10/06/2026
Facing CRA penalties for unfiled T1 or T2 returns? This Manitoba case shows why a CPA review is critical before you file.
The Canada Revenue Agency (CRA) announced today that Michele Gabrielle of Selkirk, Manitoba, was sentenced on October 2, 2026, in the Selkirk Provincial Court, to a 30-month prison sentence. Michele Gabrielle pleaded guilty to one count of fraud over $5,000 under the Criminal Code.
A CRA investigation uncovered a calculated scheme that spanned from 2016 to 2019, during which Gabrielle fraudulently claimed Manitoba Refundable Tax Credits (MRTC). Initially manipulating her own T1 returns, Gabrielle expanded her operation by filing and amending returns for two family members and a significant other, exploiting their name to carry out the fraud. In total, 22 of her own returns, and 33 returns filed or amended on behalf of others, contained false claims. This resulted in fraudulent refunds amounting to $499,065.93. Gabrielle ensured the funds were deposited into bank accounts she controlled and used the money for personal gain, including extensive online gambling.
One of the credits Gabrielle falsely claimed was the Fertility Tax Credit, which is meant to ease the financial burden for families struggling with the high costs of fertility treatments. By claiming this credit without having any qualifying expenses, Gabrielle took advantage of a program designed to help people facing real emotional and financial challenges. In its investigation, the CRA found no evidence of fertility-related or other MRTC-qualifying expenses in relation to the claims.
Gabrielle also left behind a trail of evidence showing her awareness of the wrongdoing. Facebook messages reviewed by the CRA revealed that Gabrielle expressed no remorse for defrauding the government. Her statements demonstrated that Gabrielle knew her behavior was dishonest and illegal but prioritized personal gain over the potential consequences for those whose names she used.
All case-specific information above was obtained from the court records.
Tax evasion is a serious crime. Falsifying records and claims, hiding income, or inflating expenses can lead to criminal charges, prosecution, court-imposed fines, jail time, and a criminal record. For the five-year period between April 1, 2020, to March 31, 2025, the courts convicted and sentenced 106 taxpayers for evading or attempting to evade the payment of more than $39 million of taxes. As of March 31, 2025, these taxpayers were fined a total of $24.5 million and 49 individuals were sent to jail for a total of more than 98 years.
In addition to the court-imposed fines and/or jail sentences, convicted taxpayers have to pay the full amount of tax owing, plus related interest and any penalties assessed by the CRA.
The CRA is dedicated to maintaining the integrity of Canada’s tax system, thereby contributing to the social and economic well-being of Canadians. The CRA continues to aggressively pursue tax evasion, and false claims with all the tools available to it. The CRA works to make sure that individuals and businesses report all income earned and only claim benefits to which they are entitled, so that important benefit programs can be administered to those who need them. Any individual or business who underreports income, or claims losses or benefits to which they are not entitled may have to repay the benefit amounts and may be subject to other possible action.
