Tax evasion has followed business models and is marketed and
even franchised to the Canadian public at large, but founders of 2
different tax evasion systems have recently been jailed. Mr.
Russell Porisky is the founder of Paradigm, a business which
counseled people across Canada to commit fraud through tax evasion.
In late July 2016 he was sentenced to five and a half years in
jail, and a fine of $259,482 for counseling others to evade taxes
and for income tax evasion. Paradigm essentially operated through a
franchise or multi-level marketing organization model and sold
products (books, DVDs, and CDs), organized and taught fee-based
seminars which educated people on how to structure their affairs in
a way to illegally avoid taxes, in other words to commit criminal
tax evasion. Paradigm Education Group follows their teachings that
"natural persons" do not have to pay income tax, a theory
referred to as "nonsense" by the courts.
More than 30 individuals have been convicted of criminal tax
evasion offences and received significant fines and jail sentences
directly related to their participation with Paradigm. This
includes a "franchisee" Donald Baudais who was sentenced
in 2014 to pay fines equal to 100% of tax and GST evaded, and 6
months in jail, for promoting Paradigm, even though his spouse is
suffering from the aftermath of brain cancer.
Another highly marketed tax evasion scheme is Fiscal Arbitrators
and also operated as a franchise using DSC Lifestyles Services. The
owner and operator of Fiscal Arbitrators, Lawrence Watts of
Markham, Ontario was sentenced this past June to six years
imprisonment plus a fine of $149,129. Fiscal Arbitrators had no
bogus theories to rely on – they just sold bogus tax
A detailed summary of most known de-taxer tax scams (tax evasion
schemes that claim there is no obligation to file or pay taxes) was
given in the 2012 family law judgment of Meads v Meads by
Alberta Associate Chief Judge Rooke. He said that all de-taxer tax
evasion schemes boil down to making a claim that an individual does
not have to pay taxes because they are neither under the
court's nor government's jurisdiction.
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