B.C. couple who ran bogus anti-tax school lose CRA assessment appeal

Darryl Greer · The Canadian Press

· Posted: Nov 06, 2025 10:11 PM EST | Last Updated: November 7

A British Columbia mates who ran acquisition seminars promoting the bogus conception that radical don't person to wage taxes person mislaid their entreaty against taxation bills connected $1.4 cardinal successful gross from the scheme.

The Federal Court of Appeal successful Vancouver ruled this week that Russell Porisky and Elaine Gould's entreaty of the taxation assessments connected gross generated betwixt 2004 and 2008 had "no merit," aft the Tax Court of Canada rejected their arguments past year.

Porisky and Gould were convicted of taxation evasion successful 2016, years aft they ran acquisition seminars nether the banner of Paradigm Education Group, which promoted ways to debar taxation that they believed was a signifier of slavery.

The Tax Court of Canada ruled past twelvemonth that Gould and Porisky did deduce taxable income from Paradigm's activities, uncovering they offered "a convoluted and head-spinning mentation of the taxation authorities that relies connected semantics to accidental that the Income Tax Act and Excise Tax Act bash not use to their situation."

"The Paradigm strategy was based connected the presumption that the taxation authorities tin beryllium interpreted successful specified a mode arsenic to let 1 to opt retired of paying income taxation oregon collecting GST," the Tax Court ruling says.

Both Porisky and Gould were assessed for failing to study much than $569,000 successful income earned betwixt 2004 and 2008, and were besides fixed penalties for "gross negligence."

Porisky told the tribunal that helium came to judge that determination was a "duality" betwixt taxpayers, a favoritism betwixt alleged "natural versus artificial" persons which could beryllium utilized to opt retired of paying taxes.

"He explained that successful his view, income taxation was really a labour taxation resulting successful a signifier of slavery, which successful crook was a transgression against humanity," Judge Susan Wong wrote.

Wong's ruling says Porisky was sentenced to 5 and a fractional years successful situation for taxation evasion and counselling to perpetrate fraud, and fined much than $239,000.

Gould, the ruling says, was sentenced to six months successful situation and fined much than $38,000 for income taxation evasion. She was held liable for 20 per cent of the taxation evasion strategy and Porisky the different 80 per cent.

The Appeal Court ruling says Porisky and Gould held seminars, sold tickets, wrote books and grooming materials nether the Paradigm name, generating $1.4 cardinal implicit 5 years portion reporting nary income and paying nary tax.

The ruling says their entreaty hinged connected Porisky's mentation of a Supreme Court of Canada ruling, believing that "because they assertion they had nary subjective volition to gain a profit, the appellants’ activities were not a root of income, but a idiosyncratic endeavour."

The three-judge sheet recovered those views person been "consistently" rejected by the court, and that the entreaty had nary merit, dismissing the lawsuit years aft the mates were convicted of taxation evasion and sent to prison.

Porisky and Gould did not person a lawyer arguing their lawsuit and neither could not beryllium reached for remark connected the latest ruling.

Several followers and "educators" who were progressive with Paradigm person besides been charged, convicted and fined.

The Canada Revenue Agency (CRA) announced successful December 2022 that Eric Ho of Richmond, B.C., had been sentenced to 30 months successful jailhouse and fined much than $122,000 for taxation evasion and counselling to perpetrate fraud aft a decennary "on the run" from the charges.

The bureau said Ho was a Paradigm "educator" who failed to study much than $582,000 successful income betwixt 2004 and 2008.

West Vancouver dentist Dr. Peter Balough was fixed an 18-month conditional condemnation and fined much than $578,000 for taxation evasion successful B.C. Provincial Court.

The bureau began investigating Balough aft helium began invoicing his ain dental signifier arsenic a contractor successful 2005, uncovering helium "was an adherent of the Paradigm Education Group which promoted the pseudo‑legal conception that a idiosyncratic tin self‑classify arsenic a 'natural person', and thereby beryllium exempt from the outgo of income tax."

The CRA characterizes specified radical arsenic "tax protesters [who] enactment the mendacious conception that they bash not person to wage taxation connected income they earn."