Yorkton, Saskatchewan, January 14, 2014…The Canada Revenue Agency (CRA) announced today that Gerald Blerot, age 60, of Moosomin, SK, was convicted in Saskatchewan Court of Queen’s Bench of tax evasion and counselling others to evade taxes. Sentencing has been scheduled for March 10, 2014. Mr. Blerot will remain in custody in Regina until then.
Evidence provided to the Court showed that Mr. Blerot, an “educator” with the Paradigm Education Group operated by Russell Porisky, adopted Paradigm’s beliefs to allege that, as a “natural person”, he was not subject to the Income Tax Act and that he took no action to seek out reputable professional advice regarding these beliefs. The court heard that Mr. Blerot knowingly evaded taxes and was also acting as an “educator” aiding, abetting and counselling others to commit tax evasion.
Mr. Porisky was convicted in the Supreme Court of British Columbia on January 18, 2013 of tax evasion and counselling others to commit tax evasion.
The preceding information was obtained from the court records.
The Canada Revenue Agency warns all Canadians to beware of individuals that try to convince you that Canadians do not have to pay tax on the income they earn. These individuals, also known as tax protesters, not only fail to report their own earnings, but they also conspire, counsel, and promote these tax schemes. Canadian courts have repeatedly and consistently rejected all arguments made in these tax protester schemes. For those involved in tax protester schemes, the CRA will reassess income tax and interest, and charge penalties. In some cases, these individuals will be prosecuted for tax evasion. If convicted, they could face significant fines and possibly jail time. More information on tax protester schemes is available at www.cra.gc.ca/alert.
When individuals are convicted of income tax and GST evasion, they must still repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the CRA. In addition, the court may fine them up to 200% of the taxes evaded and impose a jail term of up to five years.
Taxpayers 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 may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.
Further information on convictions can be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.