Paradigm “educator” sentenced to 18 months in jail for tax protester scheme

Vancouver, British Columbia, November 2, 2016... The Canada Revenue Agency (CRA) announced that Keith David Lawson of Burnaby, British Columbia, was sentenced on October 31, 2016, in the Supreme Court of British Columbia to six months in jail for each of two counts of tax evasion to be served concurrently and a fine of $30,717. In addition, Mr. Lawson was sentenced to 12 months in jail to be served consecutive for one count of counselling others to evade taxes.

A CRA investigation determined that Mr. Lawson failed to report total income of $159,629 for the 2004 to 2008 tax years and, as a result, evaded $18,036 in federal income tax payable. In addition, Mr. Lawson failed to collect and remit $12,681 in Goods and Services Tax (GST) for the 2005 to 2008 tax years.

Mr. Lawson was an "educator" with the Paradigm Education Group (Paradigm), a tax protestor scheme which counselled people across Canada to commit fraud by evading tax. Paradigm sold products (books, DVDs, and CDs), organized and taught fee-based seminars which "educated" people on how to structure their affairs in a way to illegally avoid taxes.

The preceding information was obtained from the court records.

The CRA warns all Canadians to beware of "tax protesters" who try to convince you that Canadians do not have to pay tax on the income they earn. 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 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. More information on tax protester schemes is available at www.cra.gc.ca/alert.

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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For more information

Heidi Hofstad
Communications Officer
Canada Revenue Agency
604-666-9389

Date modified:

2016-11-03