Canada Revenue Agency - Bookkeeper Convicted for GST/HST Evasion

Canada FINTRAC News & Advisories

Filed May 16th, 2025

Detected March 16th, 2026

Summary

The Canada Revenue Agency announced that Aeddy Leung, a bookkeeper from Surrey, British Columbia, received a conditional sentence order and probation for willfully evading nearly $1 million in GST/HST. Leung pleaded guilty to filing false returns and failing to file returns for hotels he managed.

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What changed

The Canada Revenue Agency (CRA) has announced the conviction of Aeddy Leung, a bookkeeper based in Surrey, British Columbia. Leung was sentenced to a two-year-less-a-day conditional sentence order and two years probation after pleading guilty to willfully evading remittance tax and making false statements on GST/HST returns. The investigation revealed that Leung, while acting as bookkeeper for two hotels, intentionally filed false GST/HST returns and failed to file others for the 2014-2018 periods, resulting in the evasion of $987,863 in net GST/HST owed by the hotels.

This enforcement action highlights the serious consequences of tax evasion, including potential jail time, fines, and the requirement to repay the full amount of tax owed plus interest and penalties. Regulated entities and individuals involved in financial record-keeping should ensure strict adherence to tax laws and accurate reporting of GST/HST. The CRA continues to aggressively pursue tax evasion and false claims, emphasizing the importance of maintaining the integrity of Canada's tax system.

What to do next

Review internal controls for GST/HST reporting and remittance.
Ensure all GST/HST filings are accurate and submitted on time.
Report any suspected tax evasion activities to the CRA.

Penalties

Conditional sentence order for two years less a day and two years probation. Convicted taxpayers must pay the full amount of tax owing, plus related interest and any penalties assessed by the CRA.

Source document (simplified)

Surrey bookkeeper cooked the books and underreported almost $1 million in GST/HST

May 16, 2025

Vancouver, British Columbia

Canada Revenue Agency

The Canada Revenue Agency (CRA) announced that Aeddy Leung of Surrey, British Columbia, received a conditional sentence order for two years less a day and two years probation on April 15, 2025, at the Provincial Court of British Columbia (Robson Square). Leung pleaded guilty to willfully evading remittance tax and to making false statements in Goods and Services Tax (GST)/Harmonized Sales Tax (HST) returns.

A CRA investigation revealed that Leung, as the bookkeeper of the Quality Hotel Airport (South) and the Coast Vancouver Airport Hotel, intentionally filed false GST/HST returns and failed to file GST/HST returns as required for the 2014-2018 reporting periods. This resulted in the evasion of $987,863 in net GST/HST that was owed by the hotels.

All case-specific information above was obtained from the court records.

The CRA would like to acknowledge the significant contribution of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to this investigation.

Combatting tax evasion and other financial crimes is important for the protection of Canada’s tax base. The majority of Canadians pay their taxes in full and on time. To ensure that the tax system is fair for everyone, the CRA makes sure that people who try to avoid or evade paying taxes are held accountable. Willfully failing to follow Canada’s tax laws could result in serious consequences, including reassessments, the imposition of civil penalties, criminal tax investigations and prosecutions resulting in court imposed fines, jail time and a criminal record.

In addition to the court imposed fines and/or jail sentences, convicted taxpayers have to pay the full amount of tax owing, plus related interest and any penalties assessed by the CRA.

The CRA is dedicated to maintaining the integrity of Canada’s tax system, thereby contributing to the social and economic well-being of Canadians. The CRA continues to aggressively pursue tax evasion, and false claims with all the tools available to it. The CRA works to make sure that individuals and businesses report all income earned and only claim benefits to which they are entitled, so that important benefit programs can be administered to those who need them. Any individual or business who underreports income, or claims losses or benefits to which they are not entitled may have to repay the benefit amounts and may be subject to other possible action.

The CRA has set up a free subscription service to help Canadians stay current on the CRA’s enforcement efforts.