CRA Bankrupts BC Couple Over Nothing Part 1 of 2 :CRA SOTW
Alan Baggett
Revenue Canada refuses to pay for million-dollar mistake
Taxpayer led to believe Harper government would compensate him for
losses
Jill Moore, left, and Irvin Leroux lost their business and their home
in B.C. in a tax fight with the Canada Revenue Agency.
Thursday, April 23, 2009 | 11:26 AM PT
By Kathy Tomlinson, CBC News
A B.C. taxpayer who fought the Canada Revenue Agency over a million-
dollar tax bill he didn't owe — and won — says the federal government
misled him to believe he would be compensated for his financial
losses.
"They're trying to now find a way to shove this under the rug or
silence it so that they don't get embarrassed," 64-year-old Prince
George resident Irvin Leroux said.
"Promises have been made at the political level," added his wife, Jill
Moore, "and still, here we are."
Correspondence suggests Leroux's MP, Conservative Dick Harris, was
assured three years ago by the minister responsible that the
government was prepared to compensate Leroux for Canada Revenue Agency
errors that cost Leroux his business and his home. That settlement has
not materialized.
'Promises have been made at the political level.'
—Irvin Leroux's wife, Jill Moore"They took everything I was,
everything I stood for, and destroyed it," Leroux said.
CBC News made several requests to talk to the current revenue
minister, Jean-Pierre Blackburn, about Leroux's case but received no
response.
Before their fight with the taxman, Leroux and his wife owned and
operated a successful RV park in Valemount, B.C. In 2002, Irvin's RV
Park and Campground was awarded the prestigious SuperHost customer
service award by B.C. Tourism.
Records lost by auditor, businessman says
Leroux said his tax troubles began in 1996, when an auditor from the
tax agency showed up to look at the books. The auditor took Leroux's
business receipts and other records, he said, then misplaced those
records at the CRA office.
"He told me someone had put them on the pile that was to be shredded,"
Leroux said.
Without receipts to show his business expenses, numerous CRA audits
over several years concluded Leroux owed almost $900,000 in personal
income tax, plus over $100,000 in GST, including interest and
penalties.
Leroux's RV Park and Campground in Valemount, B.C., had to be sold.
(CBC) "I said, 'You had all of these records. You knew I had paid out
those expenses. You lost them, and now you're telling me that you are
going to disallow them all?' " Leroux recounted. "I said, 'That's
fine, I will seek a tax lawyer. I will see you in court.' "
In 2005, he took his case to the Tax Court of Canada, where the CRA
gave up in a so-called consent to judgment, essentially admitting its
mistake. That reduced Leroux's personal tax bill to zero and his GST
bill to $20,000. Documents show that by 2006, Leroux was actually owed
a $24,000 tax refund.
Years before his case got to tax court, however, the CRA had obtained
a writ of seizure and sale against Leroux's properties so it could
move in and collect on his alleged tax debt, if necessary.
"These individuals have the right to come after every one of your
assets without justification on what they are doing," Leroux said.
Because its security was suddenly at risk, Leroux's main creditor —
the Business Development Bank of Canada — demanded in 2001 that he pay
back his very large business loan.
Forced to sell all his assets
That touched off a chain of events, Leroux said, that forced the sale
— at reduced prices — of his business, his home and other assets,
valued at approximately $4 million.
"I lost my house, I lost my business, I lost my land, I lost my
income, I lost my savings — I lost it all," Leroux said. "Why? Because
[the CRA] wouldn't admit to their mistakes. They would sooner destroy
me and try to bury me out there than admit they did wrong."
"I've said to him the whole way, I will fight with you," said Moore,
his wife. "This is wrong. They can't take it away and not even
apologize. They can't take it away and not be held accountable."
After Leroux's tax bill was cancelled, his MP, 16-year veteran B.C.
caucus chair Harris, stepped in and took his case to Ottawa.
Correspondence shows that in 2006, Harris had several discussions with
then minister of national revenue Carol Skelton — a member of Prime
Minister Stephen Harper's cabinet — urging her to arrange compensation
for his constituent's losses.
At first, Skelton assured Harris that if Leroux filed a lawsuit
against the government, an out-of-court settlement could be arranged,
the documents suggest.
In a letter to the minister, Harris repeated what she had led him to
believe: "I was told that 'CRA does not have a mechanism to
proactively pay damages,… however if Mr. Leroux launches a court
challenge with a statement of claim, the department could… settle out
of court.' "
In an email to Leroux, Harris wrote: "I am convinced that things are
going as we were promised…. [The minister] wants the outcome of your
case to be an example of how Revenue Canada must be held accountable
for its abuses of Canadians."
