Revenu Québec is likely to receive only a tiny fraction of the record nearly $230 million fine imposed last year on an entrepreneur “coach” who attempted to commit a mega-tax fraud.
On March 2, a numbered company owned by 48-year-old Robert Parent filed for bankruptcy, ending any chance that tax authorities would recover some of the $114 million fine levied on the company.
“There will be no dividends for the creditors”, specifies in the newspaper of the trustees in the file, Jean Lelièvre.
The expert is surprised that the state was able to impose such a high fine on a company that had neither assets nor income.
“It’s the first time in my life that I’ve seen such a situation,” says Mr. Lelièvre.
” For what [le gouvernement] did he not appear at the meeting of creditors? Seems to me you show up with $100 million in debt. It’s special. »
According to Revenu Québec, Mr. Parent’s numbered company completed a fictitious $750 million transaction with another of his companies, Licorne Luxuriante Inc., in June 2019.
The following month, the numbered company requested more than $112 million in tax refunds in connection with that bogus transaction — an amount Revenu Québec never paid.
“Stupid File”
“As astronomical as the numbers are, it’s a stupid file,” says Jean Lelièvre.
In February 2022, Robert Parent pled guilty, admitting to forming Licorne Luxuriante “solely for the purpose of carrying out a fictitious transaction.” In addition to the $114 million fine imposed on his number company, he received a personal fine of the same amount and a 12-month suspended sentence.
It seems unlikely that Mr. Parent, who presents himself on his website as a “certified trainer of international renown”, will be able to personally pay the fine imposed on him. But it will remain on his record until he goes bankrupt.
“It’s a symbolic penalty, but if he wins the lottery one day, maybe he can pay,” says Marc Tassé, a professor at the University of Ottawa and a specialist in financial crime.
Crazy fines?
In this extraordinary filing, Revenu Québec denies imposing eccentric fines.
“We did our job. Our prosecutors managed to get a verdict in our favour,” said a spokesman for the organization, Claude-Olivier Fagnant.
The situation would have been much worse if the tax authorities hadn’t blocked the tax refund from the start, notes Mr Tassé.
“I give the officials kudos for being quick enough not to write the check,” he said.
Robert Parent did not call Le Journal back.
He said last year that he believes the case constitutes “an act of abuse by Revenue Quebec.”
In 2018, Revenu Québec secured fines totaling $211 million against several individuals and companies in two fraudulent gold processing cases. It is not known how much the state received in the end.
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