Grande Prairie husband and wife tax protesters sentenced for tax evasion

Edmonton, Alberta, January 5, 2017…The Canada Revenue Agency (CRA) announced today that Robert Dale Steinkey, age 60, of Grande Prairie, Alberta, was sentenced in the Provincial Court of Alberta to a fine of $322,278 and a conditional jail sentence of 22 months for tax evasion. Terry Lynn Steinkey, age 63, was sentenced to a fine of $164,124 and a conditional jail sentence of 18 months for tax evasion. In addition to the court-imposed fines, both individuals will have to repay the full amount of taxes owing plus interest.

On December 7, 2015, Mr. and Mrs. Steinkey pleaded guilty to evading federal income taxes of $486,402 for the 2007 and 2008 tax years.

Evidence provided to the court showed that Mr. and Mrs. Steinkey were introduced to the Paradigm Education Group and adopted Paradigm’s beliefs that, as “natural persons,” they were not subject to the Income Tax Act. The court heard that Mr. and Mrs. Steinkey knowingly evaded taxes.

The preceding information was obtained from the court records.

The CRA warns all Canadians to beware of individuals who try to convince them that they do not have to pay tax on the income they earn. These individuals, also known as tax protesters, not only fail to report their own earnings but also conspire, counsel, and promote these tax schemes. Canadian courts have repeatedly and consistently rejected arguments made in these tax protester schemes. For those involved in tax protester schemes, the CRA will reassess income tax and interest and charge penalties. In some cases, these individuals will be prosecuted for tax evasion. If convicted, they could face significant fines and possible jail time. More information on tax protester schemes is available at cra.gc.ca/alert.

If taxpayers have ever made a tax mistake or omission, the CRA is offering them a second chance to make things right through its Voluntary Disclosures Program (VDP). If a valid disclosure is made before the taxpayer becomes aware that the CRA is taking action against them, they may only have to pay the taxes owing plus interest. More information on the VDP can be found on the CRA website.

More information on convictions can be found in the Newsroom on the CRA website.

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For media information

Randy Westerman
Manager of Communications
780-495-4771

Date modified:

2017-01-23