Festus Bayden of E & F Tax Associates convicted of fraud over $5,000
Brampton, Ontario – In a recent development, Festus Bayden, a partner in the tax preparation business E & F Tax Associates, was sentenced to three years in jail for his involvement in a fraudulent tax scheme. The Canada Revenue Agency (CRA) revealed that Bayden pleaded guilty to one count of fraud over $5,000 under the Criminal Code.
Bayden, formerly associated with Bankay Financial Services Inc. in Toronto, Ontario, was found guilty of claiming more than $34 million in false charitable donations on individual income tax returns for the 2004 to 2006 tax years. He prepared these returns for over 30 clients, promising them larger refunds or reduced taxes through the scheme.
The investigation further uncovered that Bayden provided his clients with false charitable donation receipts for amounts far greater than what they actually donated. He charged his clients approximately 10% of the face value of the false charitable donation amounts claimed.
Despite fleeing Canada to evade prosecution, Bayden was apprehended upon his return to the country on June 13, 2023. He was sentenced on February 27, 2024, in the Ontario Court of Justice in Brampton.
The CRA emphasized that tax promoters who promote or sell schemes to evade tax laws will be held accountable, along with individuals who use such services. The agency reiterated its dedication to maintaining the integrity of Canada’s tax system and aggressively pursuing tax evasion and false claims.
The CRA urged individuals and businesses to report all income earned and only claim entitled benefits to ensure fair administration of benefit programs. Those found underreporting income or making false claims may have to repay benefits and face other possible actions.
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