Woodbridge Banquet Hall Owner Receives Jail and $9.9 Million in Fines for Tax Evasion
Convicted: Carlo Parentela aka Carmelo Parentela, and 1375923 Ontario Inc. operating as Le Jardin Banquet and Conference Centre Inc. (hereinafter "Le Jardin").
Location of Offences: Woodbridge, Ontario
Description of Offences: Under the Retail Sales Tax Act, Le Jardin and its director, Carlo Parentela, were found guilty of 62 counts, including:
- wilfully evading the payment of over $1.3M in retail sales tax collected from customers,
- 28 counts of making false or deceptive statements in tax returns, and
- 31 counts of failing to file returns as required.
Carlo Parentela and Le Jardin were also found guilty of failing to collect over $340,000 in retail sales tax as required under this Act.
Under the Employer Health Tax Act, Carlo Parentela and Le Jardin were found guilty of 69 counts including:
- wilfully evading the payment of over $290,000 in tax,
- five counts of failing to deliver annual returns, and
- 63 counts of failing to deliver monthly statements and remittances.
In addition, Carlo Parentela and Le Jardin were found guilty of operating without a vendor permit and for wilfully failing to register as a vendor.
Date of Offences: Between January 2007 and July 2012
Date of Convictions: July 5, 2019, Richmond Hill, Ontario
Date of Sentencing: March 6, 2020, Richmond Hill, Ontario
Penalties Imposed: Carlo Parentela was sentenced to 21 months in jail, fines totalling $9,964,775, and a two-year probation order. In addition, the court imposed a 25 per cent victim fine surcharge as required under the Provincial Offences Act.
Le Jardin received a suspended sentence on all counts.
Background: Carlo Parentela owns and operates Le Jardin, a banquet hall in Woodbridge, Ontario, that hosts numerous events such as weddings and corporate functions, all of which attracted retail sales tax during the period of the offences.
Full and part time staff were also employed to work at these events and the remuneration of employees is subject to employer health tax.
The Ministry of Finance's investigation determined that Carlo Parentela and Le Jardin failed to comply with the collecting, reporting and remittance obligations under both the Retail Sales Tax Act and the Employer Health Tax Act.