Bribe Allegations hit Canada Revenue Agency : CRA SOTW

Tax Dispute Heats Up

Written by Frank Peebles, Citizen Staff
http://www.princegeorgecitizen.com/20091214999920824/local/news/tax-dispute-heats-up.html

Monday, 14 December 2009

Million-dollar tax miscalculations caused Irvin Leroux to lose everything he owned, but a tax official also offered to end his tax troubles for a personal fee.

This is the latest accusation by a Prince George man who was, by Canada Revenue Agency's own admission (proven in court once already), the victim of an incorrect tax bill.

The events began with an audit of Leroux's books in 1995, but CRA officials accidentally shredded all his documents, but forged ahead with claims that Leroux owed the federal government enormous amounts of money - about $1 million.

He fought back, insisting that he had always fastidiously paid his taxes.

In 2005 the CRA dropped their claim that Leroux owed them any money at all. In fact, they discovered in the process he had actually overpaid $24,000 in taxes and was entitled to a refund. They paid him that amount (then took it back immediately for an outstanding GST bill). Yet the CRA refused to compensate him for all his losses as a result of the years-long fight. Leroux lost his home, his business (an RV park near Valemount), land with timber, a housing subdivision, his life savings, and other assets, not to mention his credit rating and potential earnings. According to a Statement of Claim Leroux filed in Prince George court in 2006, his losses equaled more than $4 million.

To properly fight for his lost assets, Leroux asked for copies of all documents the federal government had that pertained to his taxes. He and his lawyer received a shipment of 2,500 pages of material, most of it heavily censored.

One part wasn't blacked out though, said Leroux, and it was the most important part of the whole ordeal. It was a piece of paper that allegedly points out a corruption incident. It is now a major part of a vastly new Statement of Claim that was just handed in to Prince George court last week. The Citizen got the first look at it, outside of the legal groups on either side of the issue. In it was a damning allegation that involved a Prince George tax official named Hansen (now deceased):

“On Dec. 23, 1998 Hansen telephoned the plaintiff (Leroux) and requested another meeting to discuss the resolution of (Leroux's) tax problems,” said the revised Statement of Claim. “The plaintiff met with Hansen at which time Hansen advised the plaintiff he could resolve the plaintiff's ‘tax problem’ if the plaintiff would pay $25,000 cash to Hansen personally. The plaintiff refused, whereupon Hansen stated that he should reconsider, failing which the plaintiff would encounter significant, costly problems with the (CRA).”

This week in Prince George court the CRA's lawyers attempted to quash the proceedings, insisting that too many delays were unfair to the tax agency. They also asked Mr. Justice Eric Chamberlist to officially declare Leroux as the one who should bear all court costs if he ultimately loses the case.

Not so fast, Chamberlist said on both accounts.

“I am of the opinion that this plaintiff should have his day in court,” the judge said.

He allowed both sides to adjourn for several weeks to properly prepare their cases in light of the new allegations. He also deferred the issue of court costs until farther into the proceedings.

“I can understand the position of the defendant with regard to now having to face amended pleadings from those originally filed,” said Chamberlist. “But by the same token I am concerned that the court not deal with issues raised by the plaintiff in his claim without a proper hearing, and all matters being heard.”

A date is now being fixed between the lawyers for some time later this winter.

Chamberlist gave the CRA lawyers up to 30 days to revise their defense documents. When those are submitted, Leroux and his lawyer would have up to 14 days to prepare their counter-position. At the end of this back-and-forth, they will return to Prince George court and continue on with the flow of proceedings.

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If you’re not up to speed on Irvin Leroux’s Tax Tale you can refresh your memory via the following links:

CRA Bankrupts BC Couple Over Nothing Part 1 of 2 :CRA SOTW
http://groups.google.com/group/can.taxes/browse_thread/thread/559cea95d252dc/a402a74aaa4f432f?q=

CRA Bankrupts BC Couple Over Nothing Part 2 of 2 :CRA SOTW
http://groups.google.com/group/can.taxes/browse_thread/thread/bdde6e32ab007b87#

Irvin Leroux’s Sane Response to CRA’s Insane $5 Million Dollar Mistake :CRA SOTW
http://groups.google.com/group/ns.general/browse_thread/thread/7f4ca87772996bfb/edecb774f6fc8bb9?q=

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Alan Baggett – Tax Collector’s Bible