Whitehorse Daily Star

Couple fined over unfiled returns, must pay $25,000 in back taxes

A local businessman and his wife were fined a combined $7,000 for not filing tax returns in what was called a case of 'extreme and unlawful procrastination.'

By Whitehorse Star on March 11, 2004

A local businessman and his wife were fined a combined $7,000 for not filing tax returns in what was called a case of 'extreme and unlawful procrastination.'

Paul and Lori Choquette, both 51, pleaded guilty Wednesday afternoon to a single count each of failing to file a tax return after the Crown combined numerous charges into one.

Lori Choquette was initially charged under the Income Tax Act of not filing her taxes for seven of the years between 1994 and 2001.

Her husband, Paul, who until recently owned Yukon Photo in the Hougen Centre, failed to file his return for six of the seven years between 1995 and 2001.

He is also president of the Yukon Convention Bureau, which tries to attract groups to host their meetings and conferences in the territory.

Defence counsel James Tucker said there was never any intent by the couple not to pay their taxes.

Prosecutor Ludovic Gouaillier pointed out that Paul Choquette filed the couple's tax return in 2000, the same year he made a $50,000-contribution to a retirement savings fund and received $7,000 back.

The prosecutor suggested the man had some savvy about tax-filing and was 'not totally oblivious about what the obligations were.'

After the couple was asked in 2002 to file their returns for the missing years, there was a 'fairly extensive' exchange of phone calls and correspondence between them and Revenue Canada. It ended in tax charges being laid in September 2003, Gouaillier explained to the court.

The couple has since filed their returns. Paul Choquette was found to owe a little less than $14,000 in back taxes while his wife was assessed as owing about $11,000.

At its core, this is 'a case of extreme and unlawful procrastination,' Gouaillier noted the investigating officer as saying.

The minimum fine for a charge of failing to file a tax return is $1,000.

Given the number of years involved and because a significant effort was required to get the Choquettes to file their returns, the Crown asked that Paul Choquette be fined $4,000 and his wife $3,000.

The defence agreed with the suggested fine, which justice of the peace Dean Cameron handed down.

Though the couple has fallen on tight times, Revenue Canada has noted they own property and have the retirement savings put away in 2001, said Gouaillier.

Paul Choquette's business recently closed and he's currently looking for work, said Tucker, who produced a $5,000-cheque from the couple to help cover the fine.

Cameron split that money evenly between their fines, and told Lori Choquette to pay her remaining $500 within six months. Her husband will have the same time to pay his remaining $1,500-debt.

'And if it can be repaid sooner, it will,' Tucker told the court.

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