Red Deer tax protester receives fine and conditional jail sentence

Edmonton, Alberta, February 11, 2016…The Canada Revenue Agency (CRA) announced today that Denise Eddy, age 51 of Red Deer, Alberta, was sentenced to a court fine of $33,320 and a conditional jail sentence of 24 months for tax evasion and filing false returns.

On February 4, 2016, Ms. Eddy pleaded guilty to evading, and assisting others to evade, federal income taxes of $22,306 for the 2005 to 2008 tax years. In addition, Ms. Eddy failed to collect and remit goods and services tax (GST) of $11,014 for the 2006 to 2008 tax years. She was also found guilty of counselling others to commit fraud contrary to the Criminal Code.

Evidence provided to the Court showed that Ms. Eddy, adopted beliefs that, as a "natural person", she was not subject to the Income Tax Act. The court heard that Ms. Eddy knowingly evaded taxes and was also aiding, abetting and counselling others to commit tax evasion. Ms. Eddy was charged by the CRA on April 13, 2012, following a 25 month criminal investigation.

The preceding information was obtained from the court records.

The CRA warns all Canadians to beware of individuals who 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 such 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 jail time. 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 be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

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For Broadcast use:

A Red Deer tax protestor was sentenced to a court fine of $33,320 and a conditional jail sentence of 24 months for tax evasion and counseling others to commit fraud. Denise Eddy, age 51, of Red Deer, Alberta, pleaded guilty to three counts of tax evasion and filing false returns for 2005 and 2008, as well as one count of counselling others to commit fraud.

For media information:

Randy Westerman
Manager of Communications
780-495-4771

Date modified:

2016-02-15