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)

Nanaimo restaurant owners awarded $1.7M in lawsuit

Supreme Court of B.C. justice finds CRA investigators were gleeful about anticipated prosecution

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 “vicariously liable” for the conduct of an investigator in prosecuting Tony and Helen Samaroo for tax evasion and found that the CRA’s conduct was “high-handed, reprehensible and malicious.”

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 “call for a guillotine.”

The Samaroos commenced their lawsuit in 2012, positing that CRA employees initiated a prosecution “without reasonable and probable grounds and with malice,” according to last week’s judgment. The defendant argued that there was no evidence to suggest that there wasn’t “reasonable and probable cause” for prosecution, “nor is there evidence that the defendants acted for a purpose other than to place the case before the court for adjudication.”

Punnett wrote in his judgment that after CRA employees “looked forward with unprofessional glee to the plaintiffs’ anticipated conviction and sentencing and their resulting ruination.”

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 “no amount of punitive damages will cause the CRA financial hardship.”

Just Posted

Langley overpass widening completed

The 208th Street overpass is now four lanes.

Man airlifted to hospital following mushroom farm stabbing

Abbotsford Police speaking with two men from the scene

Abbotsford man faces charges in Delta hit and run

Five men were injured in the June 2017 incident in Ladner

Langley Township council candidate works with PuCKS

The newest candidate was born and raised in Langley.

Motorcyclist slides under dump truck

Bike operator lucky to survive collision at Aldergrove intersection

Police release video on how to ‘run, hide, fight’ if there’s an active shooter

Vancouver police offer video with input from E-Comm, BC EHS, Vancouver Fire and Rescue

B.C. dad pens letter urging overhaul of youth health laws after son’s fatal overdose

The Infants Act currently states children under 19 years old may consent to medical treatment on own

Singh sides with B.C. in hornet’s nest of pipeline politics for the NDP

Singh had called for a more thorough environmental review process on the proposal

Aldergrove students build community ties

Friendly baseball game between students and Langley Mounties enjoyed by all

VIDEO: Campers leave big mess at rural Vancouver Island campsite

Vehicle parts, garbage, a mattress, lawn chairs, beer cans, and even fecal matter left in the area

30 C in B.C., 30 cm of snow expected for eastern Canada

It might be hot in B.C., but the rest of Canada still dealing with cold

Classic folk music at Aldergrove event

True North Troubadours perform Saturday in community fundraiser

Horgan defends fight to both retain and restrict Alberta oil imports

Alberta says pipeline bottlenecks are kneecapping the industry, costing millions of dollars a day

RCMP caution boaters after two kids pass out from carbon monoxide poisoning

Both children were given oxygen and taken to hospital

Most Read