The owners of MGM Restaurant were awarded almost $1.7 million by the Supreme Court of B.C. in a lawsuit against the Canada Revenue Agency. (BLACK PRESS file photo)

Nanaimo restaurant owners awarded $1.7M in lawsuit

Supreme Court of B.C. justice finds CRA investigators were gleeful about anticipated prosecution

The owners of a restaurant in Nanaimo were awarded almost $1.7 million by the Supreme Court of B.C. in a lawsuit against the Canada Revenue Agency.

In a ruling Friday, Justice Robert Punnett found the CRA “vicariously liable” for the conduct of an investigator in prosecuting Tony and Helen Samaroo for tax evasion and found that the CRA’s conduct was “high-handed, reprehensible and malicious.”

In 2008, the Canada Revenue Agency issued an indictment against the the MGM Restaurant for allegedly skimming $1.7 million between 2004-2005 via incomplete reporting of sales summaries. However, the Samaroos were acquitted in 2011 after they were able to plausibly explain their bookkeeping.

In e-mailed communications during the investigation leading up to that trial, CRA employees joked about potential news coverage of a guilty verdict and whether it would “call for a guillotine.”

The Samaroos commenced their lawsuit in 2012, positing that CRA employees initiated a prosecution “without reasonable and probable grounds and with malice,” according to last week’s judgment. The defendant argued that there was no evidence to suggest that there wasn’t “reasonable and probable cause” for prosecution, “nor is there evidence that the defendants acted for a purpose other than to place the case before the court for adjudication.”

Punnett wrote in his judgment that after CRA employees “looked forward with unprofessional glee to the plaintiffs’ anticipated conviction and sentencing and their resulting ruination.”

Tony and Helen Samaroo, who no longer live together, were awarded $300,000 each in punitive damages and were awarded $750,000 in punitive damages and $347,732 in legal expenses.

The justice noted that “no amount of punitive damages will cause the CRA financial hardship.”

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Huge month for Chilliwack real estate in July

Average selling price up 12 per cent with sales numbers not seen since boom of 2017

Column: Grade school students don’t have a voice during COVID pandemic

As adults weigh pros and cons of returning kids to school, is anyone asking kids what they think?

Unofficial holidays: the weird and wonderful things people celebrate around the world

On any given day of the year, there are several strange, silly or serious holidays to observe

Chilliwack Salvation Army to give away free laundry detergent and more at drive-thru event

They will be handing out Tide detergent, toothpaste and eggs to anyone who is in need

SLIDESHOW: Chilliwack firefighters battle large blaze at Rosedale chicken barn Friday

Majority of birds saved but buildings on Castleman Road destroyed by fire

Canada to match donations to Lebanon relief

Canada is directing all of its aid for this crisis directly to humanitarian organizations, not the Lebanese government

Who can dismiss the Governor General? A look at protocols and possibilities

The Governor General is appointed by the Queen, on the advice of the prime minister

Second phase of NHL draft lottery set for Monday

Each club eliminated from qualifying round has a 12.5 per cent shot at the No. 1 pick

University of Victoria, rowing coach sued over alleged ‘fat shaming’ and verbal abuse

Lawsuit says Barney Williams subjected coxswain Lily Copeland to offensive and belittling language

NHL playoffs: Canucks to meet St. Louis Blues in Round 1

Vancouver takes on defending champs beginning Wednesday

Fraser Valley Bandits fall to Edmonton in CEBL final

Bandits lose 90-73 to Stingers in Sunday’s Summer Series final

1 year since a B.C. teen died in a skate park, his family still waiting for charges

Carson Crimeni’s final moments were broadcast on social media

Simon Cowell breaks his back falling from electric bike

Incident happened at his home in California

VIDEO: Internet famous Yukon-based bhangra dancer explores Vancouver Island

Gurdeep Pandher spreads joy through dance, forms cross-cultural connections amid pandemic

Most Read