R. v. Myers and Interpublishing Co., (1977) 3 A.R. 561 (DC)

CourtCourt of Queen's Bench of Alberta (Canada)
Case DateFebruary 03, 1977
Citations(1977), 3 A.R. 561 (DC)

R. v. Myers (1977), 3 A.R. 561 (DC)

MLB headnote and full text

R. v. Myers and Interpublishing Co. Ltd.

Indexed As: R. v. Myers and Interpublishing Co.

Alberta District Court

Judicial District of Calgary

Holmes, J.D.C.

February 3, 1977.

Summary:

This case arose out of a charge of tax evasion contrary to s. 139 of the Income Tax Act. The taxpayer edited and published a newsletter at Calgary, Alberta. The newsletter included advice on investment and tax matters. The taxpayer was charged with tax evasion with respect to income of $1,400,000.00 for the years 1969 to 1974. During this period the taxpayer established a Swiss company and a Liechtenstein anstalt for the purpose of diverting business profits and avoiding Canadian Income Tax. The trial court acquitted the taxpayer.

On appeal by way of trial de novo to the Alberta District Court the appeal was allowed, the acquittal was set aside and the taxpayer was convicted.

The District Court found that the taxpayer's European operations consisted a sham. In addition, the District Court found that some of the operations of the taxpayer constituted deliberate misrepresentations, including, the failure to report personal benefits received by the taxpayer from the European business entitles.

Income Tax - Topic 9503

Tax evasion - General principles - Interpretation of tax transactions according to substance and not form - The Alberta District Court stated that courts will not hesitate to pierce the corporate veil and interpret tax transactions according to the substance of the transactions and not their form - See paragraphs 31 and 32.

Income Tax - Topic 9510

Tax evasion - What constitutes evasion - A taxpayer was charged under s. 239 of the Income Tax Act with tax evasion with respect to income of $1,400,000.00 for the years 1969 to 1974 - The taxpayer edited and published a newsletter which included advice on investment and tax matters - The taxpayer established a Swiss company and a Liechtenstein anstalt for the purpose of diverting business profits and avoiding Canadian income tax - The taxpayer worked and resided in Calgary, Alberta during the years 1969 to 1974 - The Alberta District Court found that the taxpayer's European operations constituted a sham and that some of the operations of the taxpayer constituted deliberate misrepresentations, including the failure to report personal benefits received by the taxpayer from the European business entities - The Alberta District Court convicted the taxpayer and the Swiss company of tax evasion.

Income Tax - Topic 9512

Tax evasion - General principles - Requirement of intent or mens rea - The Alberta District Court stated that the Crown must prove mens rea on a charge tax evasion under s. 139 of the Income Tax Act - See paragraph 38.

Income Tax - Topic 9514

Tax evasion - General principles - Requirement of assessment of tax - The Alberta District Court stated that on a charge of tax evasion the question of assessment by the Minister is not relevant because a tax is imposed under the Income Tax Act whether or not an assessment is made - See paragraphs 56 and 57.

Words and Phrases

Sham - The Alberta District Court discussed the meaning of the word "sham" in income tax law - See paragraph 33.

Words and Phrases

Tax evasion - The Alberta District Court discussed the meaning of the words "tax evasion" in income tax law - See paragraph 39.

Cases Noticed:

Dominion Taxicab Association v. M.N.R., [1954] S.C.R. 82; C.T.C. 34; 54 D.C.T. 1020, folld. [para. 31].

Dominion Bridge Company Ltd. v. The Queen, [1975] C.T.C. 263, folld. [para. 32].

Snook v. London & West Riding Investments Ltd., [1967] 1 All E.R. 518, folld. [para. 33].

Acme Slide Fastener Co. Ltd. v. The Queen, [1966] C.T.C. 684, folld. [para. 38].

