R. v. Cromwell

R. v. Cromwell

On the totality of the evidence the Crown proved beyond a reasonable doubt that Cromwell consciously and systematically excluded cheque and cash income from his worksheets and HST calculations, knew tax was owing and intended to avoid payment, therefore he and the corporation were guilty of the specified Income Tax Act and Excise Tax Act counts; Count 53 acquitted and overlapping counts stayed under Kienapple.

Citation
2015 NSPC 64
Parties
Crown: Her Majesty the Queen; Accused: Christopher Cromwell; Accused (corporation): 3020636 Nova Scotia Limited
Court
Nova Scotia Provincial Court
Jurisdiction
Canada
Judgment Date
5 October 2015
Procedural Posture
Criminal Tax Evasion and Excise Tax (hst) Offences / Trial Decision (provincial Court)
Outcome
Convicted on Counts 3 and 4 (ITA) and Counts 29 through 52 (ETA) and Counts 56 and 57 (ITA); acquitted on Count 53; stays of conviction entered on Counts 1 and 2, Counts 5 through 28 and Counts 54 and 55 pursuant to Kienapple.
Legal Topics
Income Tax Act Offences, Excise Tax Act Offences, Tax Evasion, Hst/gst Remittance, Wilful Blindness, Mens Rea and Actus Reus
Source Language
English
Tax Law Criminal Law Income Tax Act Offences Excise Tax Act Offences Tax Evasion Hst/gst Remittance Wilful Blindness Mens Rea and Actus Reus

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Parties

Her Majesty the Queen

Crown

Christopher Cromwell

Accused

3020636 Nova Scotia Limited

Accused (corporation)

Procedural Posture

Criminal Tax Evasion and Excise Tax (hst) Offences / Trial Decision (provincial Court)

Legal Issues

  1. 1 Whether deposited cheques and cash were taxable income or loans/gifts
  2. 2 Whether the accused knowingly and intentionally evaded income tax and HST (mens rea)
  3. 3 Whether reliance on accountant or accountant's assistant excuses non-reporting

Ratio Decidendi

On the totality of the evidence the Crown proved beyond a reasonable doubt that Cromwell consciously and systematically excluded cheque and cash income from his worksheets and HST calculations, knew tax was owing and intended to avoid payment, therefore he and the corporation were guilty of the specified Income Tax Act and Excise Tax Act counts; Count 53 acquitted and overlapping counts stayed under Kienapple.

Court Disposition

Convicted on Counts 3 and 4 (ITA) and Counts 29 through 52 (ETA) and Counts 56 and 57 (ITA); acquitted on Count 53; stays of conviction entered on Counts 1 and 2, Counts 5 through 28 and Counts 54 and 55 pursuant to Kienapple.

Orders

  • Convicted on Counts 3 and 4 (Income Tax Act)
  • Convicted on Counts 29 through 52 (Excise Tax Act)