(Black Press Media files)

CRA wins appeal against B.C. couple who alleged ‘malicious’ tax evasion probe

A lower court had handed down a $1.7M award to the couple earlier

The British Columbia Court of Appeal has set aside a $1.7-million damage award to a Vancouver Island couple who a lower court had said were ruined through the “malicious” actions of the Canada Revenue Agency.

Tony and Helen Samaroo were operating a restaurant, night club and motel in Nanaimo in 2008 when they were charged with 21 counts of tax evasion for allegedly skimming $1.7 million from their businesses.

They were acquitted of all charges in provincial court in 2010 in what the judge hearing the case agreed amounted to the Crown using “voodoo accounting” to support its case, and the couple then sued for malicious prosecution.

A B.C. Supreme Court judge ruled last year that the Samaroos were the victims of an “egregious” prosecution based on an unfounded theory and suspicion about the alleged tax evasion.

READ MORE: Restaurant owners awarded $1.7M in lawsuit against Canada Revenue Agency

But in a decision released Tuesday on behalf of the three-judge panel, Justice David Harris says the trial judge was wrong to base his analysis on the idea that tax evasion can’t be proven without also proving exactly how it was done.

As a result, Harris says the judge dismissed some relevant evidence as “mere hypothesis,” instead of recognizing there was a reasonable and probable cause to launch a case.

Because the analysis was faulty, Harris says it’s unnecessary to look at whether the trial judge erred in his conclusion that the Crown was motivated by malice or the investigator for the Canada Revenue Agency acted for an “improper purpose.”

“When the correct legal test is applied properly to the elements of the offence, with a correct onus of proof in a claim of malicious prosecution, and viewing the issue objectively, the Samaroos cannot succeed in showing that there was an absence of reasonable and probable cause to initiate and continue the prosecution,” the decision says.

The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

Latest round of Columbia River Treaty talks wrap up in Cranbrook

Federal, provincial, U.S. and Indigenous representatives recently met for eight round of discussions

First Nations given max compensation for Ottawa’s child-welfare discrimination

2016 ruling said feds didn’t give same funding for on-reserve kids as was given to off-reserve kids

Active life is family affair for Castlegar mom-and-daughter athletes

Two generations taking part in 55+ Senior’s Games

People’s Party candidate in South Okanagan-West Kootenay steps forward

Taylor talks about PPC platforms on economics, immigration and climate change

South Okanagan-West Kootenay candidates ready for federal election campaign

Here are the candidates running in the South Okanagan-West Kootenay riding

VIDEO: Liberals make child care pledge, Greens unveil platform on Day 6 of campaign

Green party leader Elizabeth May unveils her party’s platform in Toronto

Winnipeg student, killed in bus crash, remembered as passionate, kind

University of Victoria student Emma Machado, 18, was killed in the bus crash near Bamfield on Friday

Boy overdosed on illicit anti-anxiety drug found on Kelowna classroom floor, RCMP say

Noah Mills, 8, ingested a pink powdery substance off his Kelowna classroom floor

Fewer trees, higher costs blamed for devastating downturn in B.C. forestry

Largest driving factor is the province’s complex stumpage system that results in high fees, expert says

20 day search for missing Labradoodle in Princeton, B.C. ends with tears of joy

The search brought out bloodhounds, and groups hoping to find Mordy

Canucks sign Brock Boeser to three-year, US$17.6-million deal

Young sniper will be in Vancouver Tuesday

B.C. forest industry looks to a high-technology future

Restructuring similar to Europe 15 years ago, executive says

RCMP conclude investigation into 2017 Elephant Hill wildfire

Files have been turned over to BC Prosecution Service

Most Read