Vancouver: The Canada Revenue Agency (CRA) announced that Michael Spencer Millar of North Vancouver, British Columbia, was sentenced on February 28, 2017, in the Supreme Court of British Columbia to two and a half years in jail and fines totaling $24,000. Mr. Millar was convicted and sentenced in relation to charges of income tax evasion, goods and services tax (GST) evasion, and counselling fraud.
A CRA investigation determined that Mr. Millar failed to report total income of $126,431 for the 2004 to 2008 tax years and, as a result, evaded $12,381 in federal income tax payable. In addition, Mr. Millar failed to collect and remit $11,874 in GST for the 2005 to 2008 tax years.
Mr. Millar was an “educator” with the Paradigm Education Group (Paradigm), a fraudulent scheme which counselled people across Canada to evade taxes. Paradigm 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. The Judge stated that Mr. Millar deliberately encouraged his students to file false income tax returns by not declaring their taxable income.
The preceding information was obtained from the court records.
The CRA warns all Canadians to beware of “tax protesters” who try to convince you that Canadians do not have to pay tax on the income they earn. Canadian courts have repeatedly and consistently rejected arguments made in these tax protester schemes. For those involved in tax protester schemes, the CRA will reassess income tax and interest, and charge penalties. In addition, if convicted of tax evasion, the court may fine them up to 200% of the tax evaded and sentence them for up to a five-year jail term. More information on tax protester schemes is available at www.cra.gc.ca/alert.
If you have ever made a tax mistake or omission, the CRA is offering you a second chance to make things right through its Voluntary Disclosures Program (VDP). If you make a valid disclosure before you become aware that the CRA is taking action against you, you may only have to pay the taxes owing plus interest. More information on the
VDP can be found on the CRA’s website at www.cra.gc.ca/voluntarydisclosures.