Pubdate: Fri, 11 Mar 2005
Source: Regina Leader-Post (CN SN)
Copyright: 2005 The Leader-Post Ltd.
Contact:  http://www.canada.com/regina/leaderpost/
Details: http://www.mapinc.org/media/361
Author: Anne Kyle, The Leader-Post
Bookmark: http://www.mapinc.org/coke.htm (Cocaine)

DRUG DEALER FINED FOR NOT DECLARING ILLEGAL INCOME

A jailed Regina cocaine dealer is in trouble with Revenue Canada, in part 
because he didn't pay taxes on his illegal earnings.

Bradley Daniel Roth pleaded guilty Wednesday to tax evasion after failing 
to declare $189,083 in income on his 2001 and 2002 tax returns, some of 
which was earned from drug trafficking.

Roth, 42, who evaded paying federal income taxes totalling $37,812 by 
failing to report his total income, including the proceeds of crime, was 
fined $30,000, according to the Canada Revenue Agency.

On Oct. 20, Roth pleaded guilty to criminal charges resulting from his 
trafficking in cocaine. From information obtained through a court order, a 
Canada Revenue Agency audit was able to determine that part of the 
unreported income results from his criminal activities, said Debbie 
Johnson, a spokesperson for the Regina Tax Services Office.

"I think the key with this particular case was that there was unreported 
(legitimate earnings) income over and above the criminal aspect," Johnson 
said, explaining the Income Tax Act doesn't differentiate between income 
derived legally or illegally. The police and the Criminal Code deal with 
the illegal aspects, but as far as the Income Tax Act is concerned all 
income must be declared.

In default of the fine, Roth will be required to serve six additional 
months concurrent to the 26 months he is currently serving in a federal 
penitentiary for drug trafficking.

Canada Revenue Agency will proceed civilly against Roth to recover the 
outstanding taxes plus penalties and interest, she said.

"We have been actively working in co-operation with the integrated police 
units in Canada and around the world now on proceeds of crime for a couple 
of years," Johnson said. "I am not sure how many have ended up in tax 
prosecutions. In most instances, I would say these individuals would end up 
with tax reassessments, but in certain circumstances we would also proceed 
with tax charges," she said.

The CRA's Special Enforcement Program undertakes audits and other civil 
enforcement actions against those who earn income in organized crime and 
other criminal activities. Its overall objective is to minimize the 
accumulation of illicit wealth thereby causing maximum disruption of 
criminal operations, particularly the illegal drug trade, the agency said.
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