FORMl (Section 487 ofthe Criminal Code) INFORMATION TO OBTAIN A SEARCH WARRANT FORMUL E 1 (article 487 du Code criminel) DENONCIATION EN VUE D'OBTEN IR UN MANDAT DE PERQUIS ITON Canada, Province of Ontario Toronto Region Canada, Province de Region de This is the Information ofTetyana Sandford, of Toronto, Ontario, a public officer of the Canada Revenue Agency appointed or designated to administer or enforce a federal law, whose duties include the enforcement of the Income Tax Act and the Excise Tax Act, attached to the Toronto North-Barrie Tax Services Office, taken before me. Les presentes constituent la denonciation de , de , , fonctionnaire de l' Agence du revenu du Canada et fonctionnaire public nomme OU designe pour !'application OU !'execution d'une loi federale, et charge notamment de faire observer la Loi de l 'imp6t sur le revenu_et la Loi sur la taxe d'accise"'- attache au bureau des services fiscaux de , portee devant moi. OVERVIE W I am an investigator with the Canada Revenue Agency. The purpose ofthis information is to obtain a search warrant that will allow the Canada Revenue Agency to gather the evidence required to determine ifthe alleged offences were committed and if so, to prove the offences in court proceedings. During a compliance review of paper Tl General Income Tax and Benefit Returns, Zach Widdifield, a Resource Officer with the Special Assessment Program at the Sudbury Tax Centre identified 84 taxpayers who have claimed suspicious amounts for carrying charges and interest, other employment and medical expenses, public transit amounts, rental, business and professional losses, and donations for the 2012 to 2014 taxation years, inclusive. From February to July 2015, Zach Widdifield issued letters to these 84 taxpayers requesting inform.ation and supporting documentation for amounts claimed. Zach Widdifield noticed that all paper Tl General Income Tax and Benefit Returns reviewed have a comparable font and 'DT Max' printed on the back of the Tl General Income Tax and Benefit Returns. Zach Widdifield received responses from some of these 84 taxpayers and most replies showed the accountants name on the letters to be Mohamed Jesow and referred the file to the Canada Revenue Agency's Partnerships and Workload Development Section, Criminal Investigations Directorate . I reviewed the claims made by these 84 taxpayers and found that Canada Revenue Agency disallowed $1 ,044,100 of the $1,863,311 amount claimed. Two donations for the total of $4,752 were allowed after Canada Revenue Agency review and the remaining claims of $814,459 may not have been reviewed by Canada Revenue Agency, as a result of the self-reporting system . .The abovementioned events led to an ongoing investigation wherein I examined 414 paper Tl General Income Tax and Benefit Returns filed for 165 taxpayers for some or all of the 2012 to 2014 taxation years, inclusive. Three hundred and ninety seven (397) of the 414 Tl General Income Tax and Benefit Returns were prepared using what appeared to be the same software and software license number. The software name, 'DT Max' was printed on the bottom of the last page and 'Lie: 14309' on the top of each page of these Tl General Income Tax and Benefit Returns. The font of the printed Tl General Income Tax and Benefit Returns appears to be similar. The Tl General Income Tax and Benefit Returns for the 2012 taxation year containEF ILE number 19861 in the field 489 (EFILE number of the tax preparer). I found that EFILE number J9861 was assigned to Jesow Accounting & Tax Services, but later rejected, due to outstanding Goods and Services Tax/Harmonized Sales Tax Returns and failing to make arrangements with Collections Department regarding outstanding tax debts owed by the owner of Jesow's Accounting and Tax Services, Mohamed Ali Jesow. I identified additional 1,382 taxpayers, whose Tl General Income Tax and Benefit Returns for the 2012 taxation year contained EFILE number J9861 in the field 489 (EFILE number of the tax . preparer). I reviewed the same claims as Special Assessment Program for these 1,382 taxpayers and found that Canada Revenue Agency disallowed $2,036,752 of the $6,674,459 amount claimed l ,. on their paper-filed Tl General Income Tax and Benefit Returns. The remaining amount of $4,637,707 may not have been reviewed by Canada Revenue Agency, as a result of the selfreporting system. I interviewed 27 taxpayers, whose Tl General Income Tax and Benefit Returns were allegedly prepared by Mohamed Ali Jesow. Twenty four of the 27 taxpayers interviewed said that their Tl General Income Tax and Benefit Returns were prepared by Mohamed or Mohamed Jesow or Mohamed Ali Jesow or Jesow, or Jeso, or Mohamed Jissu. Three of the 27 taxpayers interviewed confirmed that all amounts claimed on their Tl General Income Tax and Benefit Returns are correct or reasonable. The remaining 24 taxpayers interviewed were not aware of some or all claims on their Tl General Income Tax and Benefit Returns . The total amount of the false claims for 27 taxpayers interviewed is believed at this time to be $361,670 for the 2012 to 2014 taxation years, inclusive. The things that we hope to seize will be used to determine if Mohamed Ali Jesow operating Jesow's Accounting and Tax Services participated or assisted in the filing of false informatio n on his clients' Tl General Income Tax and Benefit Returns resulting in reduction of taxes payable, to which they were not entitled and to determine ifhe wilfully understated their taxable income. THINGS TO BE SEARCHED FOR CHOSES A RECHER CHER I have reasonable grounds to believe that the described things, or some part of them, are: J'ai des motifs raisonnables de croire etje crois que certaines choses, a savoir: At the business premises of Mohamed Ali Jesow operating a tax preparation business under the name Jesow's Accounting and Tax Services located in the basement of 2192 Dundas Street West, Toronto, Ontario: (a) Originals and copies of correspondence, emails, documents, memoranda, contracts and agreements, and records pertaining to Mohamed Ali Jesow and/or Jesow's Accounting and Tax Services for the 2012 to 2014 taxation years, inclusive; (b) Bookkeeping records and copies thereof, including client lists, payment schedules, receipts or summaries for the fees charged, account summaries, invoices, expense receipts, vouchers, supporting documents and working papers pertaining to Mohamed Ali Jesow and/or Jesow's Accounting and Tax Services for the 2012 to 2014 taxation years, inclusive; (c) Originals and copies of clients' files, tax files and permanent files including working papers, and Tl General Income Tax and Benefit Returns with attached schedules, financial statements and supporting documentation, including correspondence, documents, memoranda, notes and information slips pertaining to the clients of Mohamed Ali Jesow and/or Jesow's Accounting and Tax Services for the 2012 to 2014 taxation years, inclusive; (d) Originals and copies of banking records, including cancelled cheques, debit and credit memoranda, cheque stubs, bank drafts, cheque registers, deposit books, deposit and withdrawal slips, automated teller machine transaction receipts, bank account statements, line of credit statements, credit card statements and loan statements pertaining to Mohamed Ali Jesow personally or jointly for the period from January 1, 2012 to December 31, 2014, inclusive; (e) Office machines that produce hardcopy printed documents including typewriters, photocopiers, laser printers, inkjet printers, facsimile terminals, scanners, etc., and stamp impression devices; (f) Operator's manuals and accessories pertaining to devices as outlined in paragraph (e) above; (g) Samples from devices referred to in paragraph (e) above; (h) Samples of handwriting of Mohamed Ali Jesow; Page 2 of31 (i) Electronic documents system containing computer programs or other data which may include: a computer system, storage device(s) or media capable of storing data, peripheral component s and devices that may be reasonably necessary for the proper operation of the electronic documents system containing any data pertaining to the items described in paragraphs (a) to (d) above in digital or electronic format; G) Documents/records that may be uniquely digital or electronic including but not limited to: e-mail (received or sent or in draft form); records (including deleted/hidden records, and metadata) content of past instant messaging or online chat conversations; internet artifacts or other electronic communica tion that are stored on or available to an electronic documents system or other digital device or storage media pertaining to the items described in paragraphs (a) to (d) above in digital or electronic format; (k) Data stored on any network, including the internet, and available to the computer system(s) that pertains to the items described in paragraphs (a) to (d) above; (1) Data relating to: i. 11 . Ownership, possession, access, use, or control of the electronic documents system and/or its data; The configuration of the electronic documents system and programs; (m)Items required to access, make intelligible, reproduce, transfer, communica te or receive items described in paragraphs (a) to (d) above, including: 1. IL Electronic documents system including hardware, equipment, peripheral components and devices; Computer programs, including operating systems and software; 111. Documenta tion and data, including manuals, operating instructions, licensing and operating data, encryption keys, whether preserved, stored or retained on any type of support, intelligible or not, inscribed by a person or an electronic documents system; iv. Documenta tion including written memory aids containing computer access information such as user identification and passwords, which may include but is not limited to, memos, sticky notes, address books and notepads; and v. Power adapters, chargers, cables, manuals, connectors and any other device or software designated to facilitate the functioning of an electronic documents system including subscriber identity modules (SIM cards) and other flash memory devices capable of storing data, documentation or data that may provide an indication of ownership, use, control, access and configuration of items described in paragraphs (i), G), and (k) above. relating to or necessary for the determinat ion of taxable income and tax payable required to be reported and paid by the clients of Mohamed Ali Jesow pursuant to the provisions of the Income Tax Act, R.S.C . 1985, Chapter 1 (5th supp.) as amended, for the taxation years from 2012 to 2014, inclusive, relatifs OU necessaires a la determination du revenu imposable et du montant d'imp6t payable devant etre declares et payes par en vertu des dispositions de la Loi de l 'imp6t sur le revenu, L.R.C. 1985, c.1 (Se suppl.) tel que modifie, pour les annees d'imposition a inclusivement, will afford evidence with respect to the commissio n of offences against the Income Tax Act, namely that: fourniront une preuve touchant la commissio n d'infractions a la Loi de l 'imp6t sur le revenu et ala Loi sur la taxe d 'accise, asavoir: Page 3 of31 OFFENCES INFRACTIONS Mohamed Ali Jesow has committed offences as defined by paragraph 239(1)(a) of the Income Tax Act, by making, participating, assenting to or acquiescing in the making of false or deceptive statements in a return, certificate, statement or answer filed or made as required by or under the Income Tax Act or a regulation for, or on behalf of his clients or clients of Jesow's Accounting and Tax Services, in the Tl General Income Tax and Benefit Returns for the 2012 to 2014 taxation years, inclusive. Mohamed Ali Jesow has committed offences as defined by paragraph 239(1)(d) of the Income Tax Act, by wilfully, in any manner, evading or attempting to evade compliance with the Income Tax Act or payment of taxes imposed by the Income Tax Act by claiming false expenses and/or deductions for or on behalf of his clients or clients of Jesow's Accounting and Tax Services, for the 2012 to 2014 taxation years, inclusive, thereby understating taxable income. And that I have reasonable grounds to believe and do believe that the said things, or some part of them, are at et que j 'ai des motifs raisonnables de croire que lesdites choses ou une partie d'entre elles se trouvent a ENDROIT(S) A PERQUISITION NER PLACE TO BE SEARCHED At the business premises of Mohamed Ali Jesow operating a tax preparation business under the name Jesow's Accounting and Tax Services located in the basement of2192 Dundas Street West, . Toronto, Ontario . GROUNDS FOR BELIEF MOTIFS RAISONNABLES My reasonable grounds to believe are based on the following: Mes motifs raisonnables de croire sont fondes sur ce qui suit: I have inquired into the financial affairs of the clients of Mohamed Ali Jesow and Mohamed Ali Jesow, operating a tax preparation business, Jesow's Accounting and Tax Services, located in the basement of 2192 Dundas Street West, Toronto, Ontario. J' ai conduit une enquete dans les affaires de tous situes au. AFFIANT 1. I am the investigator in charge of this investigation file and as such have full knowledge of the matters and facts contained herein except where indicated to be on belief and where so indicated, believe them to be true. I have been employed by the Canada Revenue Agency ("CRA") as an Investigator since March 30, 2015 . Prior to that, I worked in private practice as an Accounting Manager for approximately six years. SOURCES OF INFORMATION 2. The facts submitted to support this affidavit are based upon information collected by CRA public officers in the course of their duties in the administration of the Income Tax Act and Excise Tax Act. The main sources of information are working papers, copies of documents obtained during the review and notes taken by the public officers. I have read and reviewed all of the documents, working papers and notes referred to in this Information.To my knowledge, all the documents, working papers and notes are reliable. The officers are working in the Individual Returns and Compliance Division and the Criminal Investigations Division. 