The owners of MGM Restaurant were awarded almost $1.7 million by the Supreme Court of B.C. in a lawsuit against the Canada Revenue Agency. (BLACK PRESS file photo)

Restaurant owners awarded $1.7M in lawsuit against Canada Revenue Agency

Supreme Court of B.C. justice finds CRA investigators were gleeful about anticipated prosecution

The owners of MGM Restaurant were awarded almost $1.7 million by the Supreme Court of B.C. in a lawsuit against the Canada Revenue Agency.

In a ruling Friday, Justice Robert Punnett found the CRA “vicariously liable” for the conduct of an investigator in prosecuting Tony and Helen Samaroo for tax evasion and found that the CRA’s conduct was “high-handed, reprehensible and malicious.”

In 2008, the Canada Revenue Agency issued an indictment against the Samaroos for allegedly skimming $1.7 million between 2004-2005 via incomplete reporting of sales summaries. However, the Samaroos were acquitted in 2011 after they were able to plausibly explain their bookkeeping.

In e-mailed communications during the investigation leading up to that trial, CRA employees joked about potential news coverage of a guilty verdict and whether it would “call for a guillotine.”

The Samaroos commenced their lawsuit in 2012, positing that CRA employees initiated a prosecution “without reasonable and probable grounds and with malice,” according to last week’s judgment. The defendant argued that there was no evidence to suggest that there wasn’t “reasonable and probable cause” for prosecution, “nor is there evidence that the defendants acted for a purpose other than to place the case before the court for adjudication.”

Punnett wrote in his judgment that after CRA employees “looked forward with unprofessional glee to the plaintiffs’ anticipated conviction and sentencing and their resulting ruination.”

Tony and Helen Samaroo, who no longer live together, were awarded $300,000 each in punitive damages and were awarded $750,000 in punitive damages and $347,732 in legal expenses.

The justice noted that “no amount of punitive damages will cause the CRA financial hardship.”

Just Posted

Finalists announced for Nanaimo Sport Achievement Awards

Winners will be honoured at an awards gala Friday, Feb. 22 at the Coast Bastion Hotel

Nanaimo Clippers beat league’s best team on trip

Clippers get past the Chilliwack Chiefs 2-1 as BCHL regular season winding down

Coldest Night of the Year walk supports people in Nanaimo experiencing homelessness

Island Crisis Care Society event takes place on Saturday, Feb. 23

Four Nanaimo athletes make Team B.C. for Canada Winter Games

Judo, synchronized swimming and boxing athletes qualify for games in Red Deer, Alta.

Buccaneers break a third-period tie to beat Generals

Nanaimo doubled up Oceanside 2-1 on Sunday in VIJHL action

Trudeau’s principal secretary, Gerald Butts, resigns amid SNC-Lavalin furor

Butts categorically denies the accusation that he or anyone else in the PMO improperly pressured former attorney general Jody Wilson-Raybould

Lost a ring? This B.C. man will find it for you

Chris Turner founded The Ring Finders, an international directory of metal detector hobbyists

Poverty coalition has high hopes for B.C. poverty reduction strategy

Funding allocation expected to be released with 2019 budget

‘How did we get here?’: B.C. mom of transplant recipient worries about measles outbreaks

Addison, 7, cannot get a live vaccine because she has a heart transplant

Steelhead LNG stops work on Kwispaa LNG project near Bamfield

Huu-ay-aht First Nations ‘deeply disappointed; Steelhead says funding is the problem

NDP Leader Jagmeet Singh calls for public inquiry over SNC-Lavalin questions

Vancouver member of Parliament Jody Wilson-Raybould resigned from cabinet last week

Canadian airlines waiting for guidance from Ottawa over X gender option

Major U.S. airlines said they will change their process so passengers can identify themselves along non-binary lines

Moose Hide campaign takes message to Canadian schools

Campaign launches new K-12 education platform

Atlantic Canada rock band Partner making Nanaimo debut this week

Polaris Prize-nominated band from Sackville, N.B. embarking on first West Coast tour

Most Read