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August 15, 2020 – 8:00 a.m.
A Kelowna business owner was found guilty of failing to file income tax returns for years after using what the judge described as “total nonsense” in court.
Steven James Merrill had argued that he was not a “person” under the Income Tax Act and that he had been wrongly charged.
Provincial Court Justice Robin Smith did not buy the argument that such “straw man logic” contradicted any rational answer.
According to the decision, released on Aug. 7, Merrill was served a tax return notice from 2014 to 2017. Merrill failed to meet a final May 1, 2019 deadline and was charged in court for four times non-compliance with notices to file income tax returns
In the judge’s decision, which in part looks more like a parent yelling at an unruly child than a trial, Merrill argued that the Canadian tax authorities had wrongly conspired against him. In the decision, the judge does not go into the conspiracy and says it is “not worth further analysis”.
Merrill argued that the notice letters for filing his T1 served on him were invalid because he did not accept them and the tax officer placed them at his feet. He also argued that the subpoena had no authority over him as it was being served under the name “Steven James Merrill” rather than the “Steve Merrill” with which the Canadian Treasury had addressed him in a letter years earlier.
Judge Smith described this as “total nonsense”.
Merrill also falsely argued that only one company had to respond to notices from the rating agency that the records were invalid because they did not contain a seal, flag, coat of arms or official insignia. He made further arguments that the court did not have jurisdiction to consider the matter unless the judge confirmed his oath of allegiance to Her Majesty.
“These arguments have no reality,” said Judge Smith.
The court ruling states that Merrill, owned by the Sun City Silver and Gold Exchange in Kelowna, represented himself and at the beginning of the trial refused to file a motion that the court had no authority over him.
“The court has a positive duty to be fair and courteous to litigants. This task becomes more complicated when a defendant chooses to be disruptive during much of the trial,” the ruling reads. “Mr. Merrill was acting in a very obstructive manner to the completion of the trial. He advised the court that the Crown had no legal reason to proceed as he eventually filed his tax returns. He asked the Crown to prove jurisdiction Before she did this the process continues. ”
At some point, Merrill spat with the judge and began packing up his things and leaving the courtroom. The decision gives an overview of the conversation.
“If you leave, the sheriffs will just arrest you,” said the judge.
“For what?” replied Merrill
“If you want to find out, just try to go and see what happens,” replied the judge.
The conversation continued until Judge Merrill said, “Because of your disapproval and disruptive behavior, you are now precisely in custody.”
The court documents state that Merrill eventually filed the tax return after the specified deadline. There is no mention of finance in the document.
“Mr. Merrill had appeared before me a number of times before on the matter, claiming he was only the defendant’s agent. I did not allow such an agency to show up. He was told that he was not the defendant who was being served . ” he would be free to go with the summons, but then there would be an arrest warrant against Mr. Merrill on whom the summons was served. On those occasions, Mr. Merrill did not deny that he was the person the subpoena was served, but he simply believed that the subpoena was either invalid or was served on the wrong person. With this in mind, however, the court informed him on July 13, 2020 that he would be arrested if he says he leaves the courtroom. “The court released Mr. Merrill from custody for cross-examination after Mr. Merrill promised to act in a manner that would not disrupt the process.”
After confusing arguments, all of which were rejected, Judge Smith finally summed up the case.
“In the simplest case, Mr. Merrill refused to file his personal tax returns on time when they were due for the 2014, 2015, 2016 and 2017 tax years,” the judge said. “I have no reasonable doubt that Mr. Merrill is guilty as a defendant, and I find him guilty in all respects.”
The decision does not provide for a penalty after the guilty verdict.
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