A “human being” is fined $43,830 for tax evasion

In a recent news release CRA officials notified that James Bradford Medd 67, (a human being) was found guilty in Ontario Court of Justice in Lindsay on Sept. 21 on four counts each of Income Tax and Goods and Services Tax (GST) evasion, relating to tax years 2003 through 2006.

On Wednesday (Sept. 29), he was fined $43,830, and given one year to pay the fine.

The CRA investigation into his bank and business records stemmed from a routine audit and included an execution of a search warrant at his residence.

The investigation revealed that from 2003 to 2006, Mr. Medd failed to report a total income of $208,288 on his T1 returns, thereby attempting to evade $29,580 in federal taxes. By failing to file GST returns for the same period, he attempted to evade an additional $14,250 in GST.

Officials say the fine, representing 100 per cent of the total taxes evaded, is in addition to any taxes owed, as well as any interest and civil penalties that may be assessed by the CRA.

During the trial, Mr. Medd stated to the court that CRA had “no jurisdiction or authority” over him as “a human being”. A claim that the Income Tax Act applies only to corporate entities, and not to “natural” persons or human beings, is a myth that has been rejected by Canada’s courts, CRA officials stated in the news release.

A number of individuals and groups are actively promoting claims that there are lawful ways to declare oneself exempt from tax. The CRA reminds Canadians that relying on such “advice” could result in anything from late-filing penalties and interest imposed by the CRA to fines and imprisonment imposed by the courts — in addition to having to pay the taxes owed.

So, if you are someone, who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They will not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the Canada Revenue Agency (CRA) against them.

Contact your Tax Advisor if you are in a situation like Mr. Medd.