Tax Law Blog Project – Kevin Trudeau, Canadian Taxes and Tax Fraud

March 24th, 2014 by

Kevin-Trudeau-tax-fraudI grew up watching Kevin Trudeau plastered across my late night television set; we may even have one of his home remedy books lying around the house. Well, the jig is up according to recent headlines like, “TV pitch man Kevin Trudeau gets 10 year jail sentence for fat cure fraud”…

You may be asking yourself what does Kevin Trudeau – self-proclaimed purveyor of all information dissemination They don’t want you to know about – have to do with Canadian taxes?  Quite a bit, actually.

You see, Mr. Trudeau became rich misrepresenting the contents of the millions of books he sold. Indeed, one of the books he authored was entitled: “Debt Cures They Don’t Want You To Know About”.  Tax fraud operates in much the same way.  The money lost from these misrepresentations is not the worst of it for the purchasers of Mr. Trudeau’s books or the victims of tax fraud, it’s what happens after the fact or doesn’t happen that makes the fraud so incendiary.

A lawyer for Mr. Trudeau argued that “if he swindled anyone – [he] swindled them out of $30 (the price of the book)”.  What the lawyer fails to mention is that the $30 per book amounted to more than $39 million in sales.  But because such a relatively small amount was taken from each individual purchaser or taxpayer as the case may be, it becomes nearly impossible for any one individual to justify spending more money pursuing the fraudster; it’s the classic death by one thousand cuts story.  Stealing $39 million dollars from one individual would have likely garnered litigation at the very least and a different result altogether.

According to the CRA, certain types of tax fraud are on the rise.  I would argue that that is at least in part because of what doesn’t happen after a tax fraud. That’s exactly why I’m glad They finally put Mr. Trudeau behind bars.

That’s the tax perspective, see you next week.

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