Momentum grows for fighting CRA abuse

Thanks to the internet, people who have been abused by Canada Revenue Agency are coming together to find solutions to tax audit problems. While not all CRA staffers are malicious, there are enough out there that they are making life a living hell for people in financial trouble.

Canadians today are looking for fairness in the tax system. The courts do offer fairness but most people can not aford to fight CRA on their tax problems. They are dealing with the stress of requirements to pay, collections, frozen bank accounts, liens on their homes, and often go bankrupt as a result.

I am happy to see that CRA abuse is coming to light via the internet. If enought pressure is brought to bear, reform will come.

Dan White

Donors aid tax battle    Written by Mark Nielsen
Citizen staff
Friday, 18 September 2009
PGCITIZEN.CA
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A fundraising effort has yielded enough money for Prince George resident Irvin Leroux to hire a lawyer and a tax consultant for his court battle against Canada Revenue Agency over a $1-million tax bill he claims he didn’t owe.
Leroux, who is seeking in excess of $4.5 million in restitution for the assets he says he lost as a result of the CRA incompetence, is crediting donations to a trust fund established in June to help cover his legal costs.
Donations ranged from $4.50 to $500, he said in a statement issued Thursday, many coming from people who’ve had their own run-ins with CRA.
“One lady from back east who’s family is still being harassed by CRA sent $13, she says it’s a dollar for every year I’ve been fighting,” he said. “That’s incredible and this family can ill afford any amount of donation because they are still paying lawyers too.”
Leroux said it all began back in 1996 when an auditor lost his tax and business records — he said they were accidentally shredded — and CRA used other methods to determine he owed $900,000 in income tax and $100,000 in GST.
In 2005, after several other audits, Leroux took his case to the Tax Court of Canada where the CRA dropped its claim. Instead, it refunded Leroux $24,000 and reduced his GST bill to $20,000.
But Leroux said that still falls well short of what he lost because of the CRA’s incompetence.
In the interim, the CRA had placed a writ of seizure and sale against his assets, including a thriving RV park and campground in Valemount.
That raised alarm bells for his creditors and a large business loan Leroux secured for the RV park was called in. Unable to refinance, he was forced to sell the park — worth $2.2 million — for only $825,000.
Other creditors soon followed and he lost all he owned. He has said the appraised value of the assets he lost ran around $4.5 million at the time of the conflict.
In 2006, he filed a statement of claim in B.C. Supreme Court in Prince George seeking financial restitution but it’s been slow going since then.
In March 2008, CRA served a notice of intent to get the case dismissed, but then withdrew the notice and the legal battle is back on. Leroux has also established a website, www.lerouxed.com, through which further donations can be made.
The CRA is not commenting on the case because it’s before the courts.

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