Mr. Joslin

The defendants were convicted of 69 counts under the Employer Health Tax Act and 62 counts under the Retail Sales Tax Act, involving the failure to remit over $1,675,000 in taxes.

The sentencing decision addresses a sophisticated, multi-year tax evasion scheme involving the operation of multiple related corporations and the deliberate mischaracterization of employment relationships.

The court imposed a custodial sentence of 21 months imprisonment, substantial fines totaling approximately $9.9 million, and probation, finding that the offences constituted fraudulent conduct warranting incarceration despite the defendant's lack of prior criminal record.

The applicant brought a motion to terminate or reduce his spousal support obligations, arguing a material change in circumstances following his involuntary retirement and the depletion of his assets.

The court found that the applicant's $4.5 million severance payment should be treated as income replacement for four years, delaying the material change to January 1, 2012.

The court imputed income to both parties based on their capital assets and reduced the applicant's spousal support obligation to $5,099 per month.

The court also ordered the applicant to pay COLA arrears on an after-tax basis, eliminated his life insurance obligation, but maintained his obligation to provide health benefits.

The appellant wife appealed the trial judge's order regarding spousal support and equalization of net family property.

She argued the trial judge erred in finding she could contribute to her own support despite her claims of post-traumatic stress disorder, and erred in excluding funds the respondent husband managed for his father from his net family property.

The Court of Appeal dismissed the support appeal, finding no error in the trial judge's assessment of her employability.

However, the Court allowed the equalization appeal in part, holding that while the $500,000 principal was held on resulting trust for the father, the $140,000 in investment income generated by the respondent belonged to him and must be included in his net family property.