News release

Tax Evasion nets over 5 years in jail and $ 2.4 million fine

Lear did not file personal and corporate tax returns for the years 1993 through 1998. By doing this, he failed to report more than 8 million dollars of income and sought to evade more than 2 million dollars in federal tax.

The Court heard that, from 1993 to 1998, Lear was the president, secretary, and treasurer of 3056849 Manitoba Ltd. The corporation operated under the names: Wholesale Vacations, Lear Group, Pennywise Privilege, Card International, Incentives International, Get-Aways Travel Network, and Front Desk Pass. The business activities involved acquiring excess space from vacation resorts and reselling the space to travel agents and car dealerships for promotions.

During the court proceedings, Lear used arguments similar to those put forward by other tax protesters who say that tax is unconstitutional and that the Income Tax Act is invalid and therefore unenforceable. However, the jury did not accept his arguments.

The CCRA is concerned that individuals who believe misleading information and accept incorrect advice about the Income Tax Act could expose themselves to serious financial and legal problems because of their failure to comply with the law. Taxpayers who believe they can refuse to file income tax returns by declaring that the income tax laws are unconstitutional are relying on bad advice. People who follow such advice could face anything from late-filing penalties to fines and imprisonment imposed by the courts--in addition to having to pay their unpaid tax, plus interest.

The CCRA encourages anyone who has not filed tax returns or has understated their income to contact a tax services office. In setting the record straight before the CCRA starts any action or investigation, such people will avoid civil penalties and criminal prosecution, but they will have to pay any outstanding tax and interest. For more information, contact:

Harry Troche
Communications Manager
(204) 983-2336 Office
(204) 227-2455 Cellular