(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

Pets still missing after Peachland home fire

Two Pomeranians and two cats are missing after fire

Okanagan-Shuswap weather: A sunny Easter Sunday

Temperatures will peak at approximately 20C region-wide

Petition to stop new cell tower too close to Kelowna homes

An online petition was started to stop cell tower construction near Ellison Elementary School

Local Kelowna project tabs restaurant workers for industry fundraiser

The 2nd Hungry Games invites fundraises for local charities

‘No answers:’ Canadians react to Sri Lanka bombings that killed hundreds

The co-ordinated bomb attacks killed at least 207 people and injured 450 more on Easter Sunday

Regional district backs more consultation on plans to help caribou

It is feared that the caribou recovery plans could result in closure of backcountry areas

Okanagan student shows skill at provincial finals

Aidan Eglin of Armstrong won website development event at Skills Canada’s B.C. finals in Abbotsford

Kootnekoff: Easter Bunny legal woes

Several years ago, our young daughter needed to know: “Is Santa Claus… Continue reading

Okanagan fire department rescues kittens

Enderby homeowner not aware cats were in wood pile in yard near garbage pile fire that got away

Okanagan township’s open burning winds down

Spallumcheen reminds residents of regulation changes as open burning concludes April 30

QUIZ: How much do you know about Easter?

Take this short quiz and put your knowledge to the test

B.C. VIEWS: NDP’s lawyer show is turning into a horror movie

Court actions pile up over pipelines, car insurance, care aides

Most Read