The Saker Sisters CRA Scam

[CaptainCrunch]

I thought this article was an interesting look at the Sakar Sisters, and the rise and falls of an $56 million dollar food empire. (Housewives in Heels)



https://www.macleans.ca/longforms/ho...t-of-millions/


https://www.cbc.ca/news/canada/nova-...akes-1.6363688

A Nova Scotia Supreme Court justice says rather than self-described housewives who make cupcakes, four Cape Breton women baked up an elaborate tax fraud scheme.
In Thursday's verdict, Justice Robin Gogan found defendants Lydia Saker and daughters Nadia Saker, Angela MacDonald, Georgette Young, and their 10 companies guilty of 20 charges — half of which were related to fraud. The remaining convictions came under the federal Excise Tax Act.
It was all a part of a $3.6-million tax fraud scheme related to GST and HST refunds that the Canada Revenue Agency say escalated in size between January 2011 and July 2015.
"The magnitude of the fiction in this case is breathtaking," Gogan said. "The hubris of it is shocking. When CRA began to review, and later audit the credit returns, the defendants doubled down on their fraud by supplying fictitious invoices and amending claims in an attempt to hide the massive scale of their fraud."

[Hack&Lube]

One of the many vendors listed by the Sakers was Vandalee Industries, a name nearly identical to that of George Costanza’s fake employer on Seinfeld

[Hack&Lube]

So this was a scam to claim they paid more in GST to vendors than they collected in their sales...and yet their sales were totaling $80 million. I guess they must have also been claiming that while they had high revenues and GST refunds due, that they were operating on very low margins or losses so they would probably have very little business tax to pay.

[DoubleF]

Wow.. interesting story for the nerd in me. Very much more so if you understand the intrinsic facets of how they were trying to bend the rules. The approach was still way too simple, with majority fake invoices and arms length parties which is why it was so easy for them to get caught once they were audited.

In all honestly, I've been thinking that there's a way to do this "properly" to launder money. You sell real goods with surge in value, blend in a little bit of barter exchange of goods with "arms length parties" secretly working in concert. Like an adapted MLM with real goods/services paired with the crazy Eddie pumping fraud, but enough people working in concert to create and destroy to tie up loose ends with the off book numbers. Honestly speaking, I wonder if people do this already on Amazon and Uber by creating real transactions with fake "surge/demand/fishing pricing".

[Hack&Lube]

Originally Posted by DoubleF

Wow.. interesting story for the nerd in me. Very much more so if you understand the intrinsic facets of how they were trying to bend the rules. The approach was still way too simple, with majority fake invoices and arms length parties which is why it was so easy for them to get caught once they were audited.

In all honestly, I've been thinking that there's a way to do this "properly" to launder money. You sell real goods with surge in value, blend in a little bit of barter exchange of goods with "arms length parties" secretly working in concert. Like an adapted MLM with real goods/services paired with the crazy Eddie pumping fraud, but enough people working in concert to create and destroy to tie up loose ends with the off book numbers. Honestly speaking, I wonder if people do this already on Amazon and Uber by creating real transactions with fake "surge/demand/fishing pricing".

I'm sure this happens on a massive scale already but most businesses are smart enough to keep things within believability and on a low profile. A lot of it is probably similar to money laundering schemes where you at least need a real front business that does actual sales you can attribute sales to. The sisters had nothing but fake fronts and fake products.

[Erick Estrada]

The part that gets me is how cavalier they were about the entire thing. It's like they actually thought they would get away with it and weren't worried about consequences. I'm actually surprised it took as long as it did for the CRA to come down on them as the ladies spent years blowing them off.

[Hack&Lube]

Bookkeeping makes me miserable and I have a PTSD thing with it.

If given the choice, maybe I'd just go to jail for 3 years versus having to do accounting

[Locke]

Originally Posted by Hack&Lube

Bookkeeping makes me miserable and I have a PTSD thing with it.

