bellcrank88
21st Oct 2007, 19:26
:= Looks like a few of our North American based pilots could be taking some time off work in the future.
Former city dentist jailed 18 months for tax evasion
Michael Kane, Vancouver Sun
Published: Saturday, October 20, 2007
A former Vancouver dentist who argued that Ottawa has no power to levy taxes was sentenced Friday to 18 months in jail, one of the longest terms for tax evasion imposed in recent Canadian history.
Nelson resident Eva Sydel is appealing her conviction and has been granted bail.
Sydel failed to report more than $996,000 in professional income earned between 1998 and 2003 by independently contracting her dental services to other practicing dentists.
In her defence, she argued that she is a "natural person" -- rather than a taxpayer -- and is not bound by the Income Tax Act to file income tax returns, nor pay any income tax.
The prosecution cited eight previous Canadian cases where the courts have rejected the "natural person" defence promoted by tax protesters and self-described "de-taxers," who argue that tax laws are not legitimate.
During sentencing at Vancouver Provincial Court Friday, Judge P. R. Meyers stated: "It seems to me that this type of crime and this type of individual, as Dr. Sydel is, is precisely the type of crime and individual that society must, when they look at it, say, 'How can somebody go for so many years, earning so much money, not paying a dime in taxes, be it through the process of delay and then bankruptcy, and yet use everything that Canada has to offer by way of free facilities?'
"People have to look at that and say that the only appropriate punishment for somebody like this is a jail sentence."
Sydel was also fined $244,446 as a result of her conviction on July 11, 2006, on four counts of making false or deceptive statements on her personal income tax returns, and five counts of wilfully evading the payment of federal income taxes. The fine represents about 96 per cent of the federal tax evaded.
In his reasons for judgment, Meyers wrote: "It is my finding that the accused's mistake was the direct result of her own wilful blindness. The accused's mistake was not a result of the 'notoriously complex' nature of the Income Tax Act, but rather, from a very basic mistaken belief about one of the most basic, straightforward and uncomplicated features of the Income Tax Act -- that human beings are 'persons' and persons who earn income have to pay income taxes."
He added that Sydel, whom he described as an intelligent and well-educated 39-year-old woman brought up in Austria, Germany and Canada, failed to use the procedures available to her under the Income Tax Act to test and determine the validity of her beliefs.
"Instead of using these procedures, she decided to simply refuse to pay the taxes, be criminally charged, and then raise the defence of mistake of law or mistake of mixed fact and law at her criminal trial. She deliberately chose her route."
Doug Christie, Sydel's defence lawyer, said "the issue of a mistake in law constituting a possible defence" is coming up again in the Ontario Court of Appeal, where another accused has twice been acquitted of tax evasion.
"If you can make an honest mistake in law, then the element of intent on evasion may be in doubt," he said in an interview Friday.
He also said there are "important considerations of the propriety of a jail term for a first offence. I think it would be appropriate to take a different view than was taken by the trial judge."
[email protected]
Former city dentist jailed 18 months for tax evasion
Michael Kane, Vancouver Sun
Published: Saturday, October 20, 2007
A former Vancouver dentist who argued that Ottawa has no power to levy taxes was sentenced Friday to 18 months in jail, one of the longest terms for tax evasion imposed in recent Canadian history.
Nelson resident Eva Sydel is appealing her conviction and has been granted bail.
Sydel failed to report more than $996,000 in professional income earned between 1998 and 2003 by independently contracting her dental services to other practicing dentists.
In her defence, she argued that she is a "natural person" -- rather than a taxpayer -- and is not bound by the Income Tax Act to file income tax returns, nor pay any income tax.
The prosecution cited eight previous Canadian cases where the courts have rejected the "natural person" defence promoted by tax protesters and self-described "de-taxers," who argue that tax laws are not legitimate.
During sentencing at Vancouver Provincial Court Friday, Judge P. R. Meyers stated: "It seems to me that this type of crime and this type of individual, as Dr. Sydel is, is precisely the type of crime and individual that society must, when they look at it, say, 'How can somebody go for so many years, earning so much money, not paying a dime in taxes, be it through the process of delay and then bankruptcy, and yet use everything that Canada has to offer by way of free facilities?'
"People have to look at that and say that the only appropriate punishment for somebody like this is a jail sentence."
Sydel was also fined $244,446 as a result of her conviction on July 11, 2006, on four counts of making false or deceptive statements on her personal income tax returns, and five counts of wilfully evading the payment of federal income taxes. The fine represents about 96 per cent of the federal tax evaded.
In his reasons for judgment, Meyers wrote: "It is my finding that the accused's mistake was the direct result of her own wilful blindness. The accused's mistake was not a result of the 'notoriously complex' nature of the Income Tax Act, but rather, from a very basic mistaken belief about one of the most basic, straightforward and uncomplicated features of the Income Tax Act -- that human beings are 'persons' and persons who earn income have to pay income taxes."
He added that Sydel, whom he described as an intelligent and well-educated 39-year-old woman brought up in Austria, Germany and Canada, failed to use the procedures available to her under the Income Tax Act to test and determine the validity of her beliefs.
"Instead of using these procedures, she decided to simply refuse to pay the taxes, be criminally charged, and then raise the defence of mistake of law or mistake of mixed fact and law at her criminal trial. She deliberately chose her route."
Doug Christie, Sydel's defence lawyer, said "the issue of a mistake in law constituting a possible defence" is coming up again in the Ontario Court of Appeal, where another accused has twice been acquitted of tax evasion.
"If you can make an honest mistake in law, then the element of intent on evasion may be in doubt," he said in an interview Friday.
He also said there are "important considerations of the propriety of a jail term for a first offence. I think it would be appropriate to take a different view than was taken by the trial judge."
[email protected]