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Nanaimo restaurant owners awarded $1.7M in lawsuit

Supreme Court of B.C. justice finds CRA investigators were gleeful about anticipated prosecution
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The owners of MGM Restaurant were awarded almost $1.7 million by the Supreme Court of B.C. in a lawsuit against the Canada Revenue Agency. (BLACK PRESS file photo)

The owners of a restaurant in Nanaimo were awarded almost $1.7 million by the Supreme Court of B.C. in a lawsuit against the Canada Revenue Agency.

In a ruling Friday, Justice Robert Punnett found the CRA 91裸聊视频渧icariously liable91裸聊视频 for the conduct of an investigator in prosecuting Tony and Helen Samaroo for tax evasion and found that the CRA91裸聊视频檚 conduct was 91裸聊视频渉igh-handed, reprehensible and malicious.91裸聊视频

In 2008, the Canada Revenue Agency issued an indictment against the the MGM Restaurant for allegedly skimming $1.7 million between 2004-2005 via incomplete reporting of sales summaries. However, the Samaroos were acquitted in 2011 after they were able to plausibly explain their bookkeeping.

In e-mailed communications during the investigation leading up to that trial, CRA employees joked about potential news coverage of a guilty verdict and whether it would 91裸聊视频渃all for a guillotine.91裸聊视频

The Samaroos commenced their lawsuit in 2012, positing that CRA employees initiated a prosecution 91裸聊视频渨ithout reasonable and probable grounds and with malice,91裸聊视频 according to last week91裸聊视频檚 judgment. The defendant argued that there was no evidence to suggest that there wasn91裸聊视频檛 91裸聊视频渞easonable and probable cause91裸聊视频 for prosecution, 91裸聊视频渘or is there evidence that the defendants acted for a purpose other than to place the case before the court for adjudication.91裸聊视频

Punnett wrote in his judgment that after CRA employees 91裸聊视频渓ooked forward with unprofessional glee to the plaintiffs91裸聊视频 anticipated conviction and sentencing and their resulting ruination.91裸聊视频

Tony and Helen Samaroo, who no longer live together, were awarded $300,000 each in punitive damages and were awarded $750,000 in punitive damages and $347,732 in legal expenses.

The justice noted that 91裸聊视频渘o amount of punitive damages will cause the CRA financial hardship.91裸聊视频



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