The BC Supreme Court has sentenced Chilliwack resident Russell Anthony Porisky to four-and-a-half years in jail and fined him $274,815 for one count of counselling others to evade taxes and two counts of tax evasion, the Canada Revenue Agency (CRA) has announced.
According to the CRA, Porisky created the Paradigm Education Group, which counseled people to commit fraud by evading tax. Paradigm sold books and DVDs and offered fee-based seminars teaching the “natural person” argument.
According to Porisky, a person can be either a “natural person” or an “artificial person,” where a “natural person” can act for their own benefit and not for profit.
The courts rejected this argument as they have consistently done before.
The courts also noted the some of Porisky’s former students, who followed his teachings, have been convicted of tax evasion and sentenced to jail time.
According to the CRA, Porisky and common-law spouse Elaine Gould failed to report a total of $1,127,185 in taxable income for the 2004 to 2008 tax years, evading $237,989 in federal income tax. Porisky further failed to collect and remit $66,133 in goods and service tax, according to the CRA.
Gould has been fined $27,434 and received a six-month conditional sentence order.
The CRA categorizes claims such as those made by Porisky as tax myths.
“Individuals who plan to use the tactics of tax protestors should know that this could have significant personal and financial consequences, including fines, imprisonment or seizure of goods,” the CRA said in a statement.
