Accountant gets prison for $3.6M tax scam

A former chartered accountant in Mississauga is off to prison for the next two years for submitting more than $3.6 million in bogus income tax deductions on behalf of clients.

Justice Richard Schwarzl of the Ontario Court of Justice sentenced Imad Kutum on Friday to the prison term plus a $100,000 fine, which represents his illegal profits in a scheme featuring fake charitable donation receipts.

Kutum, who has voluntarily surrendered his professional accountancy designation, pleaded guilty to fraud last November for making bogus tax deduction claims of $3,674,000 between 2003 and 2008. Schwarzl said Kutum prepared 487 false income tax returns for clients and provided many of them with the bogus charity receipts.

The court heard that some men approached Kutum in 2003 with the scheme and a list of clients. Kutum received a flat flee or a percentage of the false charitable claim for his participation.

“Mr. Kutum was motivated by greed to participate in, and continue, this crime for many years,” Schwarzl said in his decision.

In 2007, Kutum told his accomplices he wanted to withdraw from the scheme because the money represented only a small portion of his business. However, he also appeared concerned about the Canada Revenue Agency becoming suspicious, the decision noted.

After being charged, Kutum provided a voluntary statement about his involvement and the role of accomplices, employees and clients without any offer of leniency.