R. v. Gaudet (Y.), (1998) 202 N.B.R.(2d) 301 (PC)

• Judge: Lampert, P.C.J.
• Court: Provincial Court of New Brunswick (Canada)
• Case Date: June 29, 1998
• Jurisdiction: New Brunswick
• Citations: (1998), 202 N.B.R.(2d) 301 (PC)

R. v. Gaudet (Y.) (1998), 202 N.B.R.(2d) 301 (PC);

    202 R.N.-B.(2e) 301; 516 A.P.R. 301

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[French language version follows English language version]

[La version française vient à la suite de la version anglaise]

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Temp. Cite: [1998] N.B.R.(2d) TBEd. JL.023

Her Majesty The Queen v. Yvon Gaudet

Indexed As: R. v. Gaudet (Y.)

New Brunswick Provincial Court

Judicial District of Moncton

Lampert, P.C.J.

July 3, 1998.

Summary:

The accused pleaded guilty to five charges of making false or deceptive statements in his income tax return in violation of s. 239(1)(a) of the Income Tax Act.

The New Brunswick Provincial Court fined the accused $219,000 (i.e., the amount of the tax sought to be avoided). In default of payment, the accused would serve a total of 60 months' incarceration.

Income Tax - Topic 9681

Tax evasion and tax avoidance - Punish­ments - General - Considerations - Gaudet pleaded guilty to five charges of making false or deceptive statements in his income tax returns in violation of s. 239(1)(a) of the Income Tax Act - Over the five year period, Gaudet reduced his taxes by $219,000 - The scheme involved one of his companies selling seafood in the United States and diverting the proceeds to Gaudet personally - The scheme was described as "brilliant and sophisticated" - Gaudet was motivated only by greed - In imposing sentence, the New Brunswick Provincial Court held that it would take into consider­ation the $93,000 avoided in the first year (for which the Crown had not charged Gaudet on the original information for tax evasion) and the civil assessments exceed­ing $1.8 million - See paragraphs 21 to 25.

Income Tax - Topic 9684

Tax evasion and tax avoidance - Punish­ments - Sentence - Imprisonment - Gaudet owned a business with annual sales of $20 million - Gaudet attempted to avoid in­come tax on part of his income by mak­ing false or deceptive statements on his tax returns - Over a five year period, he under­stated his income and avoided taxes total­ling $219,000 - The scheme involved one of his companies selling seafood in the United States and diverting the proceeds to Gaudet personally - No prior record - Charitable donations exceeded $300,000 during the period in question - Pleaded guilty - Facing civil assessments of $1.8 million - Character references from a senator, two church ministers, a bank man­ager and a businessman - The New Bruns­wick Provincial Court fined Gaudet $219,000 and in default of payment, im­posed a total sentence of 60 months' incar­ceration.

Income Tax - Topic 9686

Tax evasion and tax avoidance - Punish­ments - Sentence - Fines - Tax sought to be evaded - [See Income Tax - Topic 9684 ].

Cases Noticed:

R. v. Horowitz (1971), 71 D.T.C. 5350 (Ont. Co. Ct.), consd. [para. 11].

R. v. Oriental Bowl Ltd., Yee, Yee and Yee (1983), 27 Sask.R. 212; 83 D.T.C. 5342 (Prov. Ct.), refd to. [para. 17].

R. v. Ostertag (1977), 34 C.C.C.(2d) 133 (B.C. Co. Ct.), refd to. [para. 17].

R. v. Poynton (1972), 9 C.C.C.(2d) 32 (Ont. C.A.), refd to. [para. 24].

R. v. Sumarah and Northstar Shipping, [1970] 5 C.C.C. 317 (N.S. Co. Ct.), refd to. [para. 24].

R. v. Kitto (1969), 8 C.R.N.S. 277 (B.C. Prov. Ct.), consd. [para. 34].

Statutes Noticed:

Criminal Code, R.S.C. 1985, c. C-46, sect. 718 [para. 13]; sect. 718.1, sect. 718.2 [para. 14].

Income Tax Act, R.S.C. 1952, c. 148, sect. 239(1)(a) [para. 1]; sect. 239(1)(d) [para. 3]; sect. 239(1)(f), sect. 239(1)(g) [para. 6]; sect. 244(4) [para. 21].

Authors and Works Noticed:

Ruby, Clayton C., Sentencing (4th Ed. 1994), pp. 631 [para. 15]; 633 [para. 16].

Counsel:

Peter H. MacPhail and Frederick A. Wels­ford, for the Crown;

Eugene J. Mockler, Q.C., and David R. Oley, for the accused.

This matter was heard on June 29, 1998, by Lampert, P.C.J., of the New Brunswick Provincial Court, Judicial District of Monc­ton, who imposed the following sen­tence on July 3, 1998.