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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 香蕉视频直播渧icariously liable香蕉视频直播 for the conduct of an investigator in prosecuting Tony and Helen Samaroo for tax evasion and found that the CRA香蕉视频直播檚 conduct was 香蕉视频直播渉igh-handed, reprehensible and malicious.香蕉视频直播

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 香蕉视频直播渃all for a guillotine.香蕉视频直播

The Samaroos commenced their lawsuit in 2012, positing that CRA employees initiated a prosecution 香蕉视频直播渨ithout reasonable and probable grounds and with malice,香蕉视频直播 according to last week香蕉视频直播檚 judgment. The defendant argued that there was no evidence to suggest that there wasn香蕉视频直播檛 香蕉视频直播渞easonable and probable cause香蕉视频直播 for prosecution, 香蕉视频直播渘or is there evidence that the defendants acted for a purpose other than to place the case before the court for adjudication.香蕉视频直播

Punnett wrote in his judgment that after CRA employees 香蕉视频直播渓ooked forward with unprofessional glee to the plaintiffs香蕉视频直播 anticipated conviction and sentencing and their resulting ruination.香蕉视频直播

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 香蕉视频直播渘o amount of punitive damages will cause the CRA financial hardship.香蕉视频直播



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