The appellant, William Mori, appealed convictions and sentences for income tax evasion and making false statements under the Income Tax Act.
The trial judge found Mori guilty of evading tax for three years, imposing consecutive four-month imprisonment terms and fines.
Mori argued errors in declining to exclude evidence obtained during a tax audit and in finding the requisite mens rea, and that the sentence was unfit.
The appeal court upheld the trial judge's findings on the audit's predominant purpose, concluding it was a civil audit until specific evidence of all invoices was received, and rejected Mori's "natural person" tax protestor theory as a valid defence to mens rea.
The court also found no errors in principle in the sentencing, affirming the 12-month imprisonment and fines, emphasizing general and specific deterrence against tax evasion, particularly in light of the growing "natural person" movement.
