Montréal resident Timothée Bessette pleaded guilty, on November 18, 2016, to a tax fraud charge before the Court of Quebec in Longueuil. On November 23, 2016, he was sentenced to eighteen months in jail.
Court records say a Canada Revenue Agency investigation revealed that, for the 2003 to 2010 tax years, Timothée Bessette advised and helped 11 individuals to avoid or try to avoid paying more than $390,000 in income tax by claiming inadmissible expenses to reduce or cancel their taxable income. The records say this scheme is based on an argument brought forth by the tax protester movement.
Court records say the activities for which Bessette has been charged occurred between July 2009 and October 2010. They note that during that period, he acted as a facilitator for Christian Lachapelle, a tax protester scheme promoter. The records say Lachapelle, for his part, pleaded guilty to tax fraud charges on October 22, 2015.
The scheme consisted of helping or advising individuals to file income tax returns or request a reassessment using the distinction between a “natural” person and a “legal” person. According to this false argument made by tax protesters, there are two distinct persons for tax purposes. Canadian courts have repeatedly and consistently rejected such arguments.
The CRA warns all Canadians to beware of tax protesters. For those involved in tax protester schemes, the CRA will reassess income tax and interest, and charge penalties.