'All hell is going to break loose': Conservative MP
Later in 2006, when there was no sign of a settlement in the works,
Harris wrote this angry email to the minister's assistant:
"I am livid. This whole episode is the most inhumane treatment I have
ever witnessed in my life. And I cannot believe that our own
government would treat Canadians in this manner. Mr. Leroux is an
honest, principled individual who had been driven to the brink many
times by Revenue Canada. If Revenue Canada mount even the slightest
objection to the statement of claim filing this week I ASSURE YOU AND
THE MINISTER THAT ALL HELL IS GOING TO BREAK LOOSE. This is bulls--t!"
Conservative MP Dick Harris calls Revenue Canada's treatment of the
B.C. couple 'inhumane.' (CBC) Harris refused a request by CBC News to
be interviewed about the affair, however, saying, "I don't consider
the work that I am doing for [Leroux], that it should become a news
story, somehow."
In March, the CRA tried to have Leroux's statement of claim thrown out
of court. Leroux said he would have never filed the claim in the first
place if he hadn't been urged to by his MP, because he can't afford a
lawyer to pursue it.
Leroux said he now feels betrayed by the Harper government, including
the prime minister. When Harper himself was campaigning to be leader
of the Conservative Party, Leroux said, he spoke to the future PM at
length about his fight with the CRA.
"He said to me, 'I guarantee you if I have your support and I get
elected in as the leader of this party,' he says, 'I will give you my
word I will look into this matter for you and get the matter
resolved.' Now, he's forgotten my name."
"We're tapped out," Moore said. "There are no more lawyers we can pay.
No more accountants we can hire."
"We don't have a system in place to protect us," Leroux added.
"Because I've gone through the system. I've gone through the steps.
And every time I walk the steps, I find there's always something there
to push me back down. Where is the justice?"
'No compensation will be paid': CRA
Internal CRA emails written by assistant commissioner Rod Quiney in
August 2006, obtained by Leroux under the federal access to
information law, summarize the agency's position in his case:
"I believe we have been very fair and have in all respects provided
the appropriate respect for his position and appropriate redress [by
cancelling the debt]," Quiney wrote.
"No compensation will be paid," he concluded.
Leroux is thoroughly disappointed in the Harper government he
supported.
"The people we elected to look after this stuff and protect us,
they're not there, because the bureaucrats who did all of this stuff
are instructing the politicians on what to do."
-----------------------------------------------------------
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Alan Baggett – Tax Collector’s Bible
Sharx35
"Alan Baggett" <AlanB...@volcanomail.com> wrote in message
news:38c7bf84-5917-410c...@w35g2000prg.googlegroups.com...
> CRA Bankrupts BC Couple Over Nothing Part 1 of 2 :CRA SOTW
>
> Revenue Canada refuses to pay for million-dollar mistake
>
> Taxpayer led to believe Harper government would compensate him for
> losses
>
> Jill Moore, left, and Irvin Leroux lost their business and their home
> in B.C. in a tax fight with the Canada Revenue Agency.
>
> Thursday, April 23, 2009 | 11:26 AM PT
> By Kathy Tomlinson, CBC News
>
> A B.C. taxpayer who fought the Canada Revenue Agency over a million-
> misled him to believe he would be compensated for his financial
> losses.
>
> "They're trying to now find a way to shove this under the rug or
> silence it so that they don't get embarrassed," 64-year-old Prince
> George resident Irvin Leroux said.
>
> "Promises have been made at the political level," added his wife, Jill
> Moore, "and still, here we are."
>
> Correspondence suggests Leroux's MP, Conservative Dick Harris, was
> assured three years ago by the minister responsible that the
> government was prepared to compensate Leroux for Canada Revenue Agency
> errors that cost Leroux his business and his home. That settlement has
> not materialized.
>
> 'Promises have been made at the political level.'
>
> the Business Development Bank of Canada � demanded in 2001 that he pay
> back his very large business loan.
>
> Forced to sell all his assets
> That touched off a chain of events, Leroux said, that forced the sale
> valued at approximately $4 million.
>
> "I lost my house, I lost my business, I lost my land, I lost my
> [the CRA] wouldn't admit to their mistakes. They would sooner destroy
> me and try to bury me out there than admit they did wrong."
>
> "I've said to him the whole way, I will fight with you," said Moore,
> his wife. "This is wrong. They can't take it away and not even
> apologize. They can't take it away and not be held accountable."
>
> After Leroux's tax bill was cancelled, his MP, 16-year veteran B.C.
> caucus chair Harris, stepped in and took his case to Ottawa.
