(Black Press Media files)

CRA wins appeal against Nanaimo 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

House fire displaces family of five in Nanaimo

Dog and cat still unaccounted for following house fire on East Wellington Road on Monday

POLL: How often do you see motorists throw cigarette butts out the window?

How often do you see motorists throw lit cigarette butts out the… Continue reading

LETTER TO THE EDITOR: Bike and hike elsewhere

Letter writer disappointed in Nanaimo council for even considering discussing military range access

Editorial: Make it out to the night market this summer

First Commercial Street Night Market of the summer is this Thursday, June 20

Nanaimo Ladysmith school district will seek input on strategic plan

Stated goals include reconciliation and environmental stewardship

Man suffers burns, dog dies in fire in Nanaimo

Structure burns down on Clifford Road property in Cedar

UPDATE: Two-year-old involved in Chilliwack pool drowning has died

Toddler was reported to not be breathing as air ambulance called out Thursday afternoon

Police make arrest after report of a man brandishing a gun at Campbell River-area lake

43-year-old man from the Comox area has since been charged with multiple offences

B.C. high school withdraws notices for temporary dress code

Parents previously told the Interior News they felt there was inadequate consultation over the rules

VIDEO: Toronto Raptors announcer credited with calming crowds after shooting

Matt Devlin, the Raptors’ play-by-play announcer since 2008, was praised for preventing panic from spreading

Mini-horse visits residents at Lower Mainland care home

Gunner turned a visit with grandpa into a major event for everyone at the residence

LETTER TO THE EDITOR: Improving transit will make a difference in a climate emergency

Transit helps take cars off the road, ease congestion and improve air quality, says letter writer

Suicide confirmed in case of B.C. father who’d been missing for months

2018 disappearance sparked massive search for Ben Kilmer

Women sue former Vancouver cop over alleged sexual abuse during pimp case

Two women claim James Fisher caused psychological trauma during the Reza Moazami investigation

Most Read