R. v. Hummel, [1971] C.T.C. 803, folld. [para. 38].

R. v. Baker (1973), 45 D.L.R.(3d) 247, folld. [para. 38].

R. v. Paveley, 76 D.T.C. 6415, folld. [para. 39].

R. v. Garshman, [1976] D.T.C. 610, refd to. [para. 49].

Legare Foundry Limited v. M.N.R., 36 Tax A.B.C. 351; [1964] D.T.C. 696, refd to. [para. 49].

Isherwood v. M.N.R., [1964] D.T.C. 728, refd to. [para. 49].

Elchuk v. M.N.R., [1970] D.T.C. 6235, refd to. [para. 49].

R. v. Simard-Beaudry Inc. et al. (1971), 71 D.T.C. 5511, folld. [para. 50].

Hawrish v. Minister of National Revenue, 14 N.R. 381; [1975] D.T.C. 5314, folld. [para. 50].

Re Cumming (1959), 29 W.W.R. 16, refd to. [para. 51].

R. v. Machacek (1961), 34 W.W.R. 76, folld. [para. 52].

R. v. Scott (1920), 34 C.C.C. 180, folld. [para. 62].

R. v. Castle (1937), 68 C.C.C. 78, folld. [para. 62].

Campbell v. Jaques, [1959] C.T.C. 437, folld. [para. 62].

Statutes Noticed:

Income Tax Act, S.C. 1970-71-72, c. 63, sect. 2, sect. 105(1), sect. 151, sect. 248(1) [para. 29]; sect. 152 [para. 46]; sect. 239 [para. 36]; sect. 248(2) [para. 54].

Counsel:

W.J. Major, Q.C., for the Crown;

J.A. MacPherson, for the defence.

The judgment of HOLMES, D.C.J., of the Alberta District Court was delivered at Calgary, Alberta on February 3, 1977.

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2 practice notes
  • R. v. Hefler, (1980) 42 N.S.R.(2d) 276 (CoCt)
    • Canada
    • 23 Julio 1980
    ...38; 26 C.R.N.S. 285; 16 C.C.C.(2d) 126; 45 D.L.R.(3d) 247, dist. [para. 29]. R. v. Myers, [1977] 2 W.W.R. 193; [1977] C.T.C. 507; 3 A.R. 561; 35 C.C.C.(2d) 1; 76 D.L.R.(3d) 14, dist. [para. 29]. R. v. Branch, [1976] W.W.D. 78; [1976] C.T.C. 193; 76 D.T.C. 6112, dist. [para. 29]. R. v. Pavel......
  • R. v. Myers and Interpublishing Co., (1977) 3 A.R. 605 (DC)
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • 1 Marzo 1977
    ...a sentence of imprisonment of two years. This report concerns sentence only. The judgment of Holmes, D.C.J., following trial is reported at 3 A.R. 561. Counsel: W.J. Major, Q.C., for the Crown; J.A. MacPherson, for the appellants. This report concerns sentence only. The judgment of Holmes, ......
2 cases
  • R. v. Hefler, (1980) 42 N.S.R.(2d) 276 (CoCt)
    • Canada
    • 23 Julio 1980
    ...38; 26 C.R.N.S. 285; 16 C.C.C.(2d) 126; 45 D.L.R.(3d) 247, dist. [para. 29]. R. v. Myers, [1977] 2 W.W.R. 193; [1977] C.T.C. 507; 3 A.R. 561; 35 C.C.C.(2d) 1; 76 D.L.R.(3d) 14, dist. [para. 29]. R. v. Branch, [1976] W.W.D. 78; [1976] C.T.C. 193; 76 D.T.C. 6112, dist. [para. 29]. R. v. Pavel......
  • R. v. Myers and Interpublishing Co., (1977) 3 A.R. 605 (DC)
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • 1 Marzo 1977
    ...a sentence of imprisonment of two years. This report concerns sentence only. The judgment of Holmes, D.C.J., following trial is reported at 3 A.R. 561. Counsel: W.J. Major, Q.C., for the Crown; J.A. MacPherson, for the appellants. This report concerns sentence only. The judgment of Holmes, ......

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