Victoria Paradigm educator sentenced for tax evasion and fraud

Vancouver, British Columbia, November 26, 2015... The Canada Revenue Agency (CRA) announced today that Richard Cory Stanchfield, of Victoria, British Columbia, was sentenced on November 23, 2015, in Robson Square Provincial Court, after being found guilty on one count of income tax evasion and one count of counselling others to commit fraud. He was ordered to serve a 14-month conditional sentence, including nine months house arrest and 80 hours of community service. In addition, he was fined $31,012, representing 100% of the federal income tax evaded.

A CRA investigation determined that Mr. Stanchfield, an “educator” for the Paradigm Education Group (Paradigm), failed to report $224,048 in taxable income for the 2003 to 2008 tax years, evading $31,012 in federal income tax. During this period, Mr. Stanchfield taught students to follow the Paradigm scheme, counseling them on how to restructure their affairs to avoid paying income tax. He was compensated with a percentage of each student’s gross income in exchange for his teachings.

The preceding information was obtained from the court records.

The Canada Revenue Agency warns all Canadians to beware of individuals that try to convince you that Canadians 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 they also conspire, counsel, and promote these tax schemes. Canadian courts have repeatedly and consistently rejected all 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. Individuals who plan to use the tactics of tax protesters should know that this could have significant personal and financial consequences, including fines, imprisonment, or seizure of goods. More information on tax protester schemes is available at www.cra.gc.ca/alert under Tax Protesters.

Taxpayers who claim false expenses, credits or rebates from the government are subject to serious consequences. They are liable not only for corrections to their tax returns and payment of the full amount of tax owing, but also to penalties and interest. In addition, if convicted of tax evasion, the court may fine them up to 200% of the tax evaded and sentence them for up to a five-year jail term.

If you have ever made a tax mistake or omission, the CRA is offering you a second chance to make things right through its Voluntary Disclosures Program (VDP). If you make a valid disclosure before you become aware that the CRA is taking action against you, you may only have to pay the taxes owing plus interest. More information on the VDP can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

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Heidi Hofstad
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Date modified:

2015-11-26