R. v. Spryfield Bingo and Amusement Centre Ltd., (1997) 162 N.S.R.(2d) 1 (ProvCt)

• Judge: Williston, P.C.J.
• Court: Provincial Court of Nova Scotia (Canada)
• Case Date: November 15, 1996
• Jurisdiction: Nova Scotia
• Citations: (1997), 162 N.S.R.(2d) 1 (ProvCt)

R. v. Spryfield Bingo (1997), 162 N.S.R.(2d) 1 (ProvCt);

    485 A.P.R. 1

MLB headnote and full text

Temp. Cite: [1997] N.S.R.(2d) TBEd. OC.002

Her Majesty The Queen v. Spryfield Bingo and Amusement Centre Limited, now known as Centre Bingo Limited

(Case Nos. 446681, 446683, 446685, 446687, 446689, 446691, 446693 and 446695)

Indexed As: R. v. Spryfield Bingo and Amusement Centre Ltd.

Nova Scotia Provincial Court

Williston, P.C.J.

April 28, 1997.

Summary:

The accused was charged with four counts of income tax evasion and four counts of making false or deceptive statements in income tax returns by failing to report income in the years 1983 to 1986 (Income Tax Act, ss. 239(1)(d) and 239(1)(a) respec­tively).

The Nova Scotia Provincial Court found the accused not guilty on all eight counts.

Income Tax - Topic 9350

Enforcement - Offences - False state­ments - Spryfield Bingo and Amusement Centre Ltd. was charged with four counts of income tax evasion and four counts of making false or deceptive statements in income tax returns by failing to report income - Revenue Canada took invoices showing bingo cards purportedly shipped to the accused and multiplied them by the sale price of the cards to calculate the ac­cused's gross sale figures - It used gross bingo income less prizes to calculate net bingo income - The accused argued, inter alia, that evidence that large quantities of bingo product invoiced to the accused was unaccounted for and not sold raised a reasonable doubt that a substantial number of cards were not delivered, received and sold by the accused as Revenue Canada assumed, and at the heart of its reassessment calculations - The Nova Scotia Provincial Court found the accused not guilty on all eight counts.

Income Tax - Topic 9350

Enforcement - Offences - False state­ments - [See Income Tax - Topic 9358 ].

Income Tax - Topic 9358

Enforcement - Offences - Mens rea or intention - Spryfield Bingo and Amuse­ment Centre Ltd. was charged with four counts of income tax evasion and four counts of making false or deceptive state­ments in income tax returns by failing to report income (Income Tax Act, ss. 239(1)(d) and 239(1)(a) respectively) - The Nova Scotia Provincial Court reviewed the mens rea and actus rea of the offences and the applicable burden of proof - See para­graphs 8 to 23.

Income Tax - Topic 9363

Enforcement - Evidence and proof - Bur­den of proof - [See Income Tax - Topic 9358 ].

Income Tax - Topic 9510

Tax evasion and tax avoidance - General principles - What constitutes evasion - [See first Income Tax - Topic 9350 and Income Tax - Topic 9358 ].

Income Tax - Topic 9512

Tax evasion and tax avoidance - General principles - Requirement of intent or wil­fulness - [See Income Tax - Topic 9358 ].

Income Tax - Topic 9663

Tax evasion and tax avoidance - Evidence and proof - Burden of proof - [See Income Tax - Topic 9358 ].

Cases Noticed:

R. v. Hefler (1980), 42 N.S.R.(2d) 276; 77 A.P.R. 276 (Co. Ct.), refd to. [paras. 8, 20].

R. v. Sault Ste. Marie (City), [1978] 2 S.C.R. 1299; 21 N.R. 295; 85 D.L.R.(3d) 161; 40 C.C.C.(2d) 353; 3 C.R.(3d) 30; 7 C.E.L.R. 53, refd to. [para. 8].

Evans v. Dell, [1937] 1 All E.R. 349, refd to. [para. 15].

R. v. Morris (1973), C.T.C. 629 (Ont. Prov. Ct.), refd to. [para. 16].

R. v. Kidd (1974), 74 D.T.C. 6574 (Ont. H.C.), refd to. [para. 17].

R. v. Frank (1945), 84 C.C.C. 94 (P.E.I.S.C.), refd to. [para. 18].

Ciglen v. R., [1970] 4 C.C.C. 83 (S.C.C.), refd to. [para. 18].

R. v. Redpath Industries Ltd. and Domin­ion Sugar Co. (1984), 84 D.T.C. 6439 (Que. S.C.), refd to. [para. 19].

R. v. Century 21 Ramos Realty Inc. and Ramos (1987), 19 O.A.C. 25; 32 C.C.C.(3d) 353 (C.A.), refd to. [para. 20].

R. v. Giguère, Belhumeur, Dionne, Cana­dian Advertising Agency Ltd. and Publicor Ltd., [1983] 2 S.C.R. 448; 50 N.R. 347; 8 C.C.C.(3d) 1, refd to. [para. 20].

R. v. Morin, [1988] 2 S.C.R. 345; 88 N.R. 161; 30 O.A.C. 81; 44 C.C.C.(3d) 193; 66 C.R.(3d) 1, refd to. [para. 21].

Ramey v. R., 93 D.T.C. 791 (T.C.C.), refd to. [para. 79].

R. v. Wild (1970), 4 C.C.C. 40 (S.C.C.), refd to. [para. 93].

R. v. Nimchuk (1977), 33 C.C.C.(2d) 209 (Ont. C.A.), refd to. [para. 97].

R. v. Challice (1979), 45 C.C.C.(2d) 546 (Ont. C.A.), refd to. [para. 97].

R. v. D.W., [1991] 1 S.C.R. 742; 122 N.R. 277; 46 O.A.C. 353; 63 C.C.C.(3d) 397, refd to. [para. 97].

R. v. Brydon (J.L.), [1995] 4 S.C.R. 253; 188 N.R. 321; 65 B.C.A.C. 81; 106 W.A.C. 81; 101 C.C.C.(3d) 481, refd to. [para. 99].

R. v. Deslauriers (G.J.) et al. (1991), 77 Man.R.(2d) 48 (Q.B.), refd to. [para. 100].

Statutes Noticed:

Income Tax Act, R.S.C. 1972, c. 148, sect. 239(1)(a), sect. 239(1)(d) [para. 5].

Authors and Works Noticed:

Williams, Glanville, Textbook of Criminal Law (2nd Ed. 1983), pp. 156 [para. 13]; 158, 159 [para. 14].

Counsel:

Douglas L. Richard, Q.C., for the prosecu­tion;

Joel E. Pink, Q.C., for the defendant.

This matter was heard at Halifax, Nova Scotia, on October 2, 3, 5, 17 to 20, 1995, January 8 to 11, 15, 23 to 26, 1996, June 3, 4, 1996, and November 15, 1996, before Williston, P.C.J., of the Nova Scotia Provin­cial Court, who delivered the following judgment on April 28, 1997.