3. In particular, after the case was assigned to me, I held an extensive telephone interview on August 25, 2015 with Zach Widdifield ("Widdifield"), a Resource Officer with the Special Assessment Program ("SAP") of the Individual Returns and Compliance Division of the Sudbury Tax Centre and Tax · Services Office. The interview pertained to Widdifield's inquiries and the referral to Criminal Investigations concerning the paper-filed Tl General Income Tax and Benefit Returns ("Tl Returns'') that claimed allegedly false carrying charges and interest, other employment and medical expenses, public transit amounts, rental, business and professional losses, and donations. For further clarification, I also had numerous phone conversations with Widdifield on August 24, 2015, ) Page 4 of31 September 1, 2015, September 11, 2015, September 21, 2015, September 23, 2015, February 23, 2016, March 1, 2017, and March 9, 2017. 4. The electronically stored information, reviewed by me during the course of my investigation, and relied upon in this affidavit are from the following CRA electronic databases: (a) CRA's Random Access Personal Information Data ("RAPID") database, a computer information storage and retrieval system maintained by the CRA that pertains to current and historic income tax affairs of individuals and employers. The information stored on RAPID is made up of information from many systems including Business Number System ("BN system"), Payroll Deductions , Accounting and Collections system ("PAYDAC"), and Corporation Tax ("CORTAX") database. (b) CRA' s Automated Collections and Source Deductions Enforcement System (ACSES) is a computer information storage and retrieval system maintained by the CRA that pertains to collection of outstanding debt owed to the Crown. (c) CRA' s BN system is a computer information storage and retrieval system maintained by the CRA that pertains to the accounts of sole proprietors, partnerships and corporations. (d) CRA's Goods and Services Tax/Harmonized Sales Tax Returns Processing System (GHRAPS), a computer information storage and retrieval system maintained by the CRA that pertains to the accounts of Goods and Services TaxJHarmonized Sales Tax ("GST/HS T") registrants. (e) CRA's EFILE Inquiry System is a computer information storage and retrieval system maintained by the CRA that pertains to EFILE registrants' accounts. 5. Some of the facts laid out in this affidavit are sourced from Tl Returns and GST/HST Returns: (a) Each year Tl Returns are sent to the CRA by individuals declaring their income and calculating the corresponding income tax owing. The Canadian income tax system is based upon this annual system of self-reporting of income and the computation of the corresponding tax owing or refundable . These Tl Returns contain a significant amount of information including income earned, any applicable deductions, tax credits and tax payable or refundable. (b) GST/HST Returns are filed by GST/HST registrants monthly, quarterly or annually, depending on their situation. These GST/HST Returns include financial information such as taxable supplies, GST/HST collected, Input Tax Credits and net tax. 6. In computing income tax payable or refundable, taxpayers are, under certain circumstances and with specified supporting documents, able to deduct carrying charges and interest, other employment and medical expenses, public transit amounts, and donations, if they own and operate a business, include the net income or loss from their business operations or professional activities, and if they rent their property, include the net rental loss or income. There are specific requirements that need to be met in order for these amounts to be used to reduce or to increase taxable income. 7. EFILE is an automated system which allows qualified tax preparation service providers to electronically file their clients' Tl Returns and/or T2 Corporation Income Tax Returns ("T2 Returns") to the CRA directly from their tax preparation software. The CRA conducts an annual suitability screening process to verify the reliability of prospective and existing electronic filing applicants. Screening criteria of EFILE applicants include their compliance history with respect to all federal, provincial, and territorial tax Acts as well as their history of engagement in fraud, dishonesty, breach of trust, or other conduct of a disreputable nature. 8. In addition to filing returns electronically through the EFILE system, tax preparation service providers (and taxpayers), have the option of filing paper returns. Paper-returns can be prepared manually (using forms printed annually, and made available to taxpayers, by the CRA), or can be prepared using a computer program, printed, signed and mailed to the CRA or dropped off at tax services offices. Page 5 of31 9. The Ontario Ministry of Transportation ("MTO") maintains a vehicle transaction history system that contains information on a number of matters including vehicle registrations, owners and addresses. 10. Geowarehouse is a web-based, centralized property information database. It can be used to verify who owns a particular property, the type of ownership, property identification number, and the ownership history. 11. Information referred to in this affidavit also comes from a variety of other sources. This information is primarily used for identification purposes and comes from public sources such as the Internet or public databases. The information is kept in the ordinary course of business and as such I believe it to be true. INDIVIDUAL INVOLVED 12. Mohamed Ali Jesow ("Jesow") : (a) His date of birth is July 7, 1957. Sources: - RAPID database: September 14, 2016 -Adult Simplified Renewal Passport Application: May 21, 2013 (b) He filed as married to Leymoon Ahmed Hassan for the 2012 to 2015 taxation years, inclusive. Sources: - RAPID database: August 19, 2015 (2012 to 2014 taxation years, inclusive) - RAPID database: September 14, 2016 (2015 taxation year) - RAPID database: August 20, 2015 (Leymoon Ahmed Hassan full riame) (c) He was born in Mogadishu, Somalia. Source: Adult Simplified Renewal Passport Application: May 21 , 2013 (d) His mailing address had been listed in the CRA's database as 59100-2238 Dundas Street West, Toronto, Ontario, M6R 3A9 until March 31, 2016. Source: RAPID database: July 7, 2016 (e) His current mailing address is 2192 Dundas Street West, Toronto, Ontario; M6R 1X3. Source: Mohamed Jesow's Tl Return for 2015 dated March 16, 2016 . (f) The cheques issued to him for GST Credit ("GSTC") and Ontario Trillium Benefit ("OTB") have been sent to the postal code M6R 1X3 (option G.5 in RAPID only shows postal code), as referred to in subparagraph 12(e), since May, 2016. Source: RAPID database: September 14, 2016 (g) His current address is listed on MTO's database as 2192 Dundas Street West, Toronto, Ontario, M6R 1X3. Source: MTO ARIS search result: October 18, 2016 (h) His Ontario driver's license expired on July 7, 2016. Source: MTO ARIS search result: October 18, 2016 (i) There are currently no vehicles registered in his name. Source: MTO database: November 24, 2016 ,. ' / Page 6 of31 G) Jesow's Tl Returns for the taxation years 2012 to 2015, inclusive, are summarized below: Description 2015 2014 2013 2012 Total $22,540 $33,415 $45,275 $52,405 $153,635 Net business income 11,563 16,459 17,531 24,137 69,690 Total income 11,563 16,459 17,531 24,137 69,690 Net income 11,164 15 ,818 15,432 20,581 62,995 Taxable income 11 , 164 15,818 15,432 20,581 62,995 3,997 3,644 4,769 5,263 17,673 (1,521) (850) (430) 3 (2,798) $31,604 $31 ,623 $31,286 $29,940 0 0 1,405 2,535 3,940 2,235 1,855 554 6,467 11,111 13,170 14,700 7,200 7,200 42,270 6 6 12 12 0 0 4 Amount for children 0 0 8,936 Sources: RAPID database: August 19, 2015 (2012 to 2014 taxation years, inclusive) RAPID database: September 14, 2016 (2015 taxation year) Jesow's Tl Returns for 2012 to 2015, inclusive (rent information) 3 Gross business income Total federal non-refundab le tax credits Net federal tax assessed Final balance - debit Other information: Carrying charges & interest expense Medical expenses Rent paid Number of months resident in year Number of eligible children 6,573 15,509 (k) His 2013 Tl Return was reassessed by the CRA to disallow dependent children claim of $8,936, because he did not provide documents to support that his dependants resided in Canada during that year. Source: CRA letter: August 1, 2014 (1) The federal non-refundable tax credit for dependent children (line 367 on Tl Return) for 2012 was not re-assessed . He did not claim any amount for dependent children in 2014 and 2015. Sources: RAPID database: August 19, 2015 (2012 and 2014 taxation years) RAPID database: September 14, 2016 (2015 taxation year) (m) As of March 8, 2017, Jesow's Tl Returns were filed up to date. His Tl Return for the 2016 taxation year has not been filed, because this Tl Return is not due yet. Source: RAPID database: March 8, 2017 (n) As of March 8, 2017, there was a recoverable write off balance of $31 ,604 on Jesow's account. Source: ACSES database: March 8, 2017 (o) Jesow's Tl Returns for 2012 to 2015, inclusive, have 'DT Max' printed on the bottom of the last page and "Lie: 14309" on the top of each page of his Tl Returns. Jesow' s Tl Return for 2012 contains number J9861 in the field 489 "EFILE number" of the tax preparer. Source: Jesow's Tl Returns for 2012 to 2015, inclusive (p) The gross business income reported on Jesow's Tl Returns for the 2012 to 2015 taxation years, inclusive, is from Jesow's Accounting and Tax Services. Source: Jesow's Form 2125 (Statements of Business or Professional Activities) attached to his Tl Returns for 2012 to 2015, inclusive 13. Jesow is the sole proprietor of Jesow's Accounting & Tax Services. His business name was registered on March 18, 2011. The principal business activity of Jesow' s Accounting & Tax Services is bookkeeping and tax services. Source: Business Names Report by Province of Ontario Ministry of Government Services: August 26, 2015 Page 7 of31 (a) Jesow's GST/HST account 89794 9368 RTOOO l was registered on June 14, 1995. Source: GHRAPS database: October 17, 2016 (b) His business address is 2192 Dundas Street West, Toronto, Ontario, M6R 1X3 on hfs Statements of Business or Professional Activities for 2014 and 2015. Source: - Jesow's Statement of Business or Professional Activities for 2014 and 2015 (c) Jesow's Accounting & Tax Services GST/HST Returns for the 2012 to 2015 taxation years, inclusive, are summarized below: Period End 2015-12-31 2014-12-31 2013-12-31 2012-12-31 Sales $48,352 GST/HST ITC $4,072 $4,407 Net Tax Comment Return has not been filed Return has not been filed Return has not been filed -$335 Sources: GHRAPS database: October 17, 2016 (taxation years 2013 to 2015, inclusive) Jesow's Accounting & Tax Services GST/HST Return for 2012 (d) Jesow's request to cancel his GST/HST registration was approved in 2013 . Source: Pending Cancellation Notice dated September 27, 2013 (e) The current status of Jesow's GST/HST account is 'Pending Closure' effective December 31, 2012. Source: BN SYSTEM database: October 17, 2016 THE SAP CIVIL REVIEW 14. Widdifield referred the file to the CRA's Partnerships and Workload Development Section, Criminal Investigations Directorate ("CID HQ") on August 12, 2015. I reviewed the file and examined the spreadsheet prepared by Widdifield and attached to the referral. The spreadsheet prepared by Widdifield contains information from the Tl Returns filed by 84 taxpayers for the 2014 taxation year. Source: Tl34 "Referral to the Criminal Investigations Division" (Tl34) sent by Widdifield: August 12, 2015 15. After the referral, I received from Widdifield the responses of 26 taxpayers to 85 SAP letters issued between February and July 2015. One taxpayer, who responded to SAP, was not included in the spreadsheet prepared by