R. v. Topedge Investments Ltd. et al., (2007) 423 A.R. 201 (PC)

• Judge: Daniel, P.C.J.
• Court: Provincial Court of Alberta (Canada)
• Case Date: August 20, 2007
• Citations: (2007), 423 A.R. 201 (PC);2007 ABPC 230

R. v. Topedge Inv. Ltd. (2007), 423 A.R. 201 (PC)

MLB headnote and full text

Temp. Cite: [2007] A.R. TBEd. SE.039

Her Majesty The Queen v. Topedge Investments Ltd. and Geoffrey Scott Edgelow (050319078P10101; 0201; 2007 ABPC 230)

Indexed As: R. v. Topedge Investments Ltd. et al.

Alberta Provincial Court

Daniel, P.C.J.

August 20, 2007.

Summary:

The accused and his company were charged with "wilfully" evading the payment of income taxes.

The Alberta Provincial Court found the accused guilty.

Income Tax - Topic 9510

Tax evasion and tax avoidance - General principles - What constitutes evasion - In 1997, the accused, an experienced businessman, realized a $732,000 capital gain on the sale of shares of his company and was aware of the tax implications - The accused instructed his accountant not to prepare the 1998 corporate tax return - When the accused had dissipated all of the monies set aside to pay all or part of the tax owing, he embarked on a course of conduct to avoid the filing and audit of the 1998 return - When pressed for information by tax authorities, the accused misled, lied and made promises he did not keep - The accused submitted that there was no intent to evade taxes, but that he was just an emotional wreck because he was going through a divorce and was pursuing litigation respecting the sale of the shares, which would affect the amount of tax owed - The Alberta Provincial Court found the accused guilty of wilfully evading the payment of income tax - The accused engaged in a deliberate course of conduct to avoid paying taxes he knew to be owing because he no longer had the funds to pay the tax and had no realistic hope of obtaining the funds - The accused "did not act reasonably or in good faith with the CCRA. He had instead, been engaged in deliberate lies, misrepresentations, evasions, avoidance tactics, breaches of undertakings and promises, all with a view to delaying and ultimately evading the payment of taxes. His tactics were immensely successful. To date, using the same tired old excuses, he has managed not to file any tax return either personally or on behalf of the corporation - more than nine years have passed and he is still deliberately non-compliant" - The accused was "deceitful and underhanded in his deliberate attempt to evade payment of the tax he knew was owed".

Income Tax - Topic 9512

Tax evasion and tax avoidance - General principles - Requirement of intent or wilfulness - [See Income Tax - Topic 9510 ].

Cases Noticed:

R. v. Baker (1973), 6 N.S.R.(2d) 38; 16 C.C.C.(2d) 126 (Co. Ct.), refd to. [para. 43].

R. v. Paveley (1976), 76 D.T.C. 6415 (Sask. C.A.), refd to. [para. 43].

R. v. Branch (1976), 76 D.T.C. 6112 (Alta. Dist. Ct.), refd to. [para. 43].

R. v. Medicine Hat Greenhouses Ltd. and German, [1981] C.T.C. 141; 26 A.R. 617 (C.A.), refd to. [para. 43].

Pongratz v. Minister of National Revenue (1983), 44 N.R. 451 (F.C.A.), dist. [para. 43].

R. v. deWolf (1982), 67 C.C.C.(2d) 43 (B.C.C.A.), dist. [para. 43].

Schwarz v. Minister of National Revenue, [1991] T.C.J. No. 419 (T.C.C.), refd to. [para. 43].

R. v. Jorgensen (R.) et al., [1995] 4 S.C.R. 55; 189 N.R. 1; 87 O.A.C. 1, dist. [para. 43].

R. v. Harding (M.) (2001), 152 O.A.C. 230; 57 O.R.(3d) 333 (C.A.), dist. [para. 43].

R. v. Jarvis (W.J.), [2002] 3 S.C.R. 757; 295 N.R. 201; 317 A.R. 1; 284 W.A.C. 1, refd to. [para. 43].

R. v. Klundert (J.) (2004), 190 O.A.C. 36; 242 D.L.R.(4th) 644 (C.A.), refd to. [para. 43].

R. v. Kennedy (R.V.M.), [2005] 1 C.T.C. 321; 207 B.C.A.C. 102; 341 W.A.C. 102 (C.A.), refd to. [para. 43].

R. v. Mortensen (C.K.), [2004] A.R. Uned. 477; 2004 ABPC 104, refd to. [para. 43].

R. v. Chahine-Badr (A.), [2006] O.T.C. 90; [2006] 2 C.T.C. 243  (Sup. Ct.), refd to. [para. 43].

Knox Contracting Ltd. and Knox v. Canada and Minister of National Revenue et al., [1990] 2 S.C.R. 338; 110 N.R. 171; 106 N.B.R.(2d) 408, refd to. [para. 50].

Minister of National Revenue v. Teodori (1997), 97 G.T.C. 7187 (T.C.C.), refd to. [para. 54].

R. v. D.W., [1991] 1 S.C.R. 742; 122 N.R. 277; 46 O.A.C. 352, refd to. [para. 55].

Counsel:

B. Newton, for the Crown;

L. Scott, for the accused.

This case was heard on June 20-22 and 25-27, 2007, at Calgary, Alberta, before Daniel, P.C.J., of the Alberta Provincial Court, who delivered the following judgment on August 20, 2007.