Mining company director sentenced for tax evasion

Thunder Bay - A city resident has been convicted of tax evasion and sentenced to a fine and conditional imprisonment.

The Canada Revenue Agency says Henry Grant Wetelainen was sentenced last week in a Thunder Bay court to two years less a day in jail and a $128,000 fine.

In 2023, he was convicted of three counts of tax evasion and one count of making false statements on tax returns, both as an individual and as a director of 1584859 Ontario Inc.

The CRA's investigation found that the numbered company, operated by Wetelainen, was primarily a management company in the mining and mineral exploration industry in the Thunder Bay area.

It is alleged that during his time as sole director and shareholder, the company failed to file corporate income tax returns for 2009 to 2011, thereby failing to report $367,000 in taxable income.

In addition, the company failed to file GST/HST returns for two years, resulting in $46,000 in unpaid taxes.

The investigation also found that Wetelainen failed to report approximately $577,000 in personal income on his personal tax returns from 2009 to 2011.

The CRA says he diverted these funds from the company for personal use and reported zero income on his personal tax returns.

Those convicted of tax evasion must pay not only the fines imposed by the court, but also all unpaid taxes, plus interest and any penalties assessed by the CRA.