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Big fine, jail time for failing to pay taxman

BRAMPTON, Ont. - An Ontario woman has been fined nearly $1.3 million and sentenced to four years in jail for failing to make payroll and income tax deducations to the federal taxman.

The Canada Revenue Agency says its three-year investigation found Deborah Dieckmann used a "complicated system" where her multiple staffing and payroll companies avoided roughly $6 million in deductions for temporary workers and other clients.

It says Dieckmann was convicted of seven counts of fraud over $5,000 in July, with court also finding she personally benefited from the diverted funds.

The tax agency says her father George Salmon has also been sentenced to two years less-a-day in jail and a near-$400,000 fine after he knowingly used Dieckmann's payroll companies to avoid making deductions on behalf of his employees.

It says Dieckmann will have to pay her fine within one year of her release from jail or be sent back in for an additional five consecutive years.

The CRA says Salmon — convicted of one count of fraud over $5,000 — must do the same or face another three years behind bars.

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