Debbie Anderson outside the Chilliwack Law Courts after her trial wrapped up July 6, 2017. Anderson was convicted with evading taxes and fraud for teaching others that paying income taxes is optional. She was sentenced to 4.5 years jail, a sentenced she is now serving after being arrested Dec. 19, 2019. (Paul Henderson/ The Progress)

Debbie Anderson outside the Chilliwack Law Courts after her trial wrapped up July 6, 2017. Anderson was convicted with evading taxes and fraud for teaching others that paying income taxes is optional. She was sentenced to 4.5 years jail, a sentenced she is now serving after being arrested Dec. 19, 2019. (Paul Henderson/ The Progress)

Infamous Lower Mainland tax cheat ‘educator’ is back in prison

Debbie Anderson was a no-show for 2018 appeal of 4.5-year jail term but was arrested Dec. 19, 2019

The long saga of one of Chilliwack’s infamous tax protesters may finally be over as she was arrested in a parking lot before Christmas and is now serving her 4.5-year prison sentence.

Debbie Arlene Anderson was a follower of well-known ‘natural person’ tax scam educator Russell Porisky who was sentenced to four years in jail and handed fines of just under $260,000 in 2016.

Porisky’s appeal was rejected by the BC Court of Appeal on April 30, 2019.

• READ MORE: Chilliwack ‘natural person’ tax scam teacher loses at BC Court of Appeal

When she was arrested on Dec. 19, Anderson had been on the lam since April 17, 2018 when she didn’t show up to her BC Court of Appeal hearing. Because she didn’t show up, her appeal was denied and the warrant was issued.

She still, however, has the right to appeal her sentence. Anderson appeared in Vancouver court on Dec. 23 where she was in a reverse onus position regarding bail pending that appeal. The hearing was brief, but the judge ordered her detained, which means she is now serving her 4.5-year sentence.

Russell Anthony Porisky was convicted and sentenced in 2016 in connection with a major income tax evasion scheme, and sentenced to four years in jail and fined $260,000. (YouTube)

Anderson was part of Paradigm Education Group under the leadership of Russell Porisky, which taught the tax protester ‘natural person’ theory. She was said to have approximately 100 students who paid seven per cent of their income in order to arrange their affairs to pay no income tax or GST.

In all, Paradigm was said to have 800 students.

The basis of the fraud is the teaching that, essentially, income tax is optional. A natural person is an individual human being, as opposed to a legal or an artificial person. If you declare yourself a natural person and arrange your affairs as such, so goes the scam, you are not a taxable entity.

The fraud has been rejected by courts over and over, yet Anderson has been one of the strongest advocates and refused to accept the ruling against her when it first happened.

During her sentencing hearing she entered no submissions, but tried to re-argue her case. Anderson claimed that Crown’s argument that a person cannot “contract out” of paying taxes made no sense because she never contracted in.

“It would be like Walmart dragging me in to shop there,” she said.

• READ MORE: Chilliwack woman convicted of tax evasion and counselling others

At that point, Justice Neill Brown politely explained how incorporation works, even beyond private business and with levels of government such as Canada.

Anderson earned at least $165,000 over 2005, 2006 and 2007, and declared zero income for the first two years and did not file an income tax return for 2007.

She was convicted on Nov. 3, 2017 of tax evasion and making false statements under the Income Tax Act (ITA), failure to make GST payments under the Excise Tax Act (ETA), and counselling others to commit fraud under the criminal code.

It’s hard to nail down exactly how much Paradigm’s collective fraud cost taxpayers, one estimate is approximately $11.5 million.

In a statement issued a day after the sentence, the CRA warned Canadians to beware of “tax protesters” who try to convince people that income tax is optional.

“Canadian courts have repeatedly and consistently rejected arguments made in these tax protester schemes,” the statement said. “For those involved in tax protester schemes, the CRA will reassess income tax and interest, and charge penalties. In addition, if convicted of tax evasion, the court may fine them up to 200 per cent of the tax evaded and sentence them for up to a five-year jail term. More information on tax protester schemes is available at Canada.ca/tax-alert.”

