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Winnipeg Free Press - ONLINE EDITION
Canada Revenue Agency fines pharmacy $51,834
Harris Pharmacy Ltd. in Neepawa has been fined $51,834 by the Canada Revenue Agency after pleading guilty to two counts of making false statements in a return.
The pharmacy under-reported its taxable income by $154,946 for 2005 and 2006, and understated GST amounts for 2005 and 2007.
Court heard that pharmacy operators used two schemes. The first involved purchasing items for personal use -- fishing trips, sports memorabilia and concert tickets -- that were expensed to the corporation’s books and records. The second involved personal use items provided by a pharmaceutical company -- a hot tub and spa, sports equipment and satellite television equipment -- were added to the inventory of Harris Pharmacy Ltd., and created false expense amounts for the corporation.
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