Pubdate: Sat, 13 Jan 2007
Source: Ottawa Citizen (CN ON)
Copyright: 2007 The Ottawa Citizen
Contact:  http://www.canada.com/ottawa/ottawacitizen/
Details: http://www.mapinc.org/media/326
Author: Andrew Seymour, The Ottawa Citizen

MAN GETS SIX MONTHS FOR EVADING TAX ON MARIJUANA PROCEEDS

Raid Netted $190,000; $47,132 Left Owing

An Ottawa man was sentenced to six months in jail yesterday for
failing to pay nearly $50,000 in taxes on revenue from growing marijuana.

Van Hai Le, 36, was given the jail time in lieu of a fine, following a
Dec. 11 guilty plea to one count of income tax evasion.

The Canada Revenue Agency investigation revealed Mr. Le avoided paying
$47,132 in federal income tax when he failed to report approximately
$200,000 of earned income on his 2004 tax return.

Mr. Le was also handed another six-month jail term after pleading
guilty to the possession of proceeds of crime. The two sentences will
run concurrent to a sentence of two years less a day that Justice Hugh
Fraser handed the man following a guilty plea on a charge of
conspiracy to produce marijuana.

According to court records, Mr. Le was one of a group that grew
marijuana in three Ottawa residences on Canyon Walk Drive, Halley
Street and Viseneau Drive.

When police searched Mr. Le's home on Windhurst Drive, they found
$166,225 in Canadian cash, along with $19,980 in U.S. currency.

"Proceeds of crime are considered earned income and considered
taxable," said Canada Revenue Agency spokesman Sam Papadopoulos yesterday.

Mr. Papadopoulos said Mr. Le could have reported the earnings as
either "business" or "other" income on his tax return.

"You don't have to tell us where it's coming from, but you have to
report it," said Mr. Papadopoulos, adding the return could still be
audited if it meets certain criteria.

The convictions and jail sentence come after Mr. Le was charged, along
with more than 30 other Ottawans, as part of Project Codi, a joint
Canada-U.S. operation targeting what police called a sophisticated
money-laundering and drug network based in Ottawa.
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MAP posted-by: Derek