An Ontario man, Festus Bayden from Brampton, has been sentenced to three years in prison for his involvement in a fraud case related to more than $34 million in false charitable donations.
Bayden, a partner in a tax preparation business known as E & F Tax Associates or Bankay Financial Services Inc. in Toronto and later in Brampton, claimed over $34 million in false charitable donations on individual income tax returns for the 2004 to 2006 tax years, which he prepared for over 30 clients.
The Canada Revenue Agency (CRA) revealed that Bayden advised his clients that they could receive a larger refund or reduced taxes if they made a charitable donation for an amount significantly lower than what was claimed on their income tax returns.
Despite fleeing the country before facing prosecution, Bayden returned to Canada in June 2023. He pleaded guilty to one count of fraud over $5,000 under the Criminal Code and was sentenced to prison on Feb. 27.
Bayden’s scheme involved charging his clients approximately 10% of the face value of the false charitable donation amounts.
The CRA emphasized the seriousness of such fraudulent activities, stating that these promoters deceive clients to avoid or evade taxes, benefiting financially from the fees they charge. The agency is committed to holding both promoters who facilitate tax evasion and clients who use such services accountable for their actions to maintain the fairness of the tax system.
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