Widdifield. The total number of taxpayers reviewed by SAP, including the taxpayer missing from the spreadsheet prepared by Widdifield, is 85. SAP reviewed paper Tl Returns and RAPID information for these 85 taxpayers for the 2012 to 2014 taxation years, inclusive: Tl Returns for 48 taxpayers for the taxation year 2014, Tl Returns of 17 taxpayers for 2013 and 2014, Tl Returns of two taxpayers for 2012 and 2014, and Tl Returns of .18 taxpayers for the 2012 to 2014 taxation years, inclusive. Source: Investigator's working papers: Table attached to SAP referral with CID questions to SAP and taxpayers' responses to SAP 16. On August 24, 2015, August 25, 2015, September 1, 2015, September 11, 2015, September 21, 2015, September 23, 2015, and February 23, 2016 I discussed with Widdifield his referral to CID and Widdifield provided the following information: (a) SAP ' s mandate was to identify suspicious activities and trends on Tl Returns that indicate significant risk of loss of revenue to the Crown and take appropriate actions to address these activities. (b) When a suspicious activity or trend is identified, a specific clue can be set up in the system to flag the Tl Returns . Headquarters ("HQ") can set up a clue SG221 or SAP can request HQ to set up a clue SG998 to select the Tl Returns to forward to SAP for review. Page 8 of31 (c) On March 4, 2014, Widdifield set up a clue (SG998) in the system to select Tl Returns for review, where line 221 showing the amounts from $901 to $905, because he noticed that these amounts were common on paper Tl Returns. This clue had remained in effect at the time of the referral. (d) On March 20, 2015, Widdifield requested to set up another clue (SG998) in the system to select Tl Returns for review, where line 221 showing $1,025 or $1,035, because he noticed that these amounts were common on about five paper Tl Returns he reviewed for 2014. (e) As a result of these clues, as referred to in subparagraph l 6(b), 16(c), and 16(d), Widdifield received and reviewed paper Tl Returns of 84 taxpayers for the 2014 taxation year. Source for (a) to (e): Widdifield's Witness Statement: September 10, 2015 (f) Widdifield also reviewed the information for some of these 84 taxpayers for some or all of the 2012 and 2013 taxation years. Som-ce: Interview Questionnaire of Widdifield: September 10, 2015 (g) Widdifield sent letters to these 84 taxpayers, as referred to in paragraph 14, for some or all of the 2012, 2013, and 2014 taxation years requesting information on carrying charges and interest, employment and medical expenses, public transportation credit, rental, business and professional losses, and donations, if claimed. The first page of the letter had a section to be completed by the taxpayers for Tl Returns filed by a representative, including name of representative, name ofrepresentative's business, address and phone number of the business. Source: Widdifield's Witness Statement: September 10, 2015 Spreadsheet attached to the Widdifield's referral (column 'Year') Investigator's working papers: Tl Returns - Lines/Fields (h) Widdifield received responses to the SAP letters from some taxpayers, but put them aside for-a couple of months until he got time to review them. Widdifield does not remember when he started to look at the responses and how many responses had arrived at that point. Source: T2020: September 23, 2015 (i) Widdifield noticed that "most replies showed the accountants name on the letters to.be Mohamed Jesow in which writing seemed to be similar." The questionnaires fon business and rental losses also had similar handwriting. He also noticed that the paper Tl Returns had a comparable font and showed DT Max on the bottom right on the back of the Tl Returns. Source: Widdifield's T134 G) After reviewing about ten taxpayers' responses, Widdifield thought about referring this case to CID. He does not remember which ten responses he reviewed first. For this reason, I will not be relying on information contained in the responses to SAP from 26 of the 85 taxpayers and exclude the taxpayer identified from the response to SAP from my investigation, as referred to in subparagraph 15. Source: T2020: September 21, 2015 (k) On August 12, 2015, Widdifield submitted a Tl34 Referral for Jesowto the CRA's CID HQ. Som-ce: Email T134 - Referral to CID 17. On September 11, 2015, I spoke to Jennifer Van Ek ("Van Ek"), Senior Programs Officer, Business Compliance Directorate/Individual Credit Determination Assessment Verification Division /Special Assessment and Supplementary Examination Section ("CVB/ICDAVD/SASES"). According to Van Ek, the RAPID database contains clues which is logic programmed into the system to select Tl Returns for review. The clue for line 221 of Tl Return 'carrying charges and interest expenses' ("line 221 ")has been programmed to select Tl Returns where the amount on line 221 seems incorrect; such as Tl Returns with amount on line 221 but no investment income reported. Source: T2020: September 11, 2015 / Page 9 of31 THE INVESTIGATION 18. On August 19, 2015, I reviewed information in RAPID for Jesow and noted that his mailing address on his Tl Returns for the 2014 taxation year is 2192 Dundas Street West, Toronto, ON M6R 1X3. Source: RAPID database: August 19, 2015 19. On August 26, 2015, I received the result of a Geowarehouse search, which showed that the owners of the building located at 2192 Dundas Street West, Toronto were Maria Toste ~d Adalberto Toste. Source: Geowarehouse Online Property Details: August 26, 2015 20. On August 28, 2015, I noticed that information I pulled from RAPID for Tl Returns, which include claims disallowed by CRA for the 2012 taxation year, contain "Prepare NBR" (preparer EFILE number) J9861 on 24 of the 30 Tl Returns of the taxpayers, as referred to in paragraph 14. Source: Investigator's working papers: Summary of Reported and Disallowed Amnunts (84 taxpayers) 21. On August 31, 2015, I called EFILE Helpdesk and spoke to Laura Derkacz, EFILE Officer at Sudbury TSO, who confirmed that the EFILE number J9861 belongs to Mohamed Jesow. Source: · T2020: August 31, 2015 22. On September 4, 2015, I received a response from EFILE that the EFILE account J9861 was never certified for EFILE and does not have any Tl Returns' transmissions. Source: Emails: September 4, 2015 23. On September 9 and September 11, 2015, I received paper Tl Returns in possession of CRA for the taxpayers included in the referral, as referred to in paragraph 14, and started to review them. Between September 15, 2015 and September 16, 2015, during my review of paper Tl Returns, I noticed that 154 of the 159 Tl Returns have the printed line on the top of each page of the Tl Return starting with identical letters and number "Lie: 14309" and four or five-digit number at the end of the line, which appears to be unique for each taxpayer. All Tl Returns with "Lie: 14309" also have "DT Max" and two-digit number, dot, and other two-digit number (example, "DT Max 18.12") printed on the bottom of the last page of the Tl Return. Source: Taxpayers' Tl Returns reviewed by me in September, 2015 24. On September 17, 2015, I reviewed the response from EFILE and the copies of the documents for EFILE account number J9861, as follows : (a) The EFILE account J9861 was created for Jesow's Accounting & Tax Services on February 11, 2013; (b) According to the EFILE Suitability Screening New Account Questions, the person who contacted EFILE on February 25, 2013 was Mohamed; his experience is 20 years tax, paper filing; he is using or planning on using DT Max software; he would be involved in the preparation and transmission of the tax returns himself; he would be meeting his clients in the office; and he expects to have 800 Tl Returns and five T2 Returns; (c) The EFILE account J9861 was conditionally rejected on March 16, 2013 and the letter dated March 19, 2013 was sent to Mohamed Jesow informing him that he has not met the suitability screening criteria, due to failing to make suitable payment arrangements with CRA Collections Department regarding his outstanding debts and outstanding GST/HST Returns for Jesow's Accounting & Tax Services for the 2008 to 2011 taxation years, inclusive; (d) Jesow did not address the outstanding issues and EFILE account J9861 was suspended. The CRA letter dated October 8, 2013 to Mohamed Jesow informed him ofthis decision. Source for (a) to (d): Email: September 4, 2015 Email and email attachment: September 11, 2015 Page 10 of31 ,/'.; .· 25. On September 17, 2015, I performed an internet search for "DT Max software" and found that DT Max is the tax software for professionals provided by Thomson Reuters: Sources: Internet search- www.drtax.ca: September 17, 2015 Internet search - www.drtax.ca: October 6, 2015 26. Thomson Reuters provides 12months license subscription for DT Max software, which is nontransferable, one license per location per EFILE number. Source: Thomson Reuters DT Tax and Accounting Inc. Professional Products License Agreement v.7/20 14 27. Between August 28, 2015 and January 22, 2016, I reviewed RAPID and prepared various reconciliations. I reviewed and summarized claims made by 84 taxpayers, as referred to in paragraph 14, for the 2012 to 2014 taxation years, inclusive. I also reviewed and summarized the amounts disallowed by CRA. The total number of Tl Returns filed by the 84 taxpayers is 249 for the 2012 to 2014 taxation years, inclusive. Two hundred and four (204) of the 249 T l Returns were paper Tl Returns: 84 Tl Returns for 2014, 63 for 2013 , and 57 for the 2012 taxation year. The remaining 45 Tl Returns were filed by different filing methods: four Tl Returns were net filed, 37 efiled, and four were filed as paper Tl Returns with two-dimensional bar codes. The amounts claimed by the taxpayers, disallowed and processed by CRA for the 84 taxpayers on their paper-filed Tl Returns are as follows: Claims/Expenses Net Business Loss Net Rental Loss Net Professional Loss ' Carrying charges and interest expenses' ' Other employment expenses' Medical expenses Public transit amount Donations Total Estimated Federal Tax, 15 % Total for 2012-2014 Processed - Not Allowed Claimed Disallowed Reviewed Verified $235,995 $223,680 $12,315 $0 32,245 23 ,269 8,976 0 30,511 30,511 0 0 163,042 553,579 508,723 159,603 179,613 $1,863,311 $279,497 142,522 467,723 79,439 25,877 . 51 ,079 $1,044,100 $156,615 20,520 85,856 429,284 133,726 123,782 $814,459 $122,169 0 0 0 0 4,752 $4,752 $713 Source: Investigator's working papers: Summary of Reported and Disallowed Amounts (84 taxpayers) (a) The claims and expenses of $814,459 may not have been reviewed, as SAP usually review only common claims/expenses, such as 'other employment expenses' and business and rental losses and very little of medical expenses and public transit amounts. Some claims may not have been reviewed due to time constraints. Source: T2020 - phone call with Widdifield: February 23, 2016 (b) Two donation claims of $1,911 and $2,841 for the total amount of $4,752 for the 2014 taxation year were allowed after SAP reviewed the information and documents provided by the taxpayers. Sources: Spreadsheet attached to the Widdifield's referral RAPID database: August 28, 2015 28. On October 15, 2015, I called Thomson Reuters, the software provider of 'DTMax' tax preparation software, as referred to in paragraph 25, and spoke to Linda Perrault, customer service supervisor, and Kathy Spyropoulos, Director of User Services, who provided the following information: (a) The software license of DT Max can only be purchased through Thomson Reuters. (b) The company requires EFILE agent number in order to sell the licence. Page II of31 (c) The license is one per location. Source for (a) to (c): T2020 - phone call with Linda Perrault and Kathy Spyropoulos: October 15, 2015 29. On October 27, 2015, I reviewed RAPID information for the spouses of the 84 taxpayers included in the referral and found additional six taxpayers, who reported similar claims and expenses on their Tl Returns and five of the six taxpayers have line 489 showing J9861 on their 2012 Tl Returns. Sources: Investigator's working papers: Additional Taxpayers Identified Investigator' s working papers: Summary of Reported and Disallowed Amounts (91 taxpayers) 30. Between October and December, 2015, I performed detailed review of all available paper-filed Tl Returns, which amounted to 148 paper-filed Tl Returns of 64 of the 84 taxpayers reviewed by SAP, as referred to in paragraph 14, for the 2012 to 2014 taxation years, inclusive. One hundred and forty five (145) of the 148 Tl Returns have "DT Max" printed on the last page and license number 14309 along with the four to five-digit number, which appeared to be unique for each taxpayer, on each page of the Tl Return. The font of the printed Tl Returns appears to be similar. During my review of these 145 Tl Returns: 40 for the 2012 taxation year, 44 for 2013, and 61 for 2014, I noted the following: (a) Thirty five of 40 Tl Returns for the 2012 taxation year