Federal consultant faces consequences for failing to remit GST/HST collected from clients

The Canada Revenue Agency (CRA) announced today that Andrew McDermott, of Ottawa, Ontario and his corporation, AM Government Consulting Inc. (AMGC), pleaded guilty on October 21, 2026, at the Ottawa courthouse to one count of failure to remit collected goods and services tax/harmonized sales tax (GST/HST), contrary to the Excise Tax Act. McDermott also pleaded guilty to one count of fraud under $5,000 related to a separate investigation conducted by the Royal Canadian Mounted Police (RCMP). Following his guilty pleas, he received a conditional sentence of 12 months and was fined $20,000.

A CRA investigation revealed that between January 1, 2020, and December 31, 2021, AMGC entered into contracts with multiple businesses providing consulting services to the federal government and invoiced those businesses for services rendered. During that period, AMGC charged and collected GST/HST but failed to report and remit approximately $20,000 in GST/HST to the CRA.

The investigation further determined that McDermott was aware of his obligations to file GST/HST returns and remit the tax collected. Evidence obtained during the investigation showed that AMGC's contracts included provisions related to the collection and remittance of taxes, that the corporation had previously filed GST/HST returns, and that McDermott received multiple requests from the CRA to file outstanding returns and pay the GST/HST owing.

All case-specific information above was obtained from the court records.

The CRA would like to thank the RCMP for their collaboration in this investigation.

When taxpayers are convicted of evading GST/HST, they must pay the full amount of tax owing, plus interest and any civil penalties that may be assessed by the CRA. In addition, a court may fine convicted taxpayers between 50% to 200% of the tax evaded and impose a jail term of up to five years.

Wilfully failing to follow Canada’s tax laws could result in serious consequences, including reassessments, the imposition of civil penalties, criminal tax investigations and prosecutions resulting in court imposed fines, jail time and a criminal record.

The CRA has set up a free subscription service to help Canadians stay current on the CRA’s enforcement efforts.

Associated links

Criminal investigations at the Canada Revenue Agency

The CRA's criminal investigations process

Reporting suspected tax or benefit cheating in Canada

Voluntary Disclosures Program 

Contacts

Media Relations
Canada Revenue Agency
613-948-8366
cra-arc.media@cra-arc.gc.ca

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