Gurtina was assessed gross negligence penalties and now owes $39,000 plus interest. The CRA ruled the taxpayers were willfully blind. By then, Gurtina and hundreds of other clients were facing gross negligence penalties for signing false tax claims. Larry Watts was eventually charged in November 2012. She told W5 that “as soon as we knew that there was a scheme in place we put out the tax alert.”Īsked about the 2009 investigation, Betts said “I am not aware of the timeline on the investigation so I can’t really comment.” Susan Betts, is Director General at the CRA. The CRA finally issued a tax alert on – three weeks after the 2009 filing deadline. “There’s no alert from CRA, nothing to identify…that this is not a legit program.” Gurtina said she tried to check out Fiscal Arbitrators on the web. The CRA`s Taxpayer Bill of Rights promises “You have the right to expect us (CRA) to warn you about questionable tax schemes in a timely manner.” But there was no warning from the CRA before the 2009 filing deadline of Ap– months after the CRA investigation began. What Gurtina didn’t know was that while she was using the services of Fiscal Arbitrators and Larry Watts, the Canada Revenue Agency had launched a criminal investigation into his tax business scheme.Īn Application for a Search Warrant obtained by W5 reveals the investigation was definitely underway by Dec. “A lot of taxpayers questioned the language but they were told, we’re the experts, this is what you should send,” he said. Milot represents about 50 former clients of Fiscal Arbitrators. That response letter, which Gurtina later sent to the CRA, was, in tax lawyer Duane Milot’s words, “simply nonsensical.” It was peppered with curious Latin phrases and bizarre references to old tax legislation.
She asked for help and was instructed to let Larry Watts draft the answer to the CRA. Instead, she got a letter from the Canada Revenue Agency asking for proof she had a business. They’re the ones providing the services.” she said.īut Gurtina never saw that promised hefty refund. “Larry Watts and company know the process. Gurtina recalled being told taxpayers used the program the year before and got refunds. She paid her financial advisor $5,000 and they recommended the Fiscal Arbitrators program. Glenda Gurtina is a technical coordinator in Surrey, B.C. Their taxes were prepared and they signed on the dotted line. They were told that their taxes could be structured so that they could claim huge business losses and they were promised big refunds. But what happens if you pay thousands of dollars and then get bad advice?įor the 2009 tax year, nearly 1,800 Canadians were sold a program by a company called Fiscal Arbitrators run by Larry Watts.
Many Canadians seek advice from tax experts to make sure they only pay what they owe. Taxpayers can expect to receive benefits…credits… refunds and to pay no more than “required under the law.” It’s right there in the Taxpayer Bill of Rights. There is an old understanding that taxpayers have the right to structure their tax affairs so as to pay the least amount of money possible.