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

Squamish’s Niki Hurst and Christen Young took part in this year’s Furry Tails virtual race, a fundraiser for LAPS. (Special to Langley Advance Times)
Friends take Langley animal shelter run to Squamish trails

Animal welfare group’s annual run goes virtual, raises $7,500-plus

Three vehicles were involved in a crash on the afternoon of Friday, May 7, 2021, at the intersection of Fraser Highway and 208th Street. (Heather Colpitts/Langley Advance Times)
Three-vehicle Langley intersection crash leaves car on its side

There were no serious injuries resulting from a Friday afternoon crash on a major City roadway

Have an opinion you’d like to share? Submit letters to the editor through our website, via email or the postal service. (Heather Colpitts/Black Press Media)
LETTER: Constituent sides with Langley MP in conversion therapy controversy

MP’s words were taken out of context, says local letter writer

Tim and Janet Kreiter with a model Tim built showing the eventual plan for a five to 10 acre community garden the couple hopes to create in Langley. A pilot project is running this spring at TWU. (Matthew Claxton/Langley Advance Times)
New Langley community garden almost ready for Victoria Day opening

Organizers are excited to welcome the first gardeners

This letter was sent to members of the Kwantlen First Nation on Thursday, March 6, about allegations regarding some of the nation’s businesses enterprises. (Special to the Langley Advance Times)
Kwantlen First Nation warned of ‘allegations’ about business group

Letter to members said a third-party investigation will take place

(The Canadian Press)
Trudeau won’t say whether Canada supports patent waiver for COVID-19 vaccines

‘Canada is at the table to help find a solution’

A sign indicating face coverings are required by the establishment is pictured on the front door of a business in Vancouver, B.C., Friday, April 9, 2021. COVID-19 cases have been on a steady increase in the province of British Columbia over the past week. THE CANADIAN PRESS/Jonathan Hayward
A sign indicating face coverings are required by the establishment is pictured on the front door of a business in Vancouver, B.C., Friday, April 9, 2021. COVID-19 cases have been on a steady increase in the province of British Columbia over the past week. THE CANADIAN PRESS/Jonathan Hayward
B.C. to start releasing neighbourhood-specific COVID numbers after data leak

Documents obtained by the Vancouver Sun show cases broken down by neighbourhoods

Provincial health officer Dr. Bonnie Henry and Health Minister Adrian Dix update B.C.’s COVID-19 situation at the B.C. legislature, April 29, 2021. (B.C. government)
B.C.’s COVID-19 case count creeps up, seven more deaths