If given the choice, maybe I'd just go to jail for 3 years versus having to do accounting

This is why they pay us the Helicopter money.

[Maritime Q-Scout]

Oh man, you have no idea how insane that whole situation is.

I didn't realize this made national news. Check out the Cape Breton Post articles on it (or Saltwire network). It's bonkers.

[Locke]

Originally Posted by Erick Estrada

The part that gets me is how cavalier they were about the entire thing. It's like they actually thought they would get away with it and weren't worried about consequences. I'm actually surprised it took as long as it did for the CRA to come down on them as the ladies spent years blowing them off.

I read through those articles and it was nuts. All of it.

First of all...it seems like they actually got a competent CRA Auditor which is like finding Jesus and a Unicorn flying a Zeppelin.

Secondly, that competent Auditor appears to have the patience of a Saint. I wont give her too much credit because you dont have to be Sherlock Holmes to figure out this half-assed scheme.

And these psychos pissed all of that away to the point of facing Jail time.

Do you have any idea how bad you have to screw up to face Jail Time for Tax Evasion in Canada? There are actual criminals who are just a little more polite in Court who dont go to jail.

I do love that CRA have recouped none of the money though. You keep being you CRA.

[cam_wmh]

Originally Posted by Locke

I read through those articles and it was nuts. All of it.

First of all...it seems like they actually got a competent CRA Auditor which is like finding Jesus and a Unicorn flying a Zeppelin.

Secondly, that competent Auditor appears to have the patience of a Saint. I wont give her too much credit because you dont have to be Sherlock Holmes to figure out this half-assed scheme.

And these psychos pissed all of that away to the point of facing Jail time.

Do you have any idea how bad you have to screw up to face Jail Time for Tax Evasion in Canada? There are actual criminals who are just a little more polite in Court who dont go to jail.

I do love that CRA have recouped none of the money though. You keep being you CRA.

My man, how do you really feel.

[Shazam]

CRA is the best.

[Locke]

Originally Posted by Shazam

CRA is the best.

Thems fightin' words!

[Shazam]

Originally Posted by Locke

Thems fightin' words!

I like how you can call them three different times and get three different answers.

[Locke]

Originally Posted by Shazam

I like how you can call them three different times and get three different answers.

You can call them over and over again until you get the answer you want, presuming they even answer the phone, but it doesnt matter because they dont have to stand behind what they tell you and they can make up whatever they want.

That is such a broken, broken organization.

[Shazam]

Originally Posted by Locke

You can call them over and over again until you get the answer you want, presuming they even answer the phone, but it doesnt matter because they dont have to stand behind what they tell you and they can make up whatever they want.

That is such a broken, broken organization.

Yeah any time some CPer insinuates that gov't is good, I know that they've never dealt with the CRA.

But I had them forgive all my late penalties last year. I told my accountant that I refuse to pay them and to tell the CRA that. They waived them all.

[Locke]

Originally Posted by Shazam

Yeah any time some CPer insinuates that gov't is good, I know that they've never dealt with the CRA.

CRA. You'll never find a more wretched hive of scum and villainy.

[81MC]

Hey remember when we were promised a transparent account of the outcome of a joint investigation of KPMGs tax avoidance schemes?

Every CRA official responsible for their antics should be publicly stoned.

[Locke]

Originally Posted by 81MC

Hey remember when we were promised a transparent account of the outcome of a joint investigation of KPMGs tax avoidance schemes?

Every CRA official responsible for their antics should be publicly stoned.

We have been. They are completely transparent that they've spent their expanded budget to crack down on off-shore tax avoidance to the effect of having recouped $0.

They may have laid some charges, but nothing has come of it. But this kind of thing takes time, I think its only been about 7 years?

[you&me]

Originally Posted by Locke

CRA. You'll never find a more wretched hive of scum and villainy.

Is it really a hive of scum and villainy, or just a pile of indifference and ineptitude?

I always thought the latter...