DnA 5-11: The Canadian Tax Revolt
CANADIAN BEATS TAX SYSTEM
This cute little story (happy ending included) comes from the Times-Colonist, a Canadian newspaper purchased in British Columbia. It tells the story of one Bruce Ryder, a sandwich-shop owner who refused to pay GST. (This is the Canadian Goods and Sevices Tax, a rather hefty VAT sales tax.) In the process of having his case thrown out of court on technicalities, he was able to thoroughly make fun of the GST Tax Nazi's, using various theatrical props, etc. While this is nice to see and fitting with our tax emphasis of late, one can see that Big Brother is hard at work in Canada as well as U.S. for an article warning people not to break tax laws and talking about severe penal ties for doing so was run on the same page.
Times-Colonist Friday, July 2, 1993
GST REFUSNIK GETS OFF CHARGES ON TECHNICALITY
By Richard Young
Times Colonist
Nanaimo
Bruce Ryder had no need for the get-out-of-jail-free cards or the play money he packed into court after a judge threw out GST-related charges against him.
The former sandwich-shop owner, who illustrates his oppositions to the goods and services taxwith a variety of theatrics, beamed after the decision Wednesday, but was realistic about his victory.
"The result today was not, and I do not want anybody and I hope the press will not construe this to the public as the GST was beaten," he said. "It wasn't beaten today. The war continues on this matter."
Ryder, who wore a T-shirt with a caricature of former prime minister Brian Mulroney stroked out, reading Brian Busters, dismissed a suggestion that it was a victory for the little guy.
"No, this is a case where justice and a free and democratic society, of which we have to take our country back to make sure it stays that way," he said.
Ryder, who says he doesn't collect or pay GST or pay personal or corporate income tax, was charged under the Excise Tax Act with failing to comply with a Revenue Canada request to turn over his business records.
He once rounded up supporters and media in anticipation of giving Revenue Canada auditors a stack of 45 RPM records in answer to a request for his business records.
Provincial Court Judge John Joe heard two Revenue Canada GST auditors testify Ryder was served a demand notice for his books but refused early in 1992.
The judge deliberated briefly before he dismissed the charge on a technicality.
Joe agreed with defence lawyer Doug Christie's argument there was insufficient evidence that the Revenue Canada district director who signed the demand notice had authority to do so.
Christie had also argued that the Sandwich Tree had been owned by a corporation and Ryder was an officer. He insisted that Revenue Canada has no right to demand records from an officer of a company. Joe didn't rule on that point.
He never dealt with Ryder's main beef, that the tax is unconstitutional. He maintains only the provinces have a right to direct taxation.
Christie suggested Revenue Canada back off Ryder in wake of the decision.
"Let's see what they do," he said. "One never knows, they might have enough wisdom to see that squashing little people doesn't make them look very good."
James Turner, a Victoria lawyer acting for the federal Crown, said he will review the decision before making a recommendation to Revenue Canada on whether an appeal should be launched.
More than a dozen Ryder supporters and family and friends whooped and cheered as Joe rendered his decision, prompting a court official to ask for quiet.
They quickly cleared out led by Ryder who toted his box of play money and two Monopoly get-out-of-jail free cards in his jean jackey pocket.
