Connie Zary

The offender pleaded guilty to five counts of fraud over $5,000 for evading personal and corporate income taxes and failing to remit GST/HST, totaling over $1.6 million.

The court accepted a joint submission for a penitentiary sentence of two and one-half years.

The court also found that the offender had misappropriated and hidden significant cash, establishing her ability to pay a fine.

A fine of $833,238 was imposed, with five and one-half years to pay.

The Canada Revenue Agency investigated the appellants for tax fraud involving approximately 5,000 tax returns and $15 million.

The CRA sought a further extension to retain seized materials under s. 490(2) of the Criminal Code, which a Justice of the Peace denied, citing the pace of the investigation.

The Superior Court quashed the denial on certiorari, finding the Justice of the Peace failed to apply the correct test.

The Court of Appeal dismissed the appeal, agreeing that the focus under s. 490(2) must be on the needs of the ongoing investigation rather than usurping investigatorial discretion.