a***@123.com
2006-07-11 12:45:47 UTC
June 28, 2006 THE WINDSOR STAR PAGE: A3
Tax verdict 'a one shot deal'
Law prof says Revenue Canada will pursue protester despite acquittal
Dave Battagello Windsor Star
Renegade tax fighter Jack Klundert may not be a criminal in the eyes
of the court.
But tax law experts on Tuesday pointed to the $900,000 seized from
him by the federal government as reason enough not to follow his path.
"If anybody does not pay taxes and then cites this case, they will
put themselves in a great deal of jeopardy," warned University of
Windsor law professor John Weir, who specializes in teaching income tax
issues.
A Superior Court jury ruled Monday the local optometrist was not
guilty of tax evasion despite his refusal to pay nearly $350,000 in
income taxes on about $1.5 million of earnings between 1993 and 1998.
Although Klundert avoided jail time or house arrest, Revenue Canada
will remain vigilant to pursue funds and penalties they say he owes,
Weir said.
"They are going to get their money anyway on the civil (litigation)
side," he said. "Just because you get off (on criminal charges), doesn't
mean you don't owe."
He called the Klundert decision a "a one-shot jury deal" and
"anomalous result."
The Income Tax Act's Section 239, which outlines tax evasion, is
"broad and bulletproof," he said.
"There is no deficiency in the act and you won't see it amended
because of this," Weir said.
"Perhaps it's an education of the jury thing. It's very difficult to
get any jury to the correct level (of knowledge about the income Tax
Act). You also can't take the emotional aspect over paying taxes to
Revenue Canada out of it (within the jury)."
Klundert said in court that his protest has cost him $900,000 in
penalties, garnished wages, a lien on his home and seized funds.
He did not respond Tuesday to a message left at his home seeking
comment.
Barbara Gal-Jagielski, spokeswoman for the Canada Revenue Agency
(CRA), said she did not want to discuss specifics about Klundert's case
because a possible court appeal is pending. The agency has until July 26
to file an appeal.
But anyone in Canada facing federal income tax criminal charges is
not excused from paying outstanding charges, she said.
The agency first makes every attempt to resolve disputes amicably,
but eventually will move to take legal action, she said. Garnisheeing
wages, seizure of assets and putting liens on property are among actions
outlined in the agency's official collection policy.
Klundert's lawyer, Doug Christie of British Columbia, said Tuesday
the case should spur Canadians to read the income Tax Act themselves and
"talk about the implications."
Klundert wrote zero income on his tax forms because he believed the
federal government had no constitutional right to pursue him, court was
told.
"You have to declare private information on a form, and if you don't
fill it out exactly the way they want, they charge you with a crime,"
Christie said. "Is this the society we want to live in?"
Powers of the tax authorities should be questioned, said Christie,
who described his client's actions as "resistance to tyranny" and a
"fight for freedom."
Federal prosecutor Michael Gordner said Tuesday he will recommend
that the Canada Revenue Agency appeal the ruling.
He agreed with Weir that no amendments are needed to the income Tax
Act as a result of this case.
John Williamson of the Canadian Taxpayers Federation has seen many
challenges to Revenue Canada, but nothing "as unique" as Klundert's.
"This case goes further," he said. "The premise is a bit troubling.
Our mandate is to push for lower taxes -- that doesn't mean no taxes.
"It's the duty of Canadians to pay as little as possible within the
law. I'd remind taxpayers Mr. Klundert is out $900,000 despite the
ruling.
"He's fighting the good fight, as is his right. But it's been at a
high cost."
Tax verdict 'a one shot deal'
Law prof says Revenue Canada will pursue protester despite acquittal
Dave Battagello Windsor Star
Renegade tax fighter Jack Klundert may not be a criminal in the eyes
of the court.
But tax law experts on Tuesday pointed to the $900,000 seized from
him by the federal government as reason enough not to follow his path.
"If anybody does not pay taxes and then cites this case, they will
put themselves in a great deal of jeopardy," warned University of
Windsor law professor John Weir, who specializes in teaching income tax
issues.
A Superior Court jury ruled Monday the local optometrist was not
guilty of tax evasion despite his refusal to pay nearly $350,000 in
income taxes on about $1.5 million of earnings between 1993 and 1998.
Although Klundert avoided jail time or house arrest, Revenue Canada
will remain vigilant to pursue funds and penalties they say he owes,
Weir said.
"They are going to get their money anyway on the civil (litigation)
side," he said. "Just because you get off (on criminal charges), doesn't
mean you don't owe."
He called the Klundert decision a "a one-shot jury deal" and
"anomalous result."
The Income Tax Act's Section 239, which outlines tax evasion, is
"broad and bulletproof," he said.
"There is no deficiency in the act and you won't see it amended
because of this," Weir said.
"Perhaps it's an education of the jury thing. It's very difficult to
get any jury to the correct level (of knowledge about the income Tax
Act). You also can't take the emotional aspect over paying taxes to
Revenue Canada out of it (within the jury)."
Klundert said in court that his protest has cost him $900,000 in
penalties, garnished wages, a lien on his home and seized funds.
He did not respond Tuesday to a message left at his home seeking
comment.
Barbara Gal-Jagielski, spokeswoman for the Canada Revenue Agency
(CRA), said she did not want to discuss specifics about Klundert's case
because a possible court appeal is pending. The agency has until July 26
to file an appeal.
But anyone in Canada facing federal income tax criminal charges is
not excused from paying outstanding charges, she said.
The agency first makes every attempt to resolve disputes amicably,
but eventually will move to take legal action, she said. Garnisheeing
wages, seizure of assets and putting liens on property are among actions
outlined in the agency's official collection policy.
Klundert's lawyer, Doug Christie of British Columbia, said Tuesday
the case should spur Canadians to read the income Tax Act themselves and
"talk about the implications."
Klundert wrote zero income on his tax forms because he believed the
federal government had no constitutional right to pursue him, court was
told.
"You have to declare private information on a form, and if you don't
fill it out exactly the way they want, they charge you with a crime,"
Christie said. "Is this the society we want to live in?"
Powers of the tax authorities should be questioned, said Christie,
who described his client's actions as "resistance to tyranny" and a
"fight for freedom."
Federal prosecutor Michael Gordner said Tuesday he will recommend
that the Canada Revenue Agency appeal the ruling.
He agreed with Weir that no amendments are needed to the income Tax
Act as a result of this case.
John Williamson of the Canadian Taxpayers Federation has seen many
challenges to Revenue Canada, but nothing "as unique" as Klundert's.
"This case goes further," he said. "The premise is a bit troubling.
Our mandate is to push for lower taxes -- that doesn't mean no taxes.
"It's the duty of Canadians to pay as little as possible within the
law. I'd remind taxpayers Mr. Klundert is out $900,000 despite the
ruling.
"He's fighting the good fight, as is his right. But it's been at a
high cost."