READ MORE: Follower of Chilliwack-based tax protest scheme off to jail


@PeeJayAitch
paul.henderson@theprogress.com

Like us on Facebook and follow us on Twitter.

BC Supreme Court

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Dorothy Peacock Elementary in Langley was the latest school to be issued a COVID-19 exposure alert by the local district on Monday evening. (Google)
12 Langley schools on COVID-19 exposure alert, Dorothy Peacock latest addition

Families at four schools were issued letters Monday

Gayle Hallgren is concerned about how a proposed cannabis shop will change Fort Langley. (Hallgren photo)
LETTER: Cannabis shops will harm Fort Langley’s charm

A local letter writer questions why the village needs a pot shop

Google Maps screenshot taken at 7:06 a.m.
Early-morning crash on Highway 1 has morning commuters in gridlock

Westbound crash occurred in Langley, west of 264th Street; left lane blocked

Fraser Health has announced another COVID exposure at Brookswood Secondary. (Google Maps)
UPDATE: Two elementaries added to Brookswood in latest Langley schools with COVID exposure

Three school alerts Monday follow on the heels of five issued this past weekend

Fort Langley’s proposed new truck route is outlined in red. It would move most truck traffic around the village of Fort Langley. (Langley Township Engineering/Special to the Langley Advance Times)
Fort Langley truck route plans to be decided in 2021

Township council will decide on the project during the budget process next year

People wearing face masks to help curb the spread of COVID-19 cross a street in downtown Vancouver, on Sunday, November 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. reports 17 COVID deaths, 1,933 new cases as hospitalizations surge over the weekend

There are 277 people in hospital, of whom 59 are in ICU or critical care

Prime Minister Justin Trudeau speak to the media about the COVID-19 virus outside Rideau Cottage in Ottawa, Friday, Nov. 20, 2020. THE CANADIAN PRESS/Adrian Wyld
Canada’s inability to manufacture vaccines in-house will delay distribution: Trudeau

First doses of COVID-19 vaccine expected in first few months of 2021, prime minister says

Phillip Tallio was just 17 when he was convicted of murder in 1983 (file photo)
Miscarriage of justice before B.C. teen’s 1983 guilty plea in girl’s murder: lawyer

Tallio was 17 when he pleaded guilty to second-degree murder in the death of his 22-month-old cousin

This undated photo issued by the University of Oxford shows of vial of coronavirus vaccine developed by AstraZeneca and Oxford University, in Oxford, England. Pharmaceutical company AstraZeneca said Monday Nov. 23, 2020, that late-stage trials showed its coronavirus vaccine was up to 90% effective, giving public health officials hope they may soon have access to a vaccine that is cheaper and easier to distribute than some of its rivals. (University of Oxford/John Cairns via AP)
VIDEO: How do the leading COVID vaccines differ? And what does that mean for Canada?

All three of the drug companies are incorporating novel techniques in developing their vaccines

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

An aerial shot of Cedar Valley Lodge this past August, LNG Canada’s newest accommodation for workers at the project site in Kitimat. This is where several employees are isolating after a COVID-19 outbreak was declared last Thursday (Nov. 19). (Photo courtesy of LNG Canada)
Forty-one positive COVID-19 cases associated with the LNG Canada site outbreak in Kitimat

Thirty-four of the 41 cases remain active, according to Northern Health

7-year-old Mackenzie Hodge from Penticton sent a hand-written letter to premiere John Horgan asking if she’d be able to see her elf, Ralph under the new coronavirus restrictions. (John Horgan / Twitter)
Elf on the shelf an acceptable house guest, B.C. premier tells Penticton girl

A 7-year-old from Penticton penned a letter asking if she’d be allowed to see her elf this year

Workers arrive at the Lynn Valley Care Centre seniors home, in North Vancouver, B.C., on Saturday, March 14, 2020. It was the site of Canada’s first COVID-19 outbreak in a long-term care facility. THE CANADIAN PRESS/Darryl Dyck
Rapid tests ‘not a panacea’ for care homes, Dr. Bonnie Henry says

B.C. lacks capacity for daily tests of thousands of workers

Most Read