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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