Income tax preparer sentenced for tax fraud

Deanna Lynn LaValley has been fined $17,439 and ordered to serve 22 months under house arrest.

  • Nov. 13, 2015 5:00 p.m.

An Okanagan tax preparer will pay a fine and be placed under house arrest for 22 months for being convicted of filing fraudulent tax returns for herself and her clients while working for the DeMara Consulting Inc. firm.

Deanna Lynn LaValley was sentenced Tuesday in British Columbia Supreme Court in Kelowna after being convicted on July 8, 2015, of two counts of false statements under the Income Tax Act and one count of fraud under the Criminal Code, relating to the preparation of fraudulent income tax returns for herself and for clients of DeMara Consulting Inc.

She was fined $17,439, representing 100 per cent of the total federal income tax owing, along with the 22-month house arrest conditional sentence.

A Canada Revenue Agency  investigation had determined that LaValley and her business partner Donna Marie Stancer, while operating DeMara Consulting Inc., claimed false capital and business losses totaling over $192 million on the returns of 224 clients, resulting in attempted refunds of $9,907,964.

Of this amount, only $52,832 was paid out. In addition, LaValley claimed refunds of $17,439, related to false losses totaling $450,764 on her 2007 to 2010 personal income tax returns.

Stancer was also convicted of two counts under the Income Tax Act and two counts under the Criminal Code on July 8, 2015, and will be sentenced at a later date.

Kelowna Capital News