Rule of Law and CRA

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Rule of Law and CRA

Canada Revenue Agency’s persistence in breaking the rule of law fosters a culture of abuse.

Canada Revenue Agency’s persistence in breaking the rule of law fosters a culture of abuse.

Summary

The Government of Canada just compensated Omar Khadr for breaking the rule of law. However, Canada Revenue Agency’s persistence in breaking the rule of law fosters a culture of abuse. This year is the 100th anniversary of Canadian income tax. It is time to end CRA breaking the rule of law.

Rule of Law: Definition

Duhaime’s Law Dictionary defines rule of law as:

That individuals, persons and government shall submit to, obey and be regulated by law, and not arbitrary action by an individual or a group of individuals.”

Background

The Government failed to enforce the rule of law during the Oka crisis.

The Government failed to enforce the rule of law during the Oka crisis.

My law professor says there is no rule of law in Canada. His first example was the Government’s failure to enforce the rule of law during the Oka crisis. His second example is the Kahnawake Gaming Commission hosting computer servers for gambling companies around the world. Gambling is illegal in Canada unless you get a license from the Government. The Government has never issued them a license, and their operation has never been tested in court. I propose a third example: CRA.

Rule of Law: None by CRA

Below are examples of CRA breaking the rule of law. This includes entrapping taxpayers.

The Pirruccio Case

Alex Doulis, author of Take Your Money and Run, talks about the Pirruccio case on his website, www.alexdoulis.com.

Alex Doulis, author of Take Your Money and Run, talks about the Pirruccio case on his website, www.alexdoulis.com.

Alex Doulis, author of the bestseller, Take Your Money and Run, talks on his website about the Pirruccio case. Rev Can had an agent sleep with Pirruccio’s secretary to, um, pump her for information about Pirruccio. The court ordered Rev Can to pay $7.5 million in compensation to Mr. Pirruccio and $250K to the secretary.

Revenue Canada had an agent sleep with Pirruccio’s secretary to get taxpayer information

What happened next is not on Alex’s site. Rev Can appealed. Rev Can had Pirruccio’s lawyer, Sam Laufer, disqualified by saying that they would call him as a witness. Pirruccio’s new lawyer refused all help, refused to call witnesses, and refused to use important evidence. This means Sam Laufer paying everything back plus $2 million. The court also sealed the case. This means you cannot see the court records.

The C.V. Myers Case

C.V. Myers was the Editor of Myers’ Finance and Strategy Newsletter. Rev Can charged Myers with tax evasion. After Rev Can lost in court, they invoked trial de novo (now illegal in Canada) and re-tried the case in 1976 with a newly appointed judge. Myers, in Palm Springs for his usual winter vacation, had an Ottawa law firm negotiate a deal with the Department of Justice. The DoJ agreed to not oppose his application to appeal the sentence if he came back to Canada.

The day Myers returned to Canada, his lawyer received a letter from the Department of Justice saying that they are reneging on the deal. They arrested him and threw him in jail.

The court sentenced Myers to two years in jail. It was an illegal sentence. It should be a fine plus jail. The court sentenced Myers to jail only and no fine.

Myer’s sentence was an illegal sentence. It does not exist in Canada’s law books.

Revenue Canada coerced the Parole Board to attach a condition for early release. Pay Revenue Canada’s tax assessments or no early parole. In other words, Canada created the equivalent of a debtor’s prison, which is outlawed in Canada.

The Holterman Case

Holterman was a lawyer in Hamilton, Ontario. From the Hamilton Spectator news article,

It took 14 years and a fight to the Supreme Court of Canada, but the Canada Revenue Agency has admitted it wrongly accused a pair of Hamilton-connected businessmen of evading their taxes.

CRA has admitted it wrongly accused a pair of Hamilton businessmen of evading their taxes.

The saga came to its whimpering end in January, with milquetoast letters from the appeals division of the CRA to Hamilton tax lawyer Marc Holterman and his Orillia business partner Thomas Tiffin. The agency admits it made an accounting mistake in 2002 and incorrectly included $932,000 in Tiffin’s income and $340,600 in Holterman’s that didn’t belong there — an error that triggered 15 criminal charges that destroyed the careers of both men.

Framed by CRA

But Holterman and Tiffin believe it was more than a mistake. They say the CRA framed them.

It wasn’t a mistake. It was intentional,” says Holterman, 62, whose law practice is in ruins. “They got away with prosecuting us on criminal offences they knew or should have known were untrue … There was no evidence. There was no proof.”

Retired Superior Court judge Nick Borkovich

Retired Superior Court judge Nick Borkovich. Hamilton Spectator file photo.

Superior Court Justice Nick Borkovich slammed CRA investigators for “serious misconduct,” including deliberately misleading another judge to obtain search warrants.

Fraud by CRA

“I have found serious misconduct on the part of the officials,” Borkovich said. Sworn affidavits by CRA investigators contained “fraudulent, false and grossly misleading” statements. Without that impugned information, an earlier judge would not have had reasonable grounds to issue five search warrants, including those for the homes of Tiffin and Holterman.

Deliberate Lies by CRA

Borkovich found the CRA conducted a criminal investigation from the moment it took the case. The judge went so far as to say a CRA investigator who testified he was conducting an audit “told a deliberate lie to this court.” An audit was never done.

Marc Holterman's lawyer, Dean Paquette.

Marc Holterman’s lawyer, Dean Paquette.

“A cynicism surrounds the justice system when somebody complains about being wronged” lawyer Dean Paquette says.”

Conclusion

These three cases span over 40 years. They show nothing has changed. In fact, they show CRA continues to foster a culture of lack of respect for the rule of law. In other words, it is institutional fraud.

We are showing more CRA misdeeds in the upcoming months.

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11 Comments

  1. […] law allows this doesn’t mean the Government will let you do it. We gave examples earlier of why there is no rule of law in Canada. We strongly advise you against declaring your paycheque as your private property. Instead, ask the […]

  2. […] Accountants are in the same boat. Using anything outside what is taught in schools can get you cited for unprofessional conduct. Financial professionals can have their license withdrawn if they have a criminal record. A criminal record can result from a CRA investigation based on only assumptions. Hardly anyone understands how income tax really works. That is why the conviction rate is 96%. It ruins your professional career even if you are not guilty. This happened to former tax lawyer Marc Holterman. […]

  3. […] deliberately misquoting a taxpayer to rule in favour of CRA. In addition, we discussed Canada lacking rule of law. Here, CRA changed her T1 filings and never told her (paragraph 40, 265-279). The CRA Investigator […]

  4. […] of a broken legal system“, said Margaret Atwood on Twitter. We agree that there is no rule of law. This is from telling people they are equal, then making some people unequal as officers. Some […]

  5. […] of a broken legal system“, said Margaret Atwood on Twitter. We agree that there is no rule of law. This is from telling people they are equal, then making some people unequal as officers. Some […]

  6. […] He deliberately set trial dates so that her lawyer could not attend. Until such judges obey the Rule of Law, Canada’s legal system is broken and is institutional […]

  7. […] Canada also ruled against her, not, it seems, because she is guilty, but to cover their butts. After all, finding her not guilty would be admitting that they entrapped, jailed and fined other taxpayers who could have been also not guilty. It also would be admitting that they have misled us about how individual income tax really works for 100 years. As we said earlier, there is no Rule of Law in Canada anymore. […]

  8. […] Ordinary employment is outside federal jurisdiction. However, recent court cases show they no longer respect the rule of law. This means they will win and you will lose. That is why we call their behaviour financial rape. […]

  9. […] any. That is why we say it is a broken legal system. This is yet another reason why we say Canada no longer obeys the Rule of Law. Needless to say, it is also institutional […]

  10. […] it will be interesting to see if Canada will reveal this. As we document how Canada flouts Rule of Law when it doesn’t suit their needs, we seriously doubt […]

  11. […] Theory, we cannot charge GST. (However, it seems such a declaration doesn’t stop Canada from ignoring the Rule of Law and committing financial […]

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