Paradigm education group educator given 18 month conditional jail sentence for tax evasion and fraud

Moose Jaw, Saskatchewan, November 16, 2015…The Canada Revenue Agency (CRA) announced that on October 26, Douglas James Lewry, age 59, of Caronport, SK, was fined $39,565.78 and sentenced to a conditional sentence order of 18 months for tax evasion and fraud. The fine represents 100% of the tax evaded. The sentence given to Mr. Lewry reflects a reduced amount for compassionate reasons.

On October 26, 2015 Mr. Lewry plead guilty to evading and assisting others to evade federal income taxes of $26,512.19 for the 2004 to 2008 tax years. In addition, Mr. Lewry failed to collect and remit goods and services tax (GST) of $13,053.59 for the 2004 to 2008 tax years. He was also found guilty of counselling others to commit fraud contrary to the Criminal Code.

Evidence provided to the Court showed that Mr. Lewry, an "educator" with the Paradigm Education Group operated by Russell Porisky, adopted Paradigm’s beliefs to allege that, as a "natural person", he was not subject to the Income Tax Act. The court heard that Mr. Lewry knowingly evaded taxes and was also aiding, abetting and counselling others to commit tax evasion.

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. In some cases, these individuals will be prosecuted for tax evasion. If convicted, they could face significant fines and possibly jail time. More information on tax protester schemes is available at www.cra.gc.ca/alert.

When individuals are convicted of income tax and GST evasion, they must still repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the CRA. In addition, the court may fine them up to 200% of the taxes evaded and impose a jail term of up to five years.

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

- 30 -

For media information

• Randy Westerman
• Manager of Communications
• 780-495-4771

Date modified:

2015-11-17