I said at the beginning of the Porisky compilation;
This discussion is somewhat redundant because it just compiles information posted elsewhere on Quatloos but I thought it time to have one omnibus reference point so that anyone seeking information on the Russell Porisky tax evasion scheme and the results for its followers has a starting point to all of the Porisky related information in Quatloos. Part of the problem is my own ineptitude. When I started posting on Porisky type tax evasion cases I often buried the information, almost as casual points of interest, in unrelated discussions. As a result two of the most important evasion convictions, that of Porisky himself, and Eva Sydel, were buried in the "The infection is heading north!" discussion, my first posting in Quatloos.
I've now reached the same point on the Fiscal Arbitrator tax evasion scheme. There are enough of them already reported, with more on the way, to require that I put them in some kind of easily referenced order. The titles I gave the discussions are, in some cases, just stupid. I only realized when collating the discussions that I had two separate topics under virtually identical titles, "Fiscal Arbitrators Strikes Out Again!" and "Fiscal Arbitrators Strikes Again!". So, time to rectify.
First the cases with the names of the individuals involved in the discussion, a brief explanation of the case, and the link to the discussion. I'll include an analysis (as best I can determine it) of the Fiscal Arbitrator scheme at the end of this post but that will have to wait for a bit. I have a backlog of Fiscal Arbitrator decisions to post yet and I'll do an analysis of the scheme along with information on the promoters after they are done.
Essentially Fiscal Arbitrators prepared the returns for the taxpayers and claimed false business expenses for non-existent businesses. The claimed expenses grossly exceeded the taxpayer's incomes. All participants in the scheme were reassessed disallowing the claimed expenses and also assessed gross negligence penalties. The penalties were very costly since they were 50% of the taxes assessed. Virtually all of the cases listed below are in respect to appeals of the penalties. None have succeeded. A few appellants, like Ian Brown and Carrol Strachan, also appealed the disallowance of the expenses. However both of these individuals refused to provide the court with any information on their claimed businesses and refused to substantiate any of the claimed expenses.
Donna Marie Stancer - A New Age Tax-Avoiding Sovereign
Donna Marie Stancer
Deanna Lynn Lavalley
In 2010 Stancer and Lavalley started a tax consultation company called DeMara Consulting Inc and filed 363 income tax returns on behalf of 224 clients. The filings claimed $192 million in claims of false business and capital losses. The losses gave rise to claims of $9.9 million in refunds to which clients were not entitled.
Lavalley was found guilty of making false statements in her income tax returns for the years 2007 to 2010, claiming false capital and business losses totaling more than $450,000 and claiming false capital and business losses in the income tax returns of other persons in order to obtain refunds totaling close to $10 million. She was sentenced to a 22 months conditional sentence to be served in her home and a fine of $17,000.
Stancer was found guilty of making false statements in her tax returns for the years 2007 and 2010 by claiming false capital and business losses totalling more than $1.8 million and counselling others to commit fraud in excess of $5,000. She has not yet been sentenced.
A Double Header of Canadian tax dodgers
The above individuals are unrelated. This discussion initially started by reviewing Haynes and McLeod and expanded to cover the other individuals. Links to all of their Tax Court decisions are provided in the discussion.
Fiscal Arbitrators Strikes Out Again!
Mary Khristine Torres
This was a joint appeal to the Tax Court of Canada. The issue was the gross negligence penalty the taxpayers were assessed in addition to disallowance of all of their fiscal arbitrator claims. The court confirmed the penalties. Carrol Strachan appealed this to the Federal court of Appeal. Her appeal was denied.
Mario Goyette: managing his strawman for your fun & profit!
It's hard to tell if this is a Fiscl Arbitrator case, the judgment (in French) doesn't refer to Fiscal Arbitrators, but it has all the hallmarks. Mr. Goyette also employed various freeman type arguments in tryig to avoid paying his taxes.
Another Fiscal Arbitrators DOA
Mr. Brown lost appeals at both the Tax Court of Canada and the Federal Court of Appeal.
More Fiscal Arbitrator Fallout
In 2009 Bolduc claimed business expenses of $427,337 and business income of $100,210. There was no business. He tried to defend himself against the gross negligence penalty by claiming that he was acting in a reasonable manner because so many people, other than himself, fell for the same scheme. He apparently abandoned his appeal before a hearing.
What is of interest in this case is that the scheme he followed was promoted by Solutions 21 Financial. It is my understanding that Solutions 21 was a successor to Fiscal Arbitrators that was sold as "The Solution". There was a hub promoter and a number of subordinate gurus who promoted "The Solution". As I understand it "The Solution" was promoted in large part to people who had tried Fiscal Arbitrators and been reassessed.
A google search shows this Better Business Bureau report on Solutions 21;
BBB file opened: 25/02/2011
Principal: Alex Di Mauro Ingram Jeffrey Eshun (Director)
Alternate Business Names
DSC Lifestyle Services, Trem DY Group, Tax Arbitration Bureau, Fiscal Arbitrators
According to information in the BBB files, it appears that the company is no longer in business. The phone numbers the BBB had for this company are disconnected, and directory assistance does not have a listing for this company. The BBB's mail to this company has been returned as undeliverable. If you have an unresolved dispute with this company you may wish to seek legal advice. - See more at: http://www.bbb.org/kitchener/business-r ... P4RrU.dpuf
Fiscal Arbitrators Strikes Again!
Rasper I. Atutornu
Peace Q. Atutornu
A married couple appealing the gross negligence penalty. The appeal was Dismissed.
A Bussload of Fiscal Arbitrators Takes on the Tax Court
When I said bussload I meant it! Fifty-four appellants; so I'm not listing them. You can find the names in this link to the Tax Court docket.
These individuals are not appealing the disallowance of the fake business expenses that Fiscal Arbitrators included in their income tax returns. It appears that they are only appealing the gross negligence penalty. While most of the Fiscal Arbitrator appellants are self-represented this group had banded togethe to retain legal counsel. The last entry on the docket was June 2014 so the appeals may have been dropped.
Another Poriskyite Loser, in French!
As you can tell from the title I originally posted this as possible application of Russell Porisky's Paradigm tax avoidance scheme. At the time all I had was the French version of the decision, hence the title. After reading the decision in English I've concluded that it is more likely a Fiscal Arbitrator application. Gerard claimed deductions from his taxable income for expenses that included food, fuel, housing, health care and travel. This is more in line with Fiscal Arbitrators than Paradigm because the Paradigm position that individuals are not taxable at all so expenses would be irrelevant.
Myrtle Robichaud - Single mother gets help from Fiscal Arbitrators
Myrtle claimed a false $354,351 business loss against her taxable income based on Fiscal Arbitrator bullshit. The CRA denied the loss and hit her with a gross negligence penalty of $46,699. She appealed the imposition of the penalty and her appeal was dismissed with costs awarded against her.