CRA slammed for 'reprehensible and malicious' prosecution of B.C. couple

[canada-man]

A B.C. Supreme Court judge has slammed the Canada Revenue Agency for suppressing and misstating evidence in its zeal to prosecute a Vancouver Island couple for tax evasion.

In a blistering 70-page ruling, Justice Robert Punnett ordered the CRA to pay Tony and Helen Samaroo nearly $1.7 million in damages for malicious prosecution of a deeply flawed case that ruined their reputations.

"A government agency maliciously used the criminal justice system to pursue the plaintiffs, and its wrongful conduct continued into the criminal trial itself. The CRA was seeking substantial terms of imprisonment and significant penalties. The manner in which the prosecution was initiated and carried out was egregious. It must be denounced," Punnett wrote.

"It affected the reputations of the plaintiffs, their professional lives and their family lives. It involved the concealment of exculpatory evidence. It involved the power imbalance of the state over the individual. It violated fundamental rights and was highly reprehensible."


CRA apologizes to single moms fighting for child benefits
The damages include nearly $348,000 for the legal fees the Samaroos spent to defend themselves in the 2011 provincial trial which ended in their acquittal.

They also include $300,000 for aggravated damages to each of them and $750,000 in punitive damages against the CRA.

The couple, who were both immigrants to Canada, operated a restaurant, nightclub and motel in Nanaimo.

The CRA, which has 30 days to appeal, did not return calls for comment.


http://www.cbc.ca/news/canada/british-columbia/cra-tax-prosecution-malicious-injustice-1.4563235

 

[Worf]

And aren't we glad Justin gave them nearly a $billion to find all of us tax 'cheats'?

 

[apoptygma]

And aren't we glad Justin gave them nearly a $billion to find all of us tax 'cheats'?

They will have to get the money for the court settlements from somewhere.

 

[massman]

And aren't we glad Justin gave them nearly a $billion to find all of us tax 'cheats'?

RTFA. Alleged tax evasion investigation and subsequent prosecution were all during the Harper years.

 

[Aardvark154]

The Court's Ruling: http://www.courts.gov.bc.ca/jdb-txt/sc/18/03/2018BCSC0324.htm


You didn't add.

From the same article:

"The judgment describes a tax evasion case which began in 2006 with a tip. During the subsequent audit, the CRA determined that substantial cash deposits had been made to the Samaroos' business accounts.

The Samaroos claimed they had been transferring old $100 and $50 bills — from a safety deposit box full of three decades' worth of savings — into the bank because they were afraid financial institutions would no longer accept the old currency.

But investigators rejected that explanation.

They believed the couple was dodging tax by failing to report income from the restaurant.

The investigation led to 21 charges for tax evasion. The CRA alleged the Samaroos had skimmed $1.7 million from their restaurant.

But Justice Punnett faulted CRA investigator Keith Kendal for putting forward a final report for charge approval without carrying out investigatory steps requested by a Crown prosecutor and, in doing so, providing "incomplete and erroneous information."

"As a witness, I found Mr. Kendal to be argumentative, evasive, inflexible and reluctant to concede what clearly should have been conceded. He wrote the Prosecution Report as an advocate, not an investigator," Punnett wrote.

"His clear intent was to see that criminal charges were laid. The presumption of innocence appeared to be meaningless to him. The manner in which he approached the evidence was not objective. He had his theory and he then sought to prove it."

The judge noted that Kendal testified he still believes the Samaroos are guilty of tax evasion, "and would, if given the chance, prosecute them again on the same theory and the same evidentiary basis."

Punnett said the case suggested "an unfortunate culture within the CRA."

He pointed to a primary report which cited the fact the agency hadn't prosecuted a restaurant or nightclub in Nanaimo as rationale to go ahead with the charges.

Justice Punnet wrote

"The CRA is vicariously liable for the conduct of Mr. Kendal and its employees, Its conduct in this case was high-handed, reprehensible and malicious."

 

[FAST]

I'm sure Hair Doo really loves those $million checks being given to crooks and terrorists,...must have a guilty conscience,... and this helps him sleep at night.

 

[massman]

The Court's Ruling: http://www.courts.gov.bc.ca/jdb-txt/sc/18/03/2018BCSC0324.htm


You didn't add.

From the same article:

"The judgment describes a tax evasion case which began in 2006 with a tip. During the subsequent audit, the CRA determined that substantial cash deposits had been made to the Samaroos' business accounts.

The Samaroos claimed they had been transferring old $100 and $50 bills — from a safety deposit box full of three decades' worth of savings — into the bank because they were afraid financial institutions would no longer accept the old currency.

But investigators rejected that explanation.

They believed the couple was dodging tax by failing to report income from the restaurant.

The investigation led to 21 charges for tax evasion. The CRA alleged the Samaroos had skimmed $1.7 million from their restaurant.

But Justice Punnett faulted CRA investigator Keith Kendal for putting forward a final report for charge approval without carrying out investigatory steps requested by a Crown prosecutor and, in doing so, providing "incomplete and erroneous information."

"As a witness, I found Mr. Kendal to be argumentative, evasive, inflexible and reluctant to concede what clearly should have been conceded. He wrote the Prosecution Report as an advocate, not an investigator," Punnett wrote.

"His clear intent was to see that criminal charges were laid. The presumption of innocence appeared to be meaningless to him. The manner in which he approached the evidence was not objective. He had his theory and he then sought to prove it."

The judge noted that Kendal testified he still believes the Samaroos are guilty of tax evasion, "and would, if given the chance, prosecute them again on the same theory and the same evidentiary basis."

Punnett said the case suggested "an unfortunate culture within the CRA."

He pointed to a primary report which cited the fact the agency hadn't prosecuted a restaurant or nightclub in Nanaimo as rationale to go ahead with the charges.

Justice Punnet wrote

"The CRA is vicariously liable for the conduct of Mr. Kendal and its employees, Its conduct in this case was high-handed, reprehensible and malicious."

No doubt at least from what the judge said, the CRA was way out of line. My only point was all of these activities occurred under a Harper govt, not Trudeau as the previous post suggested. Not that either would be really relevant, I hardly think that the PM is micromanaging CRA tax investigations.

Unfortunately, the way our tax rules are set up, if CRA thinks you’ve underpaid, evaded or improperly avoided tax, you need to pay up, then the onus is on you to prove otherwise, at your own inconvenience and cost. For some this can lead to financial ruin. This case added insult to injury by maliciously pursuing a criminal charge.

 

[K Douglas]

The CRA has been given additional powers from this Liberal government and they are using it to their fullest extent. We will be hearing more of these types of stories in the coming months and years I'm afraid.