include EFILE number J986 1 in field 489. The remaining five Tl Returns were .filed late: in 2014 and 2015 . (b) ' Carrying charges and interest expenses' on line 221 were claimed on 117 of the 145 Tl Returns. The note for the amount on the line 221 on Schedule 4 'Statement of Investment Income' is the same on all 117 Tl Returns: "Interest on money borrowed to earn investment inc". (c) Donations were claimed on 101 of the 145 Tl Returns. The charity receipts were attached to three of the 101 Tl Returns. (d) Medical expenses were claimed on 107 of the 145 Tl Returns. The most common description for medical expenses is "prs med". (e) Business, professional, and rental losses were claimed on 31 of the 145 Tl Returns. The most significant business expenses on the Statements of Business or Professional Activities include office expenses, supplies, telephone, and utilities, insurance, travel, motor vehicle expenses, and other expenses - gasoline. (f) Employment expenses were claimed on 84 of the 145 Tl Returns. The employment expenses included mostly parking, supplies, and travel expenses. Two Statements of Employment Expenses were blank; one was not attached to the Tl Return; another was missing the first page with the breakdown of the employment expenses; three included only supplies expense of $4,440, $6,576, and $10,803, respectively. (g) Ten Tl Returns for the residents of Alberta include an amount on the line 255 'Northern resident deductions'. The schedule T2222 'Northern Residents Deductions' shows Zone B, Fort McMurray, AB on nine of the ten Tl Returns and one Tl Return shows Zone A, Fort McMurray, AB. (h) Spouse or common-law partner amount was claimed, but no name or SIN of the spouse was provided on Tl Returns of 12 taxpayers. As per RAPID and responses to the CRA enquiries, six of the 12 taxpayers claimed spouse or common-law partner amount for their non-resident spouses. One taxpayer had a marital status as single, but the full spouse or common-law partner amount was claimed on his 2013 Tl Return. Source for (a) to (h): Investigator' s working papers: Tl Returns Review ·/ /·' ;. Page 12 of31 . .. 31. On December 23, 2015, I retrieved information for one additional taxpayer, whose Tl Return was prepared by Jesow, Arianne Pinedo Alvarez. The taxpayer's sister, Adriana Pinedo Alvarez, who was interviewed by me on November 10, 2015, provided this name. Source: Interview Questionnaire of Adriana Pinedo Alvarez: November 10, 2015 32. On February 18, 2016, I reviewed RAPID to verify if any amounts disallowed or re-assessed were disputed by any of the identified taxpayers, as referred to in paragraphs 14, 29, and 31 . I found that 5 of these taxpayers are in dispute for the total of $22,370, not including the interest on outstanding tax debt for the 2012 to 2014 taxation years, inclusive. Source: Investigator's working papers: Summary of Reported and Disallowed Amounts (91 taxpayers) 33. On January 13, 2016, I received a file with the list of taxpayers, whose 2012 Tl Returns .have line 489show!ng19861. I reviewed and compared the list with the existing list of 91 taxpayers, as referred to in paragraphs 14, 29, and 31. I identified 1,382 additional taxpayers whose 2012 Tl Returns were allegedly prepared by Jesow. I retrieved Tl Returns information for these taxpayers from RAPID. The total number of the taxpayers identified at this time was 1,473 . Source: Email from Jennie-lee Kluke from Criminal Investigations Directorate, with attached file "AR-35654.xlsx": January 13, 2016 34. I reviewed information for disallowed and re-assessed claims by CRA in RAPID for 1,382 taxpayers identified. I summarized the claims of the 1,382 taxpayers on their paper-filed Tl Returns, as follows: Claims/Expenses Total for 2012-2014 Disallowed by Processed by Claimed $1,084,099 395,095 87,482 CRA CRA $617,659 80,273 39,822 $466,440 314,822 47,660 'Carrying charges and interest expenses' 365,071 113,513 251,558 'Other employment expenses' Medical expenses Public transit amount Donations Sub-total Estimated Federal Tax, 15% 1,163,465 2,264,650 856,837 457,760 $6,674,459 $1,001,169 530,361 433,565 121,166 100,393 $2,036,752 $305,513 Net Business Loss Net Rental Loss Net Professional Loss 633,104 1,831,085 735,671 357,367 $4,637,707 $695,656 ' As a result of the self-reporting system, the 'Claims/Expenses' 'Processed by CRA' may not have been reviewed. Source: Investigator's working papers: Summary of Reported and Disallowed Amounts (1,382 taxpayers) J 35. On February 25, 2016, I examined the copies of the cheques issued to Jesow for GSTC and OTB in 201 5 calendar year, which were faxed to me by Cheque Redemption Control Directorate of CRA ("CRCD"). I noted the branch number 82172 and bank number 002 on the back of the cheques. Source: Cheques issued to Jesow- Cheque Enquiry to CRCD: October 9, 2015 36. On February 25, 2016, I checked the Financial Institution Branch Directory for the Banks Number List. The bank and branch number combination belongs to the branch of Bank of Nova Scotia located at 1709 Bloor Street West, Toronto. Source: Internet search-www.payments.ca: re-printed on December 16, 2016 Page 13 of31 ·/ 37. On February 25, 2016, I conducted a Google search of the branch address, as referred to in paragraph 36, and found that the branch is located within a walking distance from Jesow's office at 2192 Dundas Street West, Toronto. Source: Google search: February 25, 2016 38. On March 7, 2016, I received and examined additional copies of the OTB and GSTC cheques issued to Jesow. The same bank account number was written on the back of six of the eight cheques received. The branch and bank number of Bank of Nova Scotia, as referred to in subparagraphs 35 and 36, is visible on the bank stamp on the back of six cheques. Source: Cheques issued to Jesow- Cheque Enquiry: March 7, 2016 39. On April 4, 2016, following a letter requesting voluntary cooperation to Adalberto Toste, owner of 2192 Dundas Street West, Toronto, as referred to in paragraph 19, I received a call from a man who introduced himself as the son of Adalberto Toste, Rui Toste. Rui Toste provided the following information: (a) The address of his father's rental property is 2192 Dundas Street West, Toronto. (b) There are three tenants at this property. All tenants have been there long time and they are all month-to-month tenants now. The first floor store with the basement is rented by Ismail, who sub-rents the basement to a Somalian church. (c) The apartment # 1 and # 2 are separate from the store and the basement. The basement has two entrances: one in the front of the building and one door at the back of the store leading to the basement. Source for (a) to (c): T2020: April 4, 2016 40. On April 18, 2016, I reviewed Tl Returns and the Appeals file pertaining to Bisharo Ahmed, one of the taxpayers identified, as referred to in paragraph 33. The appeal records included the following information: · (a) Records provided to Appeals by Bisharo Ahmed, including "Executive summary" and "Tax return Summary" with client number 15789, "Keyword data" with accountant name, JESO, and "Lie: 14309 .... #15789" printed on the top of each page, and consent form T1013 E (14) Authorizing or Cancelling a Representative with Mohamed Ali Jesow, as representative for 2011, 2012, and 2013 taxation years. Jesow's name of business on the form is Jesow's Accounting and Tax Services, telephone number is (416) 588-8774. Source: Appeals file pertaining to Bisharo Ahmed: 'Objection - Income Tax Act' form received by Appeals on March 9, 2015 (b) According to the Report on Objection of the appeals officer, Sohila Sherbafi for the 2013 taxation year: "During the communication with the taxpayer, the taxpayer confirmed that the above noted expenses (employment expenses, 'carrying charges and interest expenses' and donation) were claimed by her accountant and she never claimed any employment expense nor she owns any business. She also admitted that she did not make any donation either." Under the 'Review of Potential Risk Associated', Sohila Sherbafi noted: "The taxpayer confirmed that she did not claim any expenses in her 2011 and 2012 income tax returns either. The taxpayer advised that there are the same cases with other people's income tax returns in her community who used the services of the same accountant." Source: Appeals file pertaining to Bisharo Ahmed: 'Objection - Income Tax Act' form received by Appeals on March 9,2015 Page 14 of31 (c) Bisharo Ahmed's Tl Returns for 2012 to 2014, inclusive, have "Lie: 14309 .... #15789" printed on the top of each page and "DT Max" printed on the bottom of the last page of her Tl Returns. The number 15789 on each page of her Tl Returns is the same number as a client number printed on "Tax return Summary" and "Executive summary" of her Tl Returns, as referred to in subparagraph 40(a). Her 2012 Tl Return contains J9861 on the line 489 "EFILE number". Source: Tl Returns ofBisharo Ahmed for: 2012 dated May 27, 2013; 2013 dated June 23, 2014; and 2014 dated April 28,2015 41. On April 22, 2016, I reviewed Tl Returns and the Appeals file pertaining to Daniel Aboneh, one of the identified taxpayers, as referred to in paragraph 33 . The appeal records included the following information: (a) T2020 of the appeals officer, Marko Dzudovich, entry date - November 20, 2014: "The new address of the accountant is basement - 2192 Dundas Street West, Toronto M6R 1X3. Phone number is (416) 588-8774 and accountant's name is Mohamed Ali Jesow." Source: Appeals file pertaining to Daniel Aboneh: 'Objection - Income Tax Act' forms received by Appeals on February 27, 2014 and May 14, 2014 · (b) The copy of the form Tl 013 Authorizing or Cancelling a Representative was attached to the appeal records with Moham~d Ali Jesow, as representative for 2010, 2011, and 2012 taxation years. Jesow's name of business on the form is "Jesow's Accounting ad Tax Services", telephone number is (416) 588-8774. Source: . Appeals file pertaining to Daniel Aboneh: 'Objection- Income Tax Act' forms received by Appeals on February 27, 2014 and May 14, 2014 (c) Daniel Aboneh's Tl Returns for 2012 to 2014, inclusive, have "Lie: 14309" printed on the top of each page and "DT Max" printed on the bottom of the last page of his Tl Returns. His 2012 Tl Return contains J9861 on line 489 "EFILE number". Source: Tl Returns of Daniel Aboneh for: 2012 dated February 20, 2013; and 2013 -2014 dated May 21, 2015 42. On May 10, 2016, I reviewed and analyzed line 221 'carrying charges and interest expenses' for 1,473 taxpayers, whose Tl Returns were allegedly prepared by Jesow, as referred to in paragraphs 14, 29, 31, and 33. The most common amounts reported by number of taxpayers by year are as follows: Amount 2014 2013 2012 TOTAL $902 $903 $905 $1,025 $1,03 5 3 14 0 31 42 11 28 0 23 72 27 85 -14 74 7 41 127 14 128 121 Subtotal 90 134 207 431 Total number of taxpayers who reported amount on line 221 143 166 253 562 Source: investigator's working papers: Line 221 - Most common amounts reported by number of taxpayers by year: May 10, 2016 Voluntary Interviews of Taxpayers/Witnesses 43. In a course of my investigation, I contacted 109 taxpayers, whose T 1 Returns were allegedly prepared by Jesow, and arranged 27 interviews. Source: Investigator's working papers: Number of Taxpayers Contacted to Set Up an Interview: March 10, 2017 Page 15 of31 44. Between October 26, 2015 and May 31, 2016, I interviewed 27 taxpayers, whose Tl Returns were allegedly prepared by Jesow. The names of these individuals are as follows: Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Name Interview Date Manglibe Badie Ahmed Idris Omar AbukarMNur . Million Mekonnen Elizabeth Nabagou Tiwome-Badie Nuno Fortes Ritah Nakirya Adriana Pinedo Alvarez Hariharan Thiyagarajan Piera Morelli Yonas Tesema Neil Johnson Aly Keita Akberet Amne Michael Mulugeta Lidya Melaku Aderonke Akintunde Mathew Furtado Solomon Gabretsadik Christian Lukadi Geoffrey Kizito Angela Sterread Ebrahim Farid Haile Gidey Jamal Reeisi Gallican Gasana Korsah Kontoh October 26, 2015 October 26, 2015 October 26, 2015 November 2, 2015 November 3, 2015 November 4, 2015 November 9, 2015 November 10, 2015 November 10, 2015 December 2, 2015 December 8, 2015 December 10, 2015 December 11 , 2015 March 23, 2016 March 31, 20 16 April 5, 2016 April 13, 2016 April 26, 2016 May 12, 2016 May 13, 2016 May 16, 2016 May 18, 2016 May 19, 2016 May 20, 2016 May 25, 2016 May 30, 2016 May 31, 2016 These 27 taxpayers filed their paper Tl Returns claiming some or all of the fo llowing expenses and losses as follows: Type of Claim 'Carrying charges and interest expenses' 'Other employment expenses' Medical expenses Donations Net business loss Net rental loss Net professional loss · Public transit amount Total 2014 2013 2012 Total $14,411 43,642 47,550 27,346 26,667 48,868 2,598 19,197 $230,279 $15,797 80,365 69,283 23 ,695 57,734 41 ,690 19,449 14,648 $322,661 $11 ,455 40,608 47,394 23 ,811 57,581 41,313 14,878 16,547 $253,587 $41 ,663 164,615 