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Tax Traitors: Fiscal Arbitrators Income Tax Recovery scheme promoters raided and charged by CRA

Tax Traitors: Fiscal Arbitrators Income Tax Recovery scheme promoters raided and charged by CRA - 4.2 out of 5 based on 420 votes

( 420 Votes )

Over the past ten years thousands of ordinary people across Canada – people like you – were invited by friends, co-workers, even family members, to attend a seminar that would help them get big tax refunds.

You were told it was all perfectly legal. The men running the seminar, Larry Watts and Carleton Branch, said they knew all the inside tricks at the CRA, and how CRA policies “trapped” you into paying tax. Branch claimed to have been a senior auditor for the CRA.  So you believed him when he said you were entitled to refile your tax returns and report fabricated business income and business losses in order to get a refund of the taxes that were deducted from your salary at source.

The cost: $500 upfront to Mr. Watts and co, and then 20% of the anticipated tax refund.

You handed over your tax returns – or gave him fresh ones to file. Mr. Watts and Mr. Branch found tax preparers to prepare and submit your returns. And presto… big, big tax refund.  Year after year. Until, one day a letter arrived from CRA “reviewing” your business expenses. And you were asked to provide details of your business, your employees, and all the other expenses you wrote off over the years.
 
Don’t worry, said Mr. Watts. The CRA’s position is illegal. You don’t have to answer them. Or if you do, here’s a guide on how to create dummy T4 slips for your dummy employees.
 
Eventually, CRA reassessed your returns, clawed back the refunds you received, with interest and, in many cases, heavy penalties for making false claims on your tax return.
 
In more recent years, you maybe didn’t get any refund… just the big penalties.
 
Don’t worry, said Mr. Watts again. We’ll object. We’ve even secured the services of a tax lawyer who will file the objection for you. Just send him $500 and sign this Objection. He’ll make it all go away. You haven’t done anything wrong.
 
And you didn’t hear anything for almost a year…. Until the tax lawyer, or Mr. Watts, or both, advised that your objection was not going to be successful, and that reassessments were coming from the CRA demanding payment of a huge reassessment. In some cases the tax bills are over $100,000. Enough to make bankruptcy a serious consideration.
 
But Mr. Watts said he could advise you on how to appeal to the tax court. He could do it even better than the tax lawyer, he said, so you should really pay him $500 and forget about the lawyer.
 
Except that Mr. Watts and Mr. Branch were already under criminal investigation by the Canada Revenue Agency, who had their residences raided in November 2012, and then charged both with defrauding Her Majesty and the public treasury by filing false income tax returns for clients and, of course, for themselves.
 
Conservatively, Fiscal Arbitrators and its promoters and tax filers have likely defrauded Her Majesty’s Treasury – your tax treasury – of hundreds of millions of tax dollars. Conservatively. (Now you know why your taxes are so high.)
 
Mr. Watts had his first court appearance on March 1, 2013. A date for Mr. Branch is no tknown. One of the tax preparers involved in the scheme has also been charged and appears in court Feb 28, 2013. Other agents and tax preparers are still at large or, in the case of one promoter from the Vancouver area, have escaped to foreign tax havens.
 
Leaving the people like you alone with the tax bills.   
 
 
 
Join the conversation below:

Bruce   10.02.2014 00:38
Larry Watts

I see from your article Mr. Watts first court appearance was feb. 2013. well a year has passed where is he now?

 
 
       
 
Jackie   01.03.2014 01:05
Larry Watts

Larry Watts seems to be taking the brunt of everything but where are the the other agents such as AJ Dynamics, DSC Lifestyle Services and Solution 21 who got us in this mess by introducing and promoting all the schemes!

 
 
       
 
Neil   05.06.2013 02:47

Great vid, thank You

 
 
       
 
Richard Skeen   01.06.2013 16:59
Be Informed

Everyone needs to know as much as they can about tax.

 
 
       
 
shirley v reeds   30.05.2013 22:09
awesome

great article

 
 
       
 
Sparkle   30.05.2013 17:39
Cheats

The people who fell for this were trying to cheat on their taxes. I don't feel as sorry for them as they do.

 
 
       
 
Elizabeth   29.05.2013 23:18

One of those things, if it sounds too good to be true don't go there.

 
 
       
 
Mike   24.05.2013 14:27
tax

check this out

 
 
       
 
Ostap   07.05.2013 14:41
I am one of the people fooled

The presentations were nice. There were always people saying that they have been filing with them for years and its all good. They were saying that they go to court and always win these cases. When you work 7 days a week and just to make ends meet, get a ton of taxes taken off every pay cheque and than at the end of the year get another bill for 3k more it really hurts and you look for solutions.
unfortunately this one really screwed me over.

 
 
       
 
PT   09.02.2014 00:11
Confused!

If you were making "ends meet", how did you have the money to pay these crooks?

 
 
       
 
 

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