he Canada Income Company has launched an investigation into the Ontario bureaucrat who was fired after the alleged theft of $11.6 million in COVID-19 funds, the Star has discovered.
Sanjay Madan, a former pc specialist on the provincial Ministry of Schooling, has piqued the curiosity of federal tax authorities, sources say.
Madan can also be alleged to be the mastermind of a classy “kickback” scheme that stole $30 million from the Ontario authorities courting again to 2011. He has admitted beneath oath that he understated his earnings by “substantial quantities.”
Talking confidentially so as to talk about a case that’s earlier than the courts, insiders say the income company has been carefully monitoring the matter.
CRA spokesperson Paul Murphy declined any official remark.
“With a purpose to guarantee and keep the integrity of the work of the Canada Income Company, and to respect the confidentiality provisions of the Earnings Tax Act and the Excise Tax Act it administers, the CRA can not touch upon investigations that it might or might not be enterprise,” Murphy stated in an e mail.
In paperwork filed with the Ontario Superior Courtroom, the province alleges that “some or all of” Madan, his partner, Shalini, their grownup sons, Chinmaya and Ujjawal, and affiliate Vidhan Singh perpetrated “a large fraud” final spring to funnel Assist for Households funds to lots of of TD and Financial institution of Montreal accounts.
The federal government’s allegations haven’t been confirmed in courtroom.
There are seven Ontario Provincial Police detectives engaged on the case, however no felony costs have been laid.
Madan, who earned $176,608 a yr as a Ministry of Schooling data expertise supervisor, has amassed actual property and money in Canada and India value an estimated $28 million.
A authorities injunction has frozen these belongings, together with about $12.4 million in Indian financial institution accounts, a 30-unit pupil housing advanced in Waterloo that was lately listed on the market for $8 million, a $2.57-million seven-bedroom home in North York, six Toronto condominiums, and greater than $1 million in proceeds from the sale of a four-bedroom home.
He additionally owns two villas in Hyderabad, India.
Throughout cross-examination for the civil case earlier this month, Crown lawyer Christopher Wayland requested Madan, a landlord who operated a number of pc consulting corporations on the facet, about his taxes.
“Was the earnings understated?” requested Wayland.
“Sure,” replied Madan.
“By how a lot?” the Crown requested.
“Substantial quantities,” the ex-bureaucrat testified.
“Why did you not file tax returns on behalf of Intellisources Inc.?” requested Wayland, referring to one among Madan’s holding corporations.
“Simply to maintain it low profile,” he replied.
“Why did you need Intellisources Inc. to have a low profile?” the lawyer requested.
“As a result of they had been holding the Waterloo properties, proper?” stated Madan, pointing to the scholar residence advanced he listed on the market final fall for $8 million.
“So I believed that if I promote it, I will a minimum of convert the money and when the time comes for restitution, I pays it again.”
Pressed by Wayland on that time, he stated, “I wished to maintain it low profile … as a result of clearly then the entire secret fee factor would have been out.”
That’s a reference to the alleged kickback scheme that the federal government claims noticed thousands and thousands paid out beneath the desk for the awarding of data expertise work to contractors and subcontractors.
Madan, who recordsdata tax returns in Canada and India, stated “a minimum of 50 per cent of the contribution” that paid for the Waterloo advanced got here from the alleged commissions.
Whereas Madan has everlasting residency standing in Panama, a tax haven that has no extradition treaty with Canada, he doesn’t file earnings tax returns there.
by toronto star