R. v. Spears

R. v. Spears

On the whole of the evidence the Crown failed to prove beyond a reasonable doubt that Darrell Spears acted dishonestly with the subjective intent to deprive or willfully evade tax; circumstantial facts admitted of reasonable non-criminal explanations (financial distress, attempts to retain viable business, professional advice and cooperation with CRA), therefore acquittal was required.

Citation
2017 NSPC 53
Parties
Crown: Her Majesty the Queen; Accused: Darrell Spears; Accused Company: Spears Framing Limited; Accused Company: Spears Concrete Formwork Inc.; Accused Company: SCF Services Incorporated
Court
Nova Scotia Provincial Court
Jurisdiction
Canada
Judgment Date
16 October 2017
Procedural Posture
Criminal Fraud and Tax Evasion / Trial Decision (provincial Court)
Outcome
Acquitted on all counts (Not guilty on Counts 1–5)
Legal Topics
Fraud, Tax Evasion, Deemed Trust, Director's Liability, Corporate Restructuring
Source Language
English
Criminal Law Tax Law (hst/gst/income Tax) Corporate Law (director's Liability) Fraud Tax Evasion Deemed Trust Director's Liability Corporate Restructuring

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Parties

Her Majesty the Queen

Crown

Darrell Spears

Accused

Spears Framing Limited

Accused Company

Spears Concrete Formwork Inc.

Accused Company

SCF Services Incorporated

Accused Company

Procedural Posture

Criminal Fraud and Tax Evasion / Trial Decision (provincial Court)

Legal Issues

  1. 1 Whether accused dishonestly misappropriated deemed trust funds (payroll source deductions and HST)
  2. 2 Whether accused had the requisite mens rea (intention to deprive/evade) for fraud under Criminal Code s.380(1)(a)
  3. 3 Whether accused willfully evaded HST remittances contrary to Excise Tax Act s.327(1)(c)

Ratio Decidendi

On the whole of the evidence the Crown failed to prove beyond a reasonable doubt that Darrell Spears acted dishonestly with the subjective intent to deprive or willfully evade tax; circumstantial facts admitted of reasonable non-criminal explanations (financial distress, attempts to retain viable business, professional advice and cooperation with CRA), therefore acquittal was required.

Court Disposition

Acquitted on all counts (Not guilty on Counts 1–5)

Orders

  • Count 1: Not Guilty - s.380(1)(a) Criminal Code (alleged deprivation $766,788.67)
  • Count 2: Not Guilty - s.327(1)(c) Excise Tax Act (Spears Framing Limited alleged HST $143,039.97)