if ya can't pay the fine!
Can someone explain why white collar crime (like tax evasion) should be treated differently in the media from any other type of crime? We expect to see the names of people robbing banks, why is it different in this case?
Remember the Valemount Campground ?
Who were the bad guys there ?
Because this current event is published
does not mean they are 100% right or
true.
The guy from Valemount lost everything
and it was not his fault, but the taxmen.
That is why we should be carefull with
our judgements toward the recent event.

Only the owner of this business knows
the real truth, if she really intentionally
did something crooked, but it is not right
to beat up on her to publish it.
Even if the taxmen would be 100% right,
then either should publish every body
whom cheated with taxes, or nobody.
They should start with the businesses
and people, who got away with even bigger
crimes!
As I said before, fix the system from
head to toe, not from toe to head!

Just curious, when was the last time you heard the name of a business other than large companies or corporations who have been named out right in the paper or on our local news about tax evasion. I am not saying that it is fine what this business did. Would you like the public to know your personal business in regards to government taxes etc. It is the same thing,only this person is a private business owner. It is not a crime against you or that she could possibly harm you, as a person robbing a bank (yielding a weabon perhaps)could harm someone. Our media sometimes is a little
brash on commenting on what is new worthy and what is not. For example like putting a picture of a car accident on the front page of the newspaper showing people (not at there best moment) without thinking of the feelings of those people involved.
How is the privacy law ?
Any of you know, if there are some
could be applied for these kind of
situation ?

Hope, there is something, because not
everybody is a pure criminal just b/c
got messed up with taxes, or as Starbright
mentioned there are situations where at
least your consent should be required
for publishing about you.
numbers:
I am not referring to only the corporate income tax, which is higher than 13% by the way. It varys according to circumstance and volume. How about payroll deductions, and employer contributions for CPP and EI? Not a tax? Inumerable fees, levies, recycling fees, environmental fees,
pst, gst the list goes on. And remember, except for the soon to be defunct pst, the corporation foots the bill for the collection and remittance of all the taxes and fees.
Right now, collection of pst is rewarded by a small kickback, does not cover the cost, but nice to have nonetheless.
metalman.
Some one got caught not "rendering unto Caesar". Besides, it is only against the law if you get caught. Even pot growers don't get hassled by Revenue Canada. Cheaper to have an illegal business. Maybe it will catch on one day. Haven't heard anymore about those GST swindlers a few years ago. I recollect the government brushing it off and stating the criminals "owe to the government". Not stolen money, mind you. Just money owed.
Anyone ever read the "Police Beat" or "Court Docket" sections in the PG Citizen or Free Press? Are those people's privacies being violated?
Lunido Holdings Co. Ltd., owned by Dragna Babic, is the FORMER owner of Charlie's Girl.

The business changed hands, as far as I understand, on December 31, 2009.

The current owners, in my experience, operate with the highest integrity.

I think it would be fair to call them for their comment so their new business venture - the current rendition of Charlie's Girl - is not painted with the same brush as the former owner.
Nice to see the original story was corrected to reflect a change in ownership. Kudos Opinion250.
To all you bleeding hearts who think this person's privacy rights have been violated - get over it. She did not "mess up on her taxes", she purposely avoided paying them. She's lucky she got a conditional sentence. The fact that she has until only March 13 2010 to pay a 48K fine (and expectations are that she will) speaks volumes. Any reasonable person knows you have to report income and pay taxes unless you have a legal reason not to. She didn't. Pay up.
The Government of the day estimates that there is approx 9/10 billion dollars outstanding in unremitted GST, and Income taxes.

When the economy goes into the tank, Governments put on the pressure to collect these taxes, which will help to offset the deficit. Perhaps they should keep the pressure on at all times.

Those people who avoid paying taxes, cause the people who do pay, to pay more. In other words they are trying to get a free ride.

With a possible few exceptions, they all know they are breaking the law, and that if they get caught they will have to pay the piper.

Such is life.