164,227 74,852 141,982 131,871 36,925 50,392 $806,527 Source: Investigator's working papers: Paper Tl Returns Information for 2012-2014 for the Taxpayers Interviewed by CID: June 17, 20 16 45 . A summary of the interviews conducted with 27 taxpayers between October 26, 2015 and May 31, 2016, as referred to in paragraph 44, is as follows: (a) Twenty three of the 27 taxpayers interviewed said that their Tl Returns were prepared by Mohamed or Mohamed Jesow or Mohamed Ali Jesow or Jesow Mohamed or Jesow or Jeso for one year, two years, or all three years for 2012, 2013, and/or 2014. One taxpayer, Christian Lukadi, said his Tl Returns were prepared by Mohamed Jissu, but he was not sure about the spelling of Mohamed's last name. One taxpayers was unable to provide the name of the individual who prepared his Tl Return, but his spouse, who was also interviewed, said that her and her spouse's Tl Page 16 of31 ,/ Returns were prepared by Mohamed, whose office is located in the basement of 2192 Dundas Street West, Toronto. I believe that all these names refer to Jesow. One taxpayer, Neil Johnson, . said his Tl Returns were prepared by Seyad. Another taxpayers did not know who prepared his Tl Returns. The Tl Returns of these 27 taxpayers contain "DT Max" on the last page and "Lie: 14309" on the top of each page of Tl Returns, except two Tl Returns, which the taxpayers confirmed were filed electronically. (b) Twenty three of the 27 taxpayers interviewed provided a similar general physical description of the individual who prepared their Tl Returns. (c) Thirteen of the 27 taxpayers said that Jesow was recommended to them by their spouse, friends, or a co-worker. Four taxpayers did not remember who recommended Jesow to them. Two taxpayers said that they met Jesow and he gave them his business card. One taxpayer, Ritah Nakirya, said that she received Jesow's flyer when she lived in the apartment building on Sumach Street. One taxpayer, Akberet Amne, said that she saw Jesow's advertisement in a Somalian newspaper. Three taxpayers said that they were walking by and saw Jesow's business sign on the street. One taxpayer, Abukar Nur, said that he used to live in the area where Jesow's business was located. (d) Five of the 27 taxpayers said that they have known Jesow for seven or more years, 13 taxpayers between three and six years, and six taxpayers for one or two years. One taxpayer, Angela Sterread, said that she met Jesow many years ago and another taxpayer, Mathew Furtado, said that he never met the tax preparer. (e) Twenty two of the 23 taxpayers, whose Tl Returns contain 'carrying charges and interest . expenses', said that they did not have any 'carrying charges and interest expenses'. One taxpayer, Angela Sterread, said that she paid for investment advice. (f) Nine of the 16 taxpayers, whose Tl Returns include 'other employment expenses', said that they did not have any employment expenses. The remaining seven of the 16 taxpayers said the following: L Three taxpayers said that their employer did not provide form T2200, Declaration of Conditions of Employment, to them. One of the three taxpayers, Ritah Nakirya, said that she asked her employer for form T2200 after she received a letter from CRA. She did not ask Jesow to claim any employment expenses and he did not ask her if she had any employment expenses to claim. ii. One taxpayer, Aly Keita, said that he had employment expenses, which included travel and internet, but the amounts were not significant. He did not know that the 'other employment expenses' of $8,258 were claimed on his Tl Return for 2014 and $4,227 for 2013. ui. Three taxpayers claimed expenses, which are not eligible for employment expenses claim, such as uniforms, work shoes, hand lotion, parking and lunches at work. One of the three taxpayers, Geoffrey Kizito, said that Jesow asked him whether or not he pays for parking. He showed Jesow his pay stubs with parking deduction of $130 a month and receipts for gas and uniforms. iv. Two taxpayers got reimbursement of travel expenses from their employers. Both.taxpayers did not remember the amount they spent on employment expenses, they did not keep any receipts, and confirmed that the claim for employment expenses on their Tl Returns sounds correct. v. One taxpayer, Gallican Gasana, said that he had employment expenses, which were not reimbursed by his employer, including car expenses, hotel, and meals, but he did not buy any supplies for his work and he did not know that supplies of $2,284 were claimed as part of his employment expenses on his Tl Return for 2013 and $2,540 for 2012. vi. I did not ask one taxpayer, Neil Johnson, about this claim. ,/./ Page 17 of31 (g) Eight of the 14 taxpayers, whose Tl Returns include public transit amounts, confirmed that they used public transit and purchased monthly or weekly passes. One of the eight taxpayers, Aderonke Akintunde, said that she told Jesow that she also took a taxi to go to clients three to four times a year and he included her taxi fees in the public transit amount on her Tl Returns. Five taxpayers said that they did not use·public transit or only used it occasionally. I did not ask one taxpayer, Yonas Tesema, about this claim. (h) Twenty five taxpayers, whose Tl Returns include medical expenses, said the following: L Nine taxpayers said that they did not have any medical expenses and one taxpayer said that his insurance paid for all his medical expenses. 11. Five taxpayers provided the amounts for their medical expense, which were significantly less than the medical expenses claimed on their Tl Returns. 111. One taxpayer confirmed that medical claims on his Tl Returns are correct. Another taxpayer's medical expenses matched insurance premiums paid by her employer (box 85 on her T4). iv. Five taxpayers did not remember how much they spent on medical expenses and did not keep their receipts. Three of the five had medical/dental insurance coverage at work. v. One taxpayer said that he usually spends between $3,000 and $4,000 a year for medical expenses, he has medical and dental insurance coverage, he did not keep the receipts, and he provided the receipts to Jesow to calculate his medical expenses claim. The medical expenses on his Tl Returns are: $5,085 in 2014, $5,303 in 2013, and $2,550 in 2012. vi. One taxpayer provided the amounts she spent in 2012 to 2014, inclusive. The medical expenses shown on her Tl Returns for 2014 are $700 higher, 20i3 $100 lower, and 2012 $700 higher than the amounts she provided. vii. One taxpayer said that he spent $300 a month for seven months a year on medication; the medical expenses on his Tl Returns are: $2,232 in 2014, $3,323 in 2013, and $2,954 in 2012. (i) Twenty taxpayers, whose Tl Returns contain donations, said the following: L IL 111. Six confirmed that the donation amounts claimed on their Tl Returns are correct. One of the six taxpayers, Aderonke Akintunde, said that Jesow sometimes made copies of her donation receipts. Six taxpayers told me the amounts they donated, which were significantly less than the donation amounts claimed on their Tl Returns. Five taxpayers said that they did not have any donations to claim or they donated anonymously and did not receive any receipts for their donations. iv. One taxpayer, Mathew Furtado said that part of the fees of $1,500 he paid for preparation of his Tl Returns was going to an accountant and to a church. He said that he knew that the donation would be claimed on his Tl Returns, but he did not know that the donation amounts claimed for 2013 and 2012 are $2,550 and $2,500, respectively. v. One taxpayer, Ebrahim Farid, said that he told Jesow that he sent $1,000 to $2,000 a year overseas to help his relatives and other people in need. He did not know that his donations were claimed on his spouse's Tl Returns: $3,000 in 2014, $1,000 in 2013, and $2,600 in 2012. vi. I did not ask one taxpayer, Manglibe Badie, about his donation claim of $280 on his Tl Return for the 2014 taxation year. · f Page 18 of31 G) Ten taxpayers, whose Tl Returns contain business and professional losses, said the following: L Four taxpayers said that they did not own or operate any business. 1i. One taxpayer, Piera Morelli, said that Jesow claimed business losses on her Tl Returns and told her to say that she is a sales person and that she sells '.'home stuff' if she is asked about her non-existing business. When she asked him if it was legal, he told her not to worry about it and keep her gas receipts. ni. One taxpayer, Jamal Reeisi, said that he had no professional expenses to claim, because his employer reimbursed all his expenses. 1v. Four taxpayers said that they had a business to report and one of them, Angela Sterread, said that she made money from her business in 2013, but the net loss of $8,944 was claimed on her 2013 Tl Return. She also said that she started her business to help her financially. The net professional losses claimed on her Tl Returns were: $7,809 in 2012 and $9,777 in 2014. (k) All five taxpayers, whose Tl Returns include rental losses, said that they never checked what rental income and expenses were included on their Tl Returns. One of the five taxpayers, Ebrahim Farid, said that he told Jesow that he rented the room in his basement to his daughter for $150 a month when she came to visit. The rental expenses claimed on his Tl Returns for the 2012 to 2014 taxation years, inclusive, are between 85-100% of his total property expenses. Two taxpayers did not know that their rental expenses included expenses they did not incur for their rental properties, such as gasoline and motor vehicle expenses for one taxpayer for the total of $11,082 for the 2012 and 2013 taxation years and general supplies, other supplies, office expenses, legal and accounting, and motor vehicle expenses for the other taxpayer for the total of $21,755 for the 2012 to 2014 taxation years, inclusive. (1) One taxpayer, Korsah Kontoh, said that Jesow was selling donation receipts, when he came to Jesow to prepare his 2013 Tl Return. He saw that Jesow had two stacks of donation receipts with word "catholic" on them on his desk. Jesow charged $50 and $100 per receipt, but the taxpayer did not see what donation amounts were on those receipts. Jesow asked him ifhe wants more donations and he told Jesow that he only wants to claim the donations he made to his own church. Another taxpayer, Piera Morelli, said that Jesow collected donations and she saw the collection bins in Jesow's old office. (m) After receiving a letter from CRA in May, 2015, one of the 27 taxpayers interviewed, Piera Morelli, went to see Jesow for help. She said that Jesow wrote the response on the form and told her what amounts she needed to tell CRA she claimed for cell phone, line of credit, and gas and that she would also need the amounts for car insurance and property taxes. She wrote what he dictated on a small sheet of paper. (n) Twenty four of the 27 taxpayers interviewed said that Jesow prepared their Tl Returns in their presence using a computer. He printed their Tl Returns and gave them to the taxpayers to mail to CRA at the time their Tl Returns were prepared. (o) Twenty one of the 27 taxpayers interviewed said that Jesow gave them a summary of their Tl Returns and/or "Keyword data" or a few printed pages. (p) Seven of the 27 taxpayers interviewed brought Jesow's business card to the interviews with the following information: · Je~ow's Accounting and Tax Services Income Tax ...... Accounting ...... Resume Writing Mohamed Ali Jesow, BSC., MSA Tel/Fax: (416) 588-8774 2192 Dundas Street West, Toronto, Ontario M6R 1X3 E-mail: mojesow@gmail.com (q) Thirteen of the 27 taxpayers interviewed said that they contacted Jesow by telephoning (416) 588-877. Three taxpayers said that they contacted Jesow by email. j!'