Tax evasion has become organized business and is sold and even
franchised to Canadian public taxpayers. However the founders of 2
different tax evasion schemes that were widely marketed in Canada
have recently been jailed.
Mr. Russell Porisky is the founder of Paradigm Education Group
and 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 commit income
tax evasion and for his own income tax evasion.
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 or FA was
another heavily marketed Canadian tax evasion scheme is it was also
operated as a franchise using DSC Lifestyles Services.
Both of Paradigm and Fiscal Arbitrators are businesses which
counseled taxpayers across Canada to commit tax fraud through
income tax evasion. Paradigm in effect operated through a
multi-level marketing organization or franchise model and sold
products and organized and taught fee charging seminars which
instructed Canadians on how to improperly structure their affairs
in a way to illegally avoid taxes, in other words to commit
criminal tax evasion. Paradigm follows the teachings of certain tax
protestor groups or de-taxers that "natural persons" do
not have to pay income tax, a discredited theory referred to as
"nonsense" by the courts. Fiscal Arbitrators had no false
tax theories to rely on – they just sold non-existent tax
These tax evasion schemes have serious implications for Canadian
taxpayers. Over 30 individuals have been convicted of criminal tax
evasion and received significant tax fines and jail sentences
directly related to their participation with Paradigm, and others
have been convicted of tax evasion due to Fiscal Arbitrators . This
includes a Paradigm "franchisee" Donald Baudais who was
sentenced in 2014 to tax fines equal to 100% of tax and GST evaded,
and to 6 months imprisonment, for promoting Paradigm, even though
his spouse was suffering at the time from the aftermath of brain
Many honest Canadians have fallen victim to these tax evasion
schemes and have ended up having to pay tax fines for tax fraud. If
you have participated in a tax evasion scheme but have not been
audited by CRA you may qualify for the CRA Voluntary Disclosure
Program (VDP) or tax amnesty. Even if you deliberately committed
income tax fraud you can still apply for voluntary disclosure tax
relief and avoid tax prosecution and tax penalties. Our Canadian
tax law firm has helped individuals and businesses who were duped
into tax denier tax evasion schemes, including some who have served
jail time, to come back into the Canadian income tax system.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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