>
> Correspondence shows that in 2006, Harris had several discussions with
> Minister Stephen Harper's cabinet � urging her to arrange compensation
> for his constituent's losses.
>
> At first, Skelton assured Harris that if Leroux filed a lawsuit
> against the government, an out-of-court settlement could be arranged,
> the documents suggest.
>
> In a letter to the minister, Harris repeated what she had led him to
> believe: "I was told that 'CRA does not have a mechanism to
> challenge with a statement of claim, the department could� settle out
> of court.' "
>
> In an email to Leroux, Harris wrote: "I am convinced that things are
That is absolutely abominable treatment. What a nightmare! Those responsible
for losing his records should have their asses fried and all THEIR assets
seized.
Alan Baggett
> "Alan Baggett" <AlanBagg...@volcanomail.com> wrote in message
>
> news:38c7bf84-5917-410c...@w35g2000prg.googlegroups.com...
>
>
>
>
>
> > CRA Bankrupts BC Couple Over Nothing Part 1 of 2 :CRA SOTW
>
> > Revenue Canada refuses to pay for million-dollar mistake
>
> > Taxpayer led to believe Harper government would compensate him for
> > losses
>
> > Jill Moore, left, and Irvin Leroux lost their business and their home
> > in B.C. in a tax fight with the Canada Revenue Agency.
>
> > Thursday, April 23, 2009 | 11:26 AM PT
> > By Kathy Tomlinson, CBC News
>
> > A B.C. taxpayer who fought the Canada Revenue Agency over a million-
> > misled him to believe he would be compensated for his financial
> > losses.
>
> > "They're trying to now find a way to shove this under the rug or
> > silence it so that they don't get embarrassed," 64-year-old Prince
> > George resident Irvin Leroux said.
>
> > "Promises have been made at the political level," added his wife, Jill
> > Moore, "and still, here we are."
>
> > Correspondence suggests Leroux's MP, Conservative Dick Harris, was
> > assured three years ago by the minister responsible that the
> > government was prepared to compensate Leroux for Canada Revenue Agency
> > errors that cost Leroux his business and his home. That settlement has
> > not materialized.
>
> > 'Promises have been made at the political level.'
>
> > the Business Development Bank of Canada — demanded in 2001 that he pay
> > back his very large business loan.
>
> > Forced to sell all his assets
> > That touched off a chain of events, Leroux said, that forced the sale
> > valued at approximately $4 million.
>
> > "I lost my house, I lost my business, I lost my land, I lost my
> > [the CRA] wouldn't admit to their mistakes. They would sooner destroy
> > me and try to bury me out there than admit they did wrong."
>
> > "I've said to him the whole way, I will fight with you," said Moore,
> > his wife. "This is wrong. They can't take it away and not even
> > apologize. They can't take it away and not be held accountable."
>
> > After Leroux's tax bill was cancelled, his MP, 16-year veteran B.C.
> > caucus chair Harris, stepped in and took his case to Ottawa.
>
> > Correspondence shows that in 2006, Harris had several discussions with
> > Minister Stephen Harper's cabinet — urging her to arrange compensation
> > for his constituent's losses.
>
> > At first, Skelton assured Harris that if Leroux filed a lawsuit
> > against the government, an out-of-court settlement could be arranged,
> > the documents suggest.
>
> > In a letter to the minister, Harris repeated what she had led him to
> > believe: "I was told that 'CRA does not have a mechanism to
> > challenge with a statement of claim, the department could… settle out
> > of court.' "
>
> > In an email to Leroux, Harris wrote: "I am convinced that things are
>
> That is absolutely abominable treatment. What a nightmare! Those responsible
> for losing his records should have their asses fried and all THEIR assets
>
> - Show quoted text -
Not much more you can say but incredibly shameful behaviour.
And it could happen to anybody.
Alan Baggett
>
> news:38c7bf84-5917-410c...@w35g2000prg.googlegroups.com...
>
>
>
>
>
> > CRA Bankrupts BC Couple Over Nothing Part 1 of 2 :CRA SOTW
>
> > Revenue Canada refuses to pay for million-dollar mistake
>
> > Taxpayer led to believe Harper government would compensate him for
> > losses
>
> > Jill Moore, left, and Irvin Leroux lost their business and their home
> > in B.C. in a tax fight with the Canada Revenue Agency.
>
> > Thursday, April 23, 2009 | 11:26 AM PT
> > By Kathy Tomlinson, CBC News
>
> > A B.C. taxpayer who fought the Canada Revenue Agency over a million-
> > misled him to believe he would be compensated for his financial
> > losses.
