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)

Nanaimo restaurant owners awarded $1.7M in lawsuit

Supreme Court of B.C. justice finds CRA investigators were gleeful about anticipated prosecution

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 “vicariously liable” for the conduct of an investigator in prosecuting Tony and Helen Samaroo for tax evasion and found that the CRA’s conduct was “high-handed, reprehensible and malicious.”

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 “call for a guillotine.”

The Samaroos commenced their lawsuit in 2012, positing that CRA employees initiated a prosecution “without reasonable and probable grounds and with malice,” according to last week’s judgment. The defendant argued that there was no evidence to suggest that there wasn’t “reasonable and probable cause” for prosecution, “nor is there evidence that the defendants acted for a purpose other than to place the case before the court for adjudication.”

Punnett wrote in his judgment that after CRA employees “looked forward with unprofessional glee to the plaintiffs’ anticipated conviction and sentencing and their resulting ruination.”

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 “no amount of punitive damages will cause the CRA financial hardship.”

Just Posted

Tweedsmuir Park wildfires grow to encompass more than 200,000 hectares

Four fires now managed under one as Tweedsmuir Complex, evacation orders and alerts still in place

‘Beauty amongst such tragedy:’ B.C. photographer captures nature’s trifecta

David Luggi’s photo from a beach in Fraser Lake shows Shovel Lake wildfire, Big Dipper and an aurora

B.C. declares state of emergency as more than 560 wildfires rage

This is only the fourth state of emergency ever issued during a fire season

UPDATE: 5 injured in plane crash following Abbotsford International Airshow

One in critical condition in incident involving vintage plane

At least 14 illegal fires set in Fraser Valley this month

Conservation officers are fed up with people not listening to the province-wide fire ban

B.C. woman promoting ‘orange glow’ campaign to support firefighters

A Penticton woman is hoping an orange ribbon campaign will catch on throughout B.C.

Air Canada-led consortium signs deal to buy Aeroplan program

The deal would acquire the Aeroplan loyalty program from Aimia Inc

Microsoft uncovers more Russian attacks ahead of midterms

Evidence found of Russian hacking attempts targeting U.S. political groups

Animal crackers break free from their cages

PETA pressures Mondelez International to show animals roaming in their natural habitats

U.S. man admits slaying wife, blames her for daughters’ deaths

A 33-year-old Denver man is facing three first-degree murder charges

Muslims celebrate Eid al-Adha as pilgrims conduct hajj rites

More than 2 million pilgrims carry out the final rites of the hajj in Saudi Arabia

White Spot records B.C. Pirate Pak record day

Popular B.C.-Alberta event raises more than $116,000 to send kids and adults to Zajac Ranch

Most Read