Two tax protesters sentenced to four years in jail for fraud

The Canada Revenue Agency (CRA) announced that Montréal residents Pierre Cardin and Jean-Marc Paquin, were both sentenced on March 9, 2021, to four years in jail. Cardin and Paquin were both found guilty on December 21, 2020, of one count of fraud under the Criminal Code, following a 20-week jury trial at the Superior Court of Quebec in Laval.

A CRA investigation revealed that, between May 2010 and May 2011, Cardin and Paquin who were part of a group related to tax protesters, advised and enabled 49 individuals to evade or try to evade a total of $1,057,880 in federal income tax by claiming non-deductible losses against their taxable income. The scheme is based on an argument made by tax protesters, which Canadian courts have repeatedly and consistently rejected.

All case-specific information above was obtained from the court records.

Tax protesters support the false notion that they do not have to pay tax on income they earn. Participating in a tax protester scheme can have serious consequences including criminal prosecution, jail time and fines. Between April 1, 2006, and March 31, 2020, 88 tax protesters were convicted of tax offences related to tax schemes, leading to a total of $8.24 million in court-imposed fines and 100 years of jail time. To learn more, visit Tax Protesters - Questions and Answers.

The CRA remains dedicated to maintaining the integrity of Canada’s tax system, as well as the social and economic well-being of Canadians during these unprecedented times. The CRA continues to aggressively pursue tax evasion and false claims with all tools available to them. The CRA is continuously working towards making sure that individuals and businesses claim income earned, eligible losses, and benefits to which they are entitled, so that important benefit programs can be administered to those who need them. As a result of COVID-19, we are seeing the increased importance of these benefits, and are working to make sure that they continue to be available to Canadians. Any individual or business who underreports income, or claims losses or benefits to which they are not entitled, including ineligible claims for COVID-19 benefits, may have to repay the benefit amounts and may be subject to other possible action.

The CRA has set up a free subscription service to help Canadians stay current on the CRA’s enforcement efforts.

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Associated Links

• Leads Program
• Voluntary Disclosures Program

Contact

Karl-Philip Marchand Giguere
Canada Revenue Agency
Telephone: 514-283-2628