>
> > "They're trying to now find a way to shove this under the rug or
> > silence it so that they don't get embarrassed," 64-year-old Prince
> > George resident Irvin Leroux said.
>
> > "Promises have been made at the political level," added his wife, Jill
> > Moore, "and still, here we are."
>
> > Correspondence suggests Leroux's MP, Conservative Dick Harris, was
> > assured three years ago by the minister responsible that the
> > government was prepared to compensate Leroux for Canada Revenue Agency
> > errors that cost Leroux his business and his home. That settlement has
> > not materialized.
>
> > 'Promises have been made at the political level.'
>
> > the Business Development Bank of Canada — demanded in 2001 that he pay
> > back his very large business loan.
>
> > Forced to sell all his assets
> > That touched off a chain of events, Leroux said, that forced the sale
> > valued at approximately $4 million.
>
> > "I lost my house, I lost my business, I lost my land, I lost my
> > [the CRA] wouldn't admit to their mistakes. They would sooner destroy
> > me and try to bury me out there than admit they did wrong."
>
> > "I've said to him the whole way, I will fight with you," said Moore,
> > his wife. "This is wrong. They can't take it away and not even
> > apologize. They can't take it away and not be held accountable."
>
> > After Leroux's tax bill was cancelled, his MP, 16-year veteran B.C.
> > caucus chair Harris, stepped in and took his case to Ottawa.
>
> > Correspondence shows that in 2006, Harris had several discussions with
> > Minister Stephen Harper's cabinet — urging her to arrange compensation
> > for his constituent's losses.
>
> > At first, Skelton assured Harris that if Leroux filed a lawsuit
> > against the government, an out-of-court settlement could be arranged,
> > the documents suggest.
>
> > In a letter to the minister, Harris repeated what she had led him to
> > believe: "I was told that 'CRA does not have a mechanism to
> > challenge with a statement of claim, the department could… settle out
> > of court.' "
>
> > In an email to Leroux, Harris wrote: "I am convinced that things are
>
> That is absolutely abominable treatment. What a nightmare! Those responsible
> for losing his records should have their asses fried and all THEIR assets
>
> - Show quoted text -
Of course they should.
But nothing will happen.
Canuck57
"Sharx35" <sha...@hotmail.com> wrote in message
news:ezPJl.24947$Db2.10452@edtnps83...
> That is absolutely abominable treatment. What a nightmare! Those
> responsible for losing his records should have their asses fried and all
> THEIR assets seized.
Governments themselves are getting desperate for money because they have
problems borrowing and revenues are plumeting at an alarming rate. If you
watch provincial bond issues, Ontario has routinely released cash calls
falling short of filling the orders. And they know if they borrow more,
hyper stag-flation will crush next. This is going to be a long depression
as the economy hits the next step over the precibis.
Me, not too concerned, this is where those debtor-BSers get flushed, and the
people who did things right will prevail. This depression is going to clean
out a lot of garbage in our society. And government cutbacks just might
have started, according to someone I know.
And the CCRA are not much different than the KGB, the strong arm of
government to cut the fleece off the herd. Socialists are about to learn
all the greedy taxes they took are not there for the services they promised,
they pissed it away on corruption.
Canuck57
"Alan Baggett" <canadareve...@hotmail.com> wrote in message
news:bec9963c-bbe8-4dd8...@r31g2000prh.googlegroups.com...
--------
It is also why I keep money in foreign banks. Seriously, a Canadian warrant
in NY isn't worth s--t. Oh, I declare the earnings, but do you think this
Canaidan trusts the Canadian government? Well, OK, I trust them to steal
from us. Got $100B for bailouts this last year alone, and driving debt like
mad crack junkies shooting dope. Sooner or later the corrupt parties of
Canada will raise taxes to cover this insane corruption.
Alan Baggett
> "Sharx35" <shar...@hotmail.com> wrote in message
Its all over but the crying.
Canuck57
"Alan Baggett" <canadasrev...@hotmail.com> wrote in message
news:9a12151b-18a5-402f...@z7g2000vbh.googlegroups.com...
-------
Actually, I thought it was just beginning. CCRA is going to get worse not
better when the government gets hopeless out of tax and debt control.
You have rising unemployment for more EI, you have income plummeting and a
$60B deficit budget coming. More CPP coming but less working to pay for
that unrealized debt. You have many who will become unemployable wanting
their bailouts, and the bailout baby is out of the bag. Top it off, the
governments themselves are having a hard time borrowing money so they
create/print it.
To me, the next few years is going to be very interesting.
Alan Baggett
> "Alan Baggett" <canadasrevenueage...@hotmail.com> wrote in message
>
> - Show quoted text -
Yeah, you're right, it is just beginning.