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.”

Just Posted

Around the BCHL: Merritt, Chilliwack and Coquitlam early-season surprises

Around the BCHL is a look at what’s going on in the league and throughout the junior A world.

Chilliwack ready for legalization with zoning and business bylaw changes

Cannabis retailers in Chilliwack will have to rezone property to open a storefront

BCTF wins grievance over teacher shortage in Chilliwack schools

Arbitrator found Chilliwack school district did not hire enough on-call teachers or librarians

About 400 lined up for lunch and community connections in Chilliwack

Chilliwack organizer calls Winter Warm-Up 2018 a ‘wonderful collaboration’

Six Sto:lo chiefs sign MOU agreement affirming Indigenous rights

Moving to next phase of nation-to-nation negotiation in preparation for final treaty

Rick Mercer says pot is ‘excruciatingly boring’

Comedian hopes Canadians will move onto something else once marijuana is legalized

2 charged for feeding B.C. bear Tim Horton’s timbits

Court documents show that Randy Scott and Megan Hiltz have both been charged with feeding or attempting to feed dangerous wildlife.

Killer-rapist Paul Bernardo set for parole bid after 25 years in prison

Bernardo’s parole hearing at the Bath Institution is expected to attract numerous observers

Feds aiming to select preferred design for $60B warships by end of month

Defence insiders say the government wants to select a design by the end of the month from among three options submitted by several of the largest defence and shipbuilding companies in the world.

A B.C. campaign to give municipalities input into marijuana advertising

Without a say, towns and cities risk Washington-State-style flood of advertising, proponent says

Defence cautions against mob justice in Calgary child neglect trial

Jennifer and Jeromie Clark of Calgary have pleaded not guilty to criminal negligence causing death

Feds eyeing options to expedite pardons for minor pot convictions

Internal discussions have focused on an application-based process for speeding up pot pardons

U.S. pot firms urge Trump to dominate North American marijuana industry

Cannabis producers claim the U.S. is “rapidly losing” its competitive advantage to Canada

Battle resumes over speculation tax on B.C. vacant homes

Opposition calls it ‘fake’ tax that is reducing housing supply

Most Read