Montreal firm controlled by Frank Magazine owner found guilty of tax evasion

A Montreal company whose principal shareholder is Frank magazine owner Douglas Parker Rudderham has been found guilty of tax evasion, says the Canada Revenue Agency.

Professional Pharmacy Wholesale Services Ltd. pleaded guilty Tuesday in court in Quebec, said an agency news release.

The firm was fined $325,000. In addition to this amount, the company must pay the full amount of tax owing, the release said, as well as related interest and any administrative penalties that may apply.

Professional Pharmacy Wholesale Services specializes in wholesaling diagnostic material, mainly for diabetes, the release said.

It said the company used false invoices for studies in the name of four suppliers. The names of three of them, one former lawyer from Nova Scotia and two companies from China, were used without their knowledge, while a fourth was that of another company incorporated by Rudderham, the release said.

The website for Professional Pharmacy Wholesale Services says he is the companys president and chief executive officer.

A Cape Breton native, Rudderham bought Frank, the satirical publication published out of Halifax, in part due to brand recognition.

Rudderham, who is in his 50s, hired a polling firm to do a phone survey of about 1,200 households across Nova Scotia, the Kings Journalism Review reported last year.

Franks name tested well, it said. Whether you liked it or didnt like it, everybody knew Frank, Rudderham told the review.

A Canada Revenue Agency investigation showed Professional Pharmacy Wholesale Services contravened the Income Tax Act by deducting more than $1 million in false expenses to lower its taxable income and avoid paying a total of $214,266 in taxes for the 2006, 2007 and 2009 tax years.

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Montreal firm controlled by Frank Magazine owner found guilty of tax evasion