Yesterday, Michael Wolfe, a car dealer was found guilty under the federal Excise Act of seven counts related to a GST scheme. Wolfe, who had no previous criminal record, was sentenced to two years in jail and was taken into custody at B.C. Supreme Court for defrauding Ottawa of that amount in a long-running GST fraud. He was also fined $7 million. Later a bail was granted pending an appeal and Wolfe was released. The case of fraud involved two co-accused, charges against whom were stayed. One is the former owner of the Rags to Riches used-car lot, Sameer Mapara, who is sentenced for a first-degree murder. The other is Jay Grant, former fleet manager of Port Chev Olds.
Wolfe’s then-dealership, Port Chevrolet Oldsmobile in Port Coquitlam claimed millions of dollars in GST rebates on 1,600 vehicles imported by the dealership. According to prosecutor Les Mackoff, this is the largest GST fraud scheme ever prosecuted. However the defense attorney Kimberly Eldred believes there had been a larger one in Ontario.
Over a two-year period this group claimed GTS on vehicles that did not exist and earned about $8 million. Mapara claimed money for the imported cars for which he had Asian buyers. These cars were exempt from the GST, as they were exports.
According to Madame Justice Kirsti Gill Wolfe had the role of a facilitator and the one planning the scheme. Other than the benefit that went to Port ChevOlds, Wolfe had no other personal benefits. The court imposed the mandatory minimum fine of $7 million, pursuant to the Excise Tax Act and gave Wolfe time until August 2014 to make the payments. However Gill noted that its unlikely he will be able to repay the amount.
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