/ Page 19 of31 (r) The taxpayers interviewed said the following regarding Jesow's business location: i. Six said they went to Jesow's office located at 2192 Dundas Street West, Toronto. ii. Four taxpayers said that Jesow's office/business is located at 2192 Dundas Street West, Toronto. ni. Twelve taxpayers said that they went to Jesow's office or Jesow's office/business is located on Dundas Street or Dundas West near Dundas subway station or Dundas West and Roncesvalles or Dundas West and Bloor. iv. One taxpayer, Yonas Tesema, said that Jesow's office is in a basement, but he did not remember the address. v. One taxpayer, Jamal Reeisi, said that he always went to Jesow's office at Bloor, west of Keele; same taxpayer showed me his cell phone with Jesow's contact information and Jesow's address listed as 2192 Dundas Street West, Toronto. vi. One taxpayer, Korsah Kontoh, did not know Jesow's new address. (s) Nineteen of the 27 taxpayers interviewed said that Jesow's office is located in the basement/ downstairs/underground, under a convenience or food store. (t) Five of the 27 taxpayers interviewed said that Jesow's business was previously located on Bloor Street or Bloor and Keele Street or Keele Street. One taxpayer, Ritah Nakirya, said that · Jesow's previous address was 1665 Bloor Street West, Toronto. Two taxpayers showed Jesow's business card with the address of 1665 Bloor Street West, Toronto and said that it was Jesow's address two to four years ago. One taxpayer, Gallican Gasana said that Jesow moved and his previous address was two minutes' drive from his new office at 2192 Dundas Street West. (u) Three taxpayers said that they signed in the book/appointment book. Four taxpayers said that a receptionist/secretary/lady was taking names or appointments. Two of the four taxpayers said that she had a notebook or register. One taxpayer said that the receptionist had a sign-in sheet. Two taxpayers said that there was a computer in a waiting or reception area. Four taxpayers said that the receptionist had a computer. One taxpayer, Aderonke Akintunde, said that the receptionist did not have a computer and she had to fill the register as she came in. (v) All twenty seven taxpayers interviewed provided their T4 slips to prepare their Tl Returns. In addition to T4s, 23 taxpayers provided other documents, such as other tax slips, RRSP receipts, metro passes, donation, and medical receipts. (w) All taxpayers interviewed reported making payments in cash to have their Tl Returns prepared. Three taxpayers said that Jesow had a book/notebook where he records payments. Two taxpayers said that Jesow looked at his notebook to see how much they paid him previously. Twenty one of the 27 taxpayers did not receive any receipts for their payments. Two taxpayers, Million Mekonnen and Akberet Amne, said that they received receipts from Jesow, but did not keep them. One taxpayer, Nuno Fortes, said that he received receipts and they were attached to the summaries of his Tl Returns. Two taxpayers, Solomon Gabretsadik and Angela Sterread, said that Jesow sometimes gave them a receipt. One taxpayer, Aly Keita, did not remember if he received any receipts from Jesow. (x) Fifteen taxpayers interviewed said that Jesow did not review their Tl RetUrns with them. Seven taxpayers said that Jesow showed or told them their refund and/or GST credit and one taxpayer said that Jesow showed him the taxes owed on the computer screen. One of the seven taxpayers said that Jesow also showed his income and where to sign. One taxpayer said that Jesow reviewed her Tl Returns with her in detail and another taxpayer said that Jesow showed him his Tl Returns, but he did not check details. Sources for (a) to (y): Investigator's working papers: Analysis of Taxpayers Responses to Interview Questions: December 16, 20 16 Notes pertaining to interviews with the taxpayers Witness Statements !/. Page 20 of31 (y) I will not be relying on information provided by Neil Johnson ("Johnson"), because I noticed contradictions in his responses and the following inconsistencies between his responses and information on his Tl Returns: i. He said that he has been single for about seven years or common-law with person who lives in Jamaica, but his 2014 Tl Return indicates that his marital status is married and spousal amount of $11,138 was claimed for 2014. · 11. He said that he reviewed his Tl Returns, but he did not know that 'carrying charges and interest expenses' and higher donation amount was claimed on his Tl Returns . m . He said that his business income was between $15,000 and $20,000, but his Tl Returns show gross business income of $1,205 in 2013 and $1, 198 in 2012 and net loss of $10,451 in 2013 and $8,661 in 2012. 1v. He said that his Tl Returns were prepared by Seyad on a laptop in his presence. His Tl Returns for 2012, 2013, and 2014 have a software license number 14309 printed on each page of his Tl Returns and Jesow's EFILE number J9861, as referred to in subparagraph 24(a), printed on the last page of his 2012 Tl Return. Sources: Notes pertaining to interview with Neil Johnson: December 10, 2015 Tl Returns of Neil Johnson for 2012 to 2014, inclusive T2020 for Neil Johnson: December 10, 2015 46. Based on the taxpayers' interviews, I reviewed, analysed and summarized the false claims for the 2012 to 2014 taxation years, inclusive, for 26 of the 27 taxpayers interviewed by CID, as referred to in paragraph 45. The total amount of the false claims for 26 taxpayers interviewed is as follows: Type of Claim 'Carrying charges and interest expenses' 'Other employment expenses' Medical expenses Donations Net business loss Net rental loss Net professional loss Public transit amount Total 2014 $13,376 26,349 14,814 5,500 5,497 12,769 2,598 9,372 $90,275 2013 $13,988 51,058 31,093 5,430 21,797 12,569 19,449 6,027 $161,410 2012 $9,644 23,385 26,221 1,800 23,255 7,499 14,878 3,304 $109,986 Total $37,008 100,792 72,127 12,730 50,549 32,836 36,925 18,703 $361,670 In order to be conservative the total false claims amount does not include instances where the taxpayer indicated that they had incurred expenses but could not provide an exact amount and supporting documentation. Source: Investigator's working papers: False Claims for 2012-2014 for the Taxpayers Interviewed by CID: July 5, 2016. 47. To determine if Jesow is still preparing Tl Returns and operating from the current business location, I took the following steps : (a) On September 14, 2016, I reviewed RAPID information for Jesow and found that he filed his Tl Return for 2015 and reported business income, as referred to in subparagraphs 12G) and 12(p). His current mailing address is 2192 Dundas Street West, Toronto, as referred to in subparagraph 12(e). The cheques issued to him for GSTC and OTB have been sent to this address since May 2016, as referred to in subparagraph 12(f). (b) On September 20, 2016, I received and reviewed Jesow's 2015 Tl Return. He reported business income from Jesow's Accounting and Tax Services, as referred to in subparagraphs 12G) and 12(p). The business address on the Statement of Business or Professional Activities is 2192 Dundas Street West, Toronto, as referred to in subparagraph 13(b). I Page 21 of31 (c) Between October 11, 2016 and October 12, 2016, I reviewed 2015 Tl Returns of seven of the 27 taxpayers interviewed, as referred to in subparagraph 44. I noticed that "DT Max" is printed on the last page and "Lie: 14309" on each page of their 2015 Tl Returns. Sources: T2020: October 11, 2016 Taxpayers' Tl Returns for 2015 (d) On October 18, 2016, along with Pierre Wroblewski, I interviewed Aderonke Akintunde ("Akintunde"). Akintunde voluntarily provided the following information: L Jesow prepared her 2015 Tl Return at 2192 Dundas Street West, Toronto. She called him at 416-588-8774 before she went there. Akintunde also gave me Jesow's new business card with the address 2192 Dundas Street West, Toronto to photocopy. IL Jesow prepared her 2015 Tl Return in her presence on a computer. She does not remember if it was desktop or laptop computer. Source: Notes pertaining to interview with Aderonke Akintunde: October 18, 2016 (e) On October 25, 2016, along with Tony Wong, I interviewed Ebrahim Farid ("Farid"). Farid voluntarily provided the following information: L He went to Jesow's office at 2192 Dundas Street West, Toronto, to have his 2015 Tl Return prepared. Sources: Notes pertaining to interview with Ebrahim Farid: October 25, 2016 Witness Statement of Ebrahim Farid: June 9, 2016 11. Jesow prepared his 2015 Tl Return in his presence on a computer. He did not see the computer screen, because it was facing Jesow. Source: Notes pertaining to interview with Ebrahim Farid: October 25, 2016 (f) On November 14, 2016, I conducted a reverse telephone number lookup on 411 website by the phone number 416-588-8774, which is shown on Jesow's business card. The search revealed that this phone number is registered to "Jesow Accountant and Tax Services" and the address is "2192 Dundas St W, Bsmt, Toronto, ON, M6R 1X3." Source: Internet search - htti}s://411.ca: November 14, 2016 (g) On November 14, 2016, I searched on www.yellowpages.ca by phone number 416-588-8774 and found that the number belongs to "Jesow Accountant and Tax Services" located at "2192 Dundas St W, Toronto, ON M6R 1X3" Source: Internet search - www.yellowpages.ca: November 14, 2016 (h) On November 14, 2016, I conducted a search by phone number 416-588-8774 and Jesow's SIN number on the BN System. The search by phone number indicated that the phone number is associated with two business numbers ("BN") : 89185 0141 for Mohamed Ibrahim and 89794 9368 for Mohamed Jesow. The BN 89794 9368 has operating/trading name Jesow's Accounting & Tax Services. The search by SIN number indicated that Jesow's Accounting & Tax Services BN 89794 9368 RTOOOl is still pending closure, the business address is 1665 Bloor St W, Toronto and mailing address is 59100-2238 Dundas St W, Toronto. The address of Mohamed Ibrahim BN89185 0141 does not match Jesow's current or previous address. Source: BN System: November 14, 2016 (i) On March 16, 2017, along with Pierre Wroblewski, I walked past 2192 Dundas Street West. I saw the sign on a white background "Jesow's Accounting & Tax Services (416) 588-8774" and flashing neon sign "Income Tax" with arrows pointing down in the Baraka Halal Food store's window on the first floor of the building. Between 4:30 p.m. and 6:32 p.m., I observed six pe9ple went down to the basement of 2192 Dundas Street West and did not come back for at least twenty minutes. .,/· Source: t'' T2020: March 16,2017 Page 22 of31 ... 48 . In a course of my investigation, I received and examined the total of 414 paper Tl Returns filed for 165 taxpayers, whose Tl Returns were allegedly prepared by Jesow, for some or all of the 2012 to 201 5 taxation years, inclusive. Three hundred and ninety seven (397) of the 414 Tl Returns were prepared using what appeared to be the same software and software license number. The software name, 'DT Max' was printed on the bottom of the last page and 'Lie: 14309' on the top of each page of these Tl Returns. The font of the printed Tl Returns appears to be similar. One hundred and eighteen (118) of the 127 Tl Returns for the 2012 taxation year with 'DT Max' and 'Lie: 14309' printed on the Tl Return contain EFILE number J9861 in the field 489 (EFILE number of the tax preparer). Source: Investigator's working papers: Number of Tl Returns for 2012-2015 Examined by the Investigator Jesow's Business Address: Basement - 2192 _D undas Street West, Toronto 49. As a result of the information reviewed and obtained in the course of the investigation I believe, at this time, that Jesow's business address is the basement of2192 Dundas Street West, Toronto, for the following reasons: (a) The MTO database, as referred to in subparagraph 12(g), listed the address of Jesow as 2192 Dundas St W, Toronto. Jesow's addres~ on the MTO's database was last updated on May 2, 2014. (b) Seven of the 27 taxpayers interviewed said they went to Jesow's office located at 2192 Dundas Street West, Toronto, as referred to in subparagraphs 45(r) and 47(e)i47(e). Four taxpayers said that Jesow's office/business is located at 2192 Dundas Street West, Toronto. Eleven taxpayers said that they came to Jesow's office or Jesow's office/business is located on Dundas Street or Dundas West near Dundas subway station or Dundas West and Roncesvalles or Dundas West and Bloor. One taxpayer said that Jesow's office is in a basement, but did not remember the address. One taxpayer said that he went to Jesow's office at Bloor, west of Keele; same taxpayer showed, me his cell phone with Jesow's contact information and address listed as 2192 Dundas Street 'West, Toronto. One taxpayer did not know Jesow's new address. (c) Seven of the 27 taxpayers interviewed showed Jesow's business card, as referred to in subparagraph 45(p), with the following information: Jesow's Accounting and Tax Services Income Tax ..... Accounting ..... Resume Writing Mohamed Ali Jesow, BSC., MSA Tel/Fax: (416) 588-8774 2192 Dundas Street West, Toronto, Ontario M6R 1X3 E-mail: mojesow@gmail.com (d) The business address on the Statements of Business or Professional Activities attached to Jesow's Tl Returns for 2014 and 2015 taxation years is 2192 Dundas St West, Toronto, ON M6R 1X3, as referred to in subparagraph 13(b). (e) On September 2, 2015, accompanied by Gurminder Singh, I walked by 2192 Dundas Street West, Toronto and noted that the first floor of this three-story building was occupied by Barak.a Halal Food store. I noticed a sign for Jesow's Accounting and Tax Services in the store's window. There were stairs leading to the basement in the front of the building. I observed another sign for Jesow's Accounting and Tax Services with hours of operation and phone number on the door to the basement. Source: T2020: September 2, 2015 Page 23 of31 (f) On March 15, 2016, accompanied by Pierre Wroblewski, I walked by 2192 Dundas Street West, Toronto and saw that the first floor of the building was occupied by Baraka Halal Food store, which had a flashing neon sign "Income Tax" in its window. I also noted the freestanding sign on a sidewalk in front of the building with the following information: Jesow Accounting & Tax Services -.It Basement -.It 2192 Dundas Street West, Toronto, ON M6R1X3 (416) 588-8774 Sources: T2020: March 15, 2016 T2020 of Pierre Wroblewski: March 15, 2016 (g) On October 5, 2016, accompanied by Tony Wong, I walked by 2192 Dundas Street West, Toronto. I did not see any signs on the basement door and it was dark inside. I observed the sign "Jesow's Accounting & Tax Services (416) 588-8774" and unlit neon sign "Income Tax" in the Baraka Halal Food store's window on the first floor of the building. Sources: T2020: October 5, 2016 T2020 of Tony Wong: October 5, 2016 (h) On November 14, 2016, I conducted internet searches, which showed "Jesow Accountant and Tax Services" address as '2192 Dundas St W, Bsmt, Toronto, ON, M6R 1X3', as referred to in subparagraphs 47(f) and 47(g). (i) On February 15, 2017, accompanied by Pierre Wroblewski, I walked past 2192 Dundas Street West. I observed the sign with the white background in the Baraka Halal Food store's window: 'Jesow's Accounting & Tax Services 416-588-8774' and lit neon sign 'Income Tax' with arrows pointing down. I saw a handwritten sign in the basement window showing 'out of office', would be back, phone number 647-609-5884 and 'M.Jesow' on the bottom of the sign. Sources: T2020: February 15, 2017 T2020 of Pierre Wroblewski: February 15, 2017 G) On March 16, 2017, along with Pierre Wroblewski, I walked past 2192 Dundas Street West and saw the sign on a white background "Jesow's Accounting & Tax Services (416) 5888774" and flashing neon sign "Income Tax" with arrows pointing down in the Baraka Halal Food store's window on the first floor of the building, as referred to in subparagraph 47(i). (k) At this time, I have no grounds to believe that this location is Jesow's personal residence. Handwriting Samples and Document Examination 50. In the course of my investigation and inquiries, on March 16, 2017, I was informed by Samiah Ibrahim, Manager of Forensic Document Examination Section, Science and Engineering Directorate of the Canada Border Services Agency that: (a) She has knowledge and experience in the forensics analysis of documents; (b) To perform a forensic handwriting analysis (which includes signatures, handprinting, and numerals), comparable samples of handwriting are required; (c) Handwriting samples can be found on Tl Returns, cancelled cheques, and other documents; (d) Best results are achieved when the samples obtained.were produced contemporaneously within the time period that the questioned handwriting was produced; (e) ·In most cases, in order to obtain the best results, the handwriting samples should be original rather than photocopies; (f) Samples of handwriting can usually be gathered during a search and seizure action at an individual's personal residence or place of business; ;/ ,z Page 24 of31 (g) To perform a forensic analysis on printed documents, samples from devices, or materials that may have produced such documents are required; (h) Best results are achieved when such devices can be submitted to the laboratory for analysis, example, typewriters, laser printers, inkjet printers, facsimile terminals, scanners, photocopiers, stamp impression devices, etc., in the event that this is not possible samples must be collected from each of those devices; (i) When available, operator's manuals and accessories pertaining to devices outlined in subp~agraph 50(h) above should be submitted; and (j) Samples of handwriting and samples from devices referred to in paragraphs (g) and (h) under the heading "THINGS TO BE SEARCHED FOR", will be required to perform any forensics tests deemed necessary. Electronic Documents and Data 51. On March 20, 2017, I received information from Darlene Bird, who is a member of the Criminal Investigations Division of the Canada Revenue Agency, who stated the following: (a) She has been involved in computer sea:rch and seizures including the computer forensic examination of digital evidence and has been trained in relation to the proper handling and examination of digital evidence. (b) As a trained specialist in computer forensic examination of digital evidence she provides technical advice, guidance and training to Computer Forensic Analysts and equivalents (both hereinafter referred to as CFA's) in computer search and evidence recovery which includes computer forensic search, analysis, extraction and preservation of digital data from computer systems, data, and electronic documents. (c) Until an authorized search has been successfully initiated, it is not possible to know what may be found within the electronic documents system as defined in the.Canada Evidence Act. Where possible, before seizing any electronic documents system, the CF A(s) will use forensically sound tools and techniques which may include conducting cursory keyword searches of the digital devices and media to determine if the computer system contains evidence of the alleged offence unless it is impractical or impossible to do so. (d) The electronic documents system will be examined by or under the supervision of a CFA who has been trained in the forensic analysis of the electronic documents system and data retrieval. This may include an examination of: L · IL Internet artifacts such as the search history and copies of web pages created on the computer or downloaded from the internet; Copies of electronically created documents such as letters, spreadsheets; ni. Copies of e-mails received and sent from the computer system. (e) Dependent on the facts and circumstances of the case, the original electronic documents . system niay be seized, forensically copied in part or imaged in its 'entirety on site (hereinafter referred to as a "copy"). In all cases, the CFA will consider all facts and circumstances, including the properties relating to the data, technical and accessing limitations, and whether that item is required to conduct a forensic recovery, examination and disclosure of data. The CFA uses specialized forensic computer tools to help ensure the integrity of the electronic documents system is maintained. Where possible and practical, the CFA will make copies of the data contained within the electronic documents system and then perform forensic analysis on the copy. Page 25 of31 (f) The existence and search of digital evidence on an electronic documents system will vary depending upon the type and volume of evidence. F.or example, i. The electronic documents system including peripheral components may be seized because of technological constraints and barriers. To illustrate, the electronic documents system may contain extraordinary amounts of data, which includes data that may be mislabelled, encrypted, stored in hidden directories, deleted or embedded in unused space. This data may require a specific environment and tools, in order to be accessed or made intelligible, including the use or the presence of a specific computer system, computer component or computer program. From a technical perspective, it may not be feasible to search and process all this information at a search location. Therefore, the recovery of data described in paragraphs (i), G), (k), and (1) of the "Things to Be Searched For" may require meticulous analysis using a wide array of forensic tools and processes in a controlled environment; IL The CF A may be required to seize and secure volatile evidence that is located on or available to the computer at the time the search warrants are executed. This may include, but is not limited to evidence located in the random access memory on a computer, data that is stored in the "cloud'', and/or remote storage located within or outside of Canada. If this data is seized, steps will be taken to ensure this data is appropriately secured and that the subsequent search of this data is judicially authorized as necessary; m. Digital evidence is often stored on portable devices such as laptop computers and USB keys which enable a person to easily transport digital evidence between locations; iv. If the electronic documents system is seized, a CFA will conduct the following procedures unless technical constraints exist: (1) Electronic documents system will be properly secured and safely transported to a CRA Regional Processing Centre or other secure location; (2) The original seized data will be copied wherever possible and the c9pies (and original electronic documents system where relevant) will be placed in a secure CRA location reserved for storing evidence; (3) The copy will be tested to ensure that the data can be properly accessed and processed using compatible equipment while maintaining its integrity; (4) Where possible and practical, the original electronic documents system may be returned to the person from whom it was seized together with the original data or a copy of the original data contained in the system. Other factors may be established which may warrant retaining the original or copies including, but not limited to, reason(s) to believe that the system was used as a tool of the crime or contains contraband. (g) In the course of the examination and analysis of the data by a CFA, they may encounter data not in itself evidence of criminal behavior but which may reveal the identity of the user or users of the devices at times relevant to this investigation. Data located on the device may not contain specific evidence in support of the alleged offence but may support the ownership, use, control, access and configuration of the device which may be necessary to demonstrate who was involved in the commission of the alleged offence(s). This data may include but is not limited to the identification of specific user account(s), passwords, pictures, file path(s), internet artifacts and search history amongst other potential evidence on a computer system; and . (h) In the course of his/her examination, either during or after the search, the CFA may encounter data that is not related to the alleged offence(s). Where feasible, the CFA will make efforts to minimize providing me (the lead investigator) with data that is not evidence of the alleged offence(s) or that may be subject to a solicitor client. The CFA will take appropriate steps to document their actions directly or through the use of software in order to demonstrate the reasonableness of the conduct of the search. 7/ Page 26 of31 LOCATION OF TIDNGS 52. Jesow operated his tax preparation business from the basement of 2192 Dundas Street West in Toronto. This finding is supported by the following: (a) Seven of the 27 taxpayers interviewed said they went to Jesow's office located at 2192 Dundas Street West, Toronto; four taxpayers said that Jesow's office/business is located at 2192 Dundas Street West, Toronto, as referred to in subparagraphs 45(r) and 47(e). (b) Nineteen of the 27 taxpayers interviewed said that Jesow's office is located in the basement/ downstairs/underground, under convenience or food store, as referred to in subparagraph 45(s). (c) Thirteen of the 27 taxpayers interviewed said that they contacted Jesow by telephoning (416) 588-8774, as referred to in subparagraph 45(q). A reverse search of the website 411.ca conducted on November 14, 2016, revealed that telephone number (416) 588-8774 was assigned to Jesow Accountant and Tax Services and its service location was 2192 Dundas Street West, Basement, Toronto, ON M6R 1X3, as referred to in subparagraph 47(f). (d) Seven of the 27 taxpayers interviewed showed Jesow's business card with the address of Jesow's Accounting and Tax Services listed as 2192 Dundas Street West, Toronto, Ontario M6R 1X3, telephone number (416) 588-8774, as referred to in subparagraph 45(p). (e) A search of Yell ow Pages, as referred to in subparagraph 4 7(g), indicated the business address of Jesow Accountant and Tax Services is 2192 Dundas St W, Toronto, ON M6R 1X3, telephone number is (416) 588-8774. (f) Jesow's Statement of Business and Professional Activities included on his Tl Returns for 2014 and 2015 taxation years show the business address of Jesow' s Accounting and Tax Services as 2192 Dundas St West, Toronto, as referred to in subparagraph 13(b). (g) Jesow's mailing address on his 2015 Tl Return is 2192 Dundas St West, Toronto, ON M6R 1X3, as referred to in subparagraph 12(e). (h) According to the MTO's database, Jesow's address is 2192 Dundas Street West, Toronto, Ontario, as referred to in subparagraph 12(g). (i) A sign of Jesow's Accounting and Tax Services was observed with hours of operation and phone number on the door to the basement of 2192 Dundas Street West, Toronto, as referred to in subparagraph 49(e). G) A freestanding sign of Jesow's Accounting & Tax Services showing the address 2192 Dundas Street West, Toronto were observed on a sidewalk in front of the 2192 Dundas Street West, as referred to in subparagraph 49(f). (k) A sign "Jesow's Accounting & Tax Services (416) 588-8774" and neon sign "Income Tax' with arrows pointing down was observed in the Baraka Halal Food store's window located on the first floor of the building at 2192 Dundas Street West, as referred to in subparagraph 47(i), 49(g), and 49(i). (1) . A handwritten note was observed in the basement window of 2192 Dundas Street West showing 'out of office', would be back, phone number 647-609-5884, and 'M.Jesow' on the bottom of the sign, as referred to in subparagraph 49(i). Page 27 of31 REASONS TO BELIEVE THINGS WILL BE FOUND IN THE BASEMENT OF 2192 DUNDAS STREET WEST, TORONTO, ONTARIO 53: As a result of my finings outlined above, in particular: (a) Eleven of the 27 taxpayers interviewed, as referred to in paragraph 43, said that they went to Jesow's office located at 2192Dundas Street West, Toronto, Ontario to have him prepare their Tl Returns, as referred to in subparagraphs 45(r) and 47(e), at which time they provided him with the information slips required for him to prepare their Tl Returns, as referred to in . subparagraph 45(v). (b) Twenty four of the 27 taxpayers interviewed said that Jesow prepared their Tl Returns in their presence using a computer, as referred to in subparagraph 45(n). (c) Twenty four of the 27 taxpayers interviewed said that the tax preparer provided them with their printed Tl Returns to be mailed to the CRA at the time their Tl Returns were prepared, as referred to in subparagraph 45(n). Twenty one of the 27 taxpayers interviewed said that Jesow gave them summary of their Tl Returns and/or "Keyword data" or few printed pages, as referred to in subparagraph 45(0). All Tl Returns of the taxpayers interviewed in possession of the CRA were printed Tl Returns with "Lie: 14309" printed on a top of each page and "DT Max" on a last page of all Tl Returns, except two Tl Returns, which the taxpayers confirmed were prepared by other tax preparers and filed electronically, as referred to in subparagraph 45(a). (d) Three taxpayers said that Jesow had a book/notebook where he records payments. Two taxpayers said that Jesow looked at his notebook to see how much they paid him previously, as referred to in subparagraph 45(w). (e) Four taxpayers said that they signed in the book/appointment book/register, five taxpayers said that receptionist was taking names or appointments or had a sign-in sheet, two taxpayers said that there was a computer in a waiting/reception area, four taxpayers said that receptionist had a computer, as referred to in subparagraph 45(u). (f) Five taxpayers said that Jesow gave them receipts for their payments, as referred to in subparagraph 45(w). (g) One taxpayer, Aderonke Akintunde, said that Jesow sometimes made copies of her donation receipts, as referred to in subparagraph 45(i). (h) Three taxpayers said that they contacted Jesow by email, as referred to in subparagraph 45(q) . Jesow included his email address on his business card, as referred to in subparagraph 45(p). (i) The additional 1,382 taxpayers were identified, whose Tl Returns for the 2012 taxation year showing J9861 on line 489 "EFILE number'', as referred to in paragraph 33. The EFILE account J9861 was created for Jesow's Accounting & Tax Services, as referred to in paragraph 24. G) Three hundred and ninety seven (397) of the 414 Tl Returns filed for 165 taxpayers, whose Tl Returns were allegedly prepared by Jesow, for some or all of the 2012 to 2015 taxation years, inclusive, were prepared using what appeared to be the same software and software license number. The software name, 'DT Max' was printed on the bottom of the last page and 'Lie: 14309' on the top of each page of these Tl Returns. The font of the printed Tl Returns appears to be similar. One hundred and eighteen (118) of the 127 Tl Returns for the 2012 taxation year with 'DT Max' and 'Lie: 14309' printed on the Tl Return contain EFILE number J9861 in the field 489 (EFILE number of the tax preparer), as referred to in paragraph 48. (k) The cheques issued to Jesow for GST Credit and Ontario Trillium Benefit have been sent to the postal code M6R 1X3, as referred to in subparagraph 12(f). His current mailing address in RAPID database is 2192 Dundas Street West, Toronto, Ontario, M6R 1X3, as referred to in subparagraph 12(e). ,, ' tr:/ Page 28 of31 (1) Jesow filed his Tl Returns along with the form T2125 (Statement of Professional or Business Activities) for 2012 to 2015 taxation years, inclusive, as referred to in subparagraph 12(p) and GST/HST Return for the 2012 taxation year, as referred to in paragraph 13(c), which indicates that Jesow had records to calculate his business revenue, expenses and GST/HST input tax credit. Under the section 230 of the Income Tax Act and 286 of the Excise Tax Act, in general, books, records, and their related source documents have to be kept for a minimum of six years from the end of the last tax year to which they relate. I have reasonable grounds to believe that the things listed in "THINGS TO BE SEARCHED FOR" are the records of Jesow;s tax preparation business operating under the business name Jesow's Accounting and Tax Services and also the records of his clients, and that these business and client records will be found at Jesow's business premises located in the basement of 2192 Dundas Street West, Toronto, Ontario. BELIEF THAT OFFENCES HAVE OCCURRED 54. As a result of my investigation and inquiries referred to in paragraphs 18 to 49 of this Information, I have reasonable grounds to believe that the offences described under OFFENCES have taken place, and more particularly that: (a) Jesow allegedly prepared Tl Returns for his clients that included false 'carrying charges and interest expenses', 'other employment expenses', public transit amounts, medical expenses, donations, professional, business, and rental losses and his clients were not aware that some of these claims were included on their Tl Returns or the amounts claimed were overstated, as referred to in subparagraphs 45(e) to 45(k). (b) Jesow' s clients interviewed by CID stated the following: L 11. Twenty two of the 23 taxpayers, whose Tl Returns contain 'carrying charges and interest expenses' said that they did not have any 'carrying charges and interest expenses', as referred to i:ri subparagraph 45(e). Nine of the 16 taxpayers, whose Tl Returns include 'other employment expenses' said that they did not have any employment expenses, one taxpayer said that his employment expenses were not significant and he did not know that $8,258 were claimed as his employment expenses in 2014 and $4,227 in 2013 on his Tl Returns, one taxpayer said that he did not buy any supplies for work and he did not know that supplies of $2,284 were · claimed as part of his employment expenses on his Tl Return for 2013 and $2,540 for 2012, as referred to in subparagraph 45(f). ni. Five of the 14 taxpayers, whose Tl Returns include public transit amounts, said that they did not use public transit or only used it occasionally, as referred to in subparagraph 45(g). 1v. Nine of the 25 taxpayers, whose Tl Returns include medical expenses, said that they did not have any medical expenses and one taxpayer said that his insurance paid for all his medical expenses, as referred to in subparagraph 45(h). v. Five of the 20 taxpayers, whose Tl Returns contain donations, said that they did not make any donations or they donated anonymously and did not receive any receipts for their donations; six taxpayers told me the amounts they donated, which were significantly less than the donation amounts claimed on their Tl Returns, as referred to in subparagraph 45(i). vi. Four of the ten taxpayers, whose Tl Retlims contain business and professional losses, said that they have never owned or operated business and one taxpayer said that he did not have any professional expenses to claim, as referred to in subparagraph 45(j). Page 29 of31 vii. One taxpayers, Piera Morelli, whose Tl Returns contain professional losses, said that Jesow reported non-existing business on her Tl Returns and told her to say that she is a sales person and that she sells "home stuff' if she asked about her business, as referred to in subparagraph 45G). She also said that Jesow wrote the response to CRA on the form and told her what amounts she needed to tell CRA she claimed for cell phone, line of credit, and gas and that she would also need the amounts for car insurance and property taxes, as referred to in subparagraph 45(m). vni. Two of the five taxpayers, whose Tl Returns include rental losses, did not know that their rental expenses included expenses they did not incur for their rental properties, such as gasoline and motor vehicle expenses for one taxpayer and general supplies, other supplies, office expenses, legal and accounting, and motor vehicle expenses for the other taxpayer, as referred to in subparagraph 45(k). ix. One taxpayer, Korsah Kontoh, said that Jesow was selling donation receipts, as referred to in subparagraph 45(1). (c) The most common amounts claimed on 431 of the 562 Tl Returns allegedly prepared by Jesow, which contain 'carrying charges and interest expenses' , are $902, $903, $905, $1 ,025, and 1,035, as referred to in paragraph 42. (d) As a result of the alleged false expenses and losses, claimed by Jesow in his clients' Tl Returns, as referred to in subparagraphs 54(a), his clients' taxes payable were reduced contrary to the provisions of the Income Tax Act. The total alleged false expenses and losses for Jesow 's clients interviewed by CID is $361,670, as referred to in paragraph 46. (e) Eighty four taxpayers, included in SAP referral, as referred to in paragraph 14, claimed 'carrying charges and interest expenses', 'other employment expenses', public transit amounts, medical expenses, donations, professional, business, and rental losses on their paper-filed Tl Returns for the total of $1,863,311, of which $1,044,100 was disallowed by CRA, as referred to in paragraph 27. (f) The additional 1,382 were identified, whose 2012 Tl Returns were allegedly prepared by Jesow, as referred to in paragraph 33 . CRA disallowed $2,036,752 of the $6,674,459 in the same claims for these 1,382 taxpayers. The remaining amount of $4,637,707 may not have been reviewed by CRA, as a result of the self-reporting system, as referred to in paragraph 34. WHY RECORDS ARE REQUIRED 55 . As a result of the investigation as set out in this Information, I have reasonable grounds to believe that the items described above under "THINGS TO BE SEARCHED FOR" will be required: (a) To determine whether or not Jesow prepared the Tl Returns of his clients. (b) To analyze, reconcile and determine the taxable income and-federal taxes reported and to be reported in the Tl Returns of the cfo:mts of Jesow for the 2012 to 2014 taxation years, inclusive. · (c) To identify the persons who participated in the offences set out above under OFFENCES. (d) To identify and prove the nature and details of the alleged fraudulent scheme and to have formal possession of all books, records, documents and things until the conclusion of the investigation or to provide evidence of the same in any court proceedings. 56. I have verified that the following officers: Alexis Burfield, Amanda Yuan, Christine Shin, Darlene Bird, Doug Wilkinson, Edward Meecham, Feisal Merali, Jeyasiri Kanapathyp illai, Karen Zheng, Luciano Ferlaino, Ming Yeung Siu, Yasmin Shaik, and I are public officers who have been appointed or designated to administer or enforce the Income Tax Act and Excise Tax Act. 57. It is proposed that if a search warrant is granted, that the officers of the CID and accompanying peace officers be permitted to search and seize in accordance with its terms. Page 30 of31 1) The things to be searched for, or some part of them, described in "THINGS TO BE SEARCHED FOR", exist, Par consequent, suite a mon (mes) enquete( s), j 'ai des motifs raisonnables de croire que, 1) Les choses a rechercher ou une partie d'entre-elles, decrient aux paragraphes 1 et (a) 2, existent 2) They are at the location "PLACE TO BE SEARCHED" and 2) Elles sont aux endroits mentionnes , aux paragraphes 1 et (a) 2, et 3) They will afford evidence with respect to the commission of the abovementioned offences against the Income Tax Act. 3) Elles foumiront une preuve touchant la commission des infractions a la Loi de l'impot sur le revenu. Therefore, as a result of my investigation, I have reasonable grounds to believe that, Therefore I request that a search warrant may be granted to search the said location for the said things. Par consequent, je demande que les mandats de perquisition soient accordes pour perquisitionner clans lesdits lieux en vue de trouver lesdites choses. Signature of Affiant (Signature du fonctionnaire assermentant la denonciation) Sworn before me this Assermente devant b }___ m01 ce - - - - - day of \V\N\GYJ jour de _ __ __ A.D. 2017. en l'an de grace 2017. at Toronto. L/2'2 t/}'Z(f;571a~ A Commissioner of Oaths in and for the Province of Ontario Juge de paix dans et pour Notolic Maureen Moore, o Commissioner, etc., Province of Oniorio, fo; the Government of Canada, Cono do Revenue Agency. Expires December ?.8, 2019. J · Page 31 of31 public