For years, a Chilliwack couple, Russell Porisky and Elaine Gould, have run a school called Paradigm Education Group, which teaches people how to avoid paying income taxes.
At his seminars, Porisky teaches students that with proper interpretation of the law, and proper arrangement of their business affairs, they can receive income as a "natural person" rather than a taxpayer, and thereby avoid income taxes.
It's a variation of the Detax Movement, which clings to the belief that the federal government cannot legally force citizens to pay taxes.
Federal Crown prosecutors don't think much of this theory. They have charged the couple with two counts of income tax evasion, and one count of failing to remit the goods and services tax.
More interestingly, they also charged Porisky with counselling people - his students - to commit fraud. As far as I can determine, it's the first time such a charge, in the context of alleged income tax evasion, has been laid in Canada.
Porisky and Gould originally chose trial by jury. Jury selection was to commence on Nov. 1; however, they failed to show up, so a warrant was issued for their arrest. The next day, they were arrested and taken into custody. Bail was set at $20,000 each.
They have since agreed to trial by judge alone. That trial will start Monday morning in B.C. Supreme Court in Vancouver before Judge Elliott Myers.
Veteran federal prosecutor Bruce Harper will represent the federal government, while Porisky and Gould - after retaining and discharging defence lawyers Greg Delbigio and Michael Shapray - will represent themselves.
Given the defendants' lack of counsel, and the rather unorthodox arguments that they will undoubtedly pursue, it is bound to be - my apologies here - a taxing affair.
The couple ran Paradigm Education Group as a proprietorship, with Gould taking care of the accounting and administration, and Porisky conducting the lectures and producing the educational material.
On its website, Paradigm tells prospective students: "With balanced education, you'll not only be able to comply with the laws of this country, but you'll come to learn that paying income tax is neither good nor bad - it is simply, a choice."
As mentioned, the federal government doesn't buy this argument, but many others have. Paradigm's pitch has proved popular and generated handsome revenues, as indicated by the charges.
The government alleges the couple failed to report taxable income totalling $1,111,564 for the fiveyear period ending December 2008, thereby evading $225,222 in income taxes.
The couple is further charged with failing to collect and remit $66,133 in GST on goods and services that they sold through their business.
Then there is the allegation that Porisky "did counsel, procure, solicit or incite various persons" to commit fraud.
I note that one of Porisky's former students, Eva Sydel, tried to utilize his theories, with grim results.
In 2006, the former Vancouver dentist was charged with failing to report $996,000 in professional income between 1998 and 2003, which she earned by independently contracting her dental services to other practising dentists.
In her defence, she argued that she is a "natural person" - rather than a taxpayer - and is not bound by the Income Tax Act to file income tax returns, or pay any income tax.
However, the prosecution cited eight previous Canadian cases where the courts have rejected the "natural person" defence promulgated by tax protesters and self-described "detaxers."
At sentencing in October 2007, Vancouver Provincial Court Judge Paul Meyers asked: "How can somebody go for so many years, earning so much money, not paying a dime in taxes - and yet use everything that Canada has to offer by way of free facilities?"
He sentenced her to 18 months in jail and fined her $244,446.
Sydel appealed, but her arguments stretched credulity.
She argued that the judge and the chief investigator for the Canada Revenue Agency were Freemasons, an international fraternal organization dating back to the 1600s. (Conspiracy theorists often claim that the "invisible empire" of Freemasons has quietly controlled governments and economies worldwide for centuries.) Sydel submitted an affidavit from Kirby McAllister, who claimed he was a magician and had learned that Freemasons communicate through hand signals. He alleged that, during the court proceedings, the judge and the investigator had "engaged in non-verbal communication through the use of hand gestures and head movements."
Sydel also argued that the colours of the B.C. government logo are blue and gold, which have "specific Freemasonic symbolism," and the logo contains a pyramid-shaped mountain with sun rays emanating from it, which is a representation of the "All Seeing Eye of the Egyptian God Horus," another symbol associated with Freemasonry.
She further asserted that the federal government's telephone numbers in Vancouver contain the digits "666," which is the sign of the beast and a number frequently associated with Freemasonry.
She said this and other evidence prove that Freemasonry is now "completely in control" of the B.C. government, the judges and the courts.
As though that wasn't enough, she further alleged that the government had selected a Jewish judge and prosecutor because she was German: "The tactic or strategy of deliberately pitting a Jew against a German before a Jewish judge in a Provincial Court in Canada is an insult to all Canadians," she asserted.
Not surprisingly, her appeal never went anywhere.
There is no indication that her prior association with Porisky will factor into the government's current case against Porisky and Gould.
When I last left Adis (Ady) Golic, leader of the hard-rock biker band Skard, in July, he was facing serious charges under the Securities Act.
The Bosnian native was accused of illegally selling shares of AD Capital U.S. Inc. through a boiler room in Burnaby. He was also charged with misrepresenting the commercial prospects of the company's muffler technology.
Since then, Vancouver Provincial Court Judge Joseph Galati has convicted him of selling securities without being registered and without filing a prospectus, as required under the Securities Act.
The judge acquitted him of misrepresenting the muffler technology, even though an expert witness testified that it didn't work. He will be sentenced on Jan. 9.
Although these are Securities Act violations, rather than Criminal Code offences, and appear technical in nature, they are very serious. Golic's actions caused one elderly couple - both retired teachers - to lose $120,000, their entire life savings.
On this basis, I think it is clear that Crown counsel Mark Canofari will ask Galati for some meaningful jail time.
In last Saturday's column, I incorrectly stated that Vancouver stockbroker Dean Duke, who was disciplined by the Investment Industry Regulatory Organization of Canada for failing to obtain written trading authority from one of his clients, is now working at Canaccord Genuity.
In fact, he left that firm in January 2010 and is no longer working in the industry.
News By:
vancouversun.com
0 comments:
Post a Comment