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TORONTO — A man who almost defrauded Revenue Canada of more than $40 million had his prison sentence increased on Wednesday but won’t have to serve any more time.

In a written ruling, the Ontario Court of Appeal said the 18-month term handed to Kevin Plange was far too little for the crime and upped it to three years.

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“The sentence imposed by the trial judge was demonstrably unfit when compared to other large-scale frauds,” the Appeal Court said. “The sentencing judge understated the moral blameworthiness of the respondent.”

At the same time, the higher court decided that Plange, who has already served the initial sentence, needn’t return to prison. Plange’s rehabilitation, the court said, showed he did not require going back to jail.

Separately, the Appeal Court upheld the validity of the mandatory minimum two-year sentence for fraud over $1 million, saying Plange’s trial judge had engaged in an unacceptable hypothetical exercise in striking down the provision as unconstitutional.