Bridal Shop Proprietor Convicted for Failing to Pay Tax

The proprietor of Sherwood Bridal Company, Julian De Mel, and his brother Jeremy De Mel have been convicted and each fined $8,510 by failing to remit Retail Sales Tax (RST) collected from customers.

The Ministry of Revenue's Special Investigations Branch charged the De Mel brothers after discovering they failed to pay RST in the amount of $68,083 between October 2002 and September 2006.

The De Mels pleaded guilty to the charges under the Retail Sales Tax Act on March 24, 2009. They must also each pay a $2,127 surcharge to the Victims' Justice Fund.

The Sherwood Bridal Company, located at 52 Church Street South in Ajax, ceased operation on September 11, 2006.

The Ministry of Revenue operates a voluntary disclosure program. Corporations and individuals may come forward and voluntarily report past violations of provincial tax laws and pay any amounts owing. Prosecution and civil negligence penalties are waived in such cases. To qualify for immunity from prosecution and penalties, a disclosure must be truly voluntary - it cannot be prompted by a request for access to a taxpayer's business records or other ministry enforcement action.