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.
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.”
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.
Below are examples of CRA breaking the rule of law. This includes entrapping taxpayers.
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.
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.
“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.
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.”
Superior Court Justice Nick Borkovich slammed CRA investigators for “serious misconduct,” including deliberately misleading another judge to obtain search warrants.
“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.
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.
“A cynicism surrounds the justice system when somebody complains about being wronged” lawyer Dean Paquette says.”
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.