Advisor who didn’t report commissions sentenced

An investment advisor who failed to report the commission fees he earned from clients has received a conditional sentence.

On Wednesday, the Canada Revenue Agency (CRA) issued a release stating that Joern Scholz, who was found guilty of one count of fraud over $5,000 by an Ontario court in April, will serve a conditional sentence of two years less a day.

Scholz, of Springwater, Ont., ran an investment counselling business, according to the release. A CRA investigation found that he did not report any of the commission fees he earned from his clients for the 2011–2013 tax years in his individual tax returns.

According to the CRA, those fees totalled $2,149,730 in unreported taxable income. By failing to report that income, the CRA said Scholz avoided $605,355 in federal income tax.

The CRA said Scholz also did not file GST/HST returns for the 2011–2015 tax years, which allowed him to avoid remitting $445,789 in GST/HST.

Scholz’s sentence includes 12 months of house arrest and a curfew for the remainder of his sentence. He has also been ordered to pay a fine of $445,789 for the GST/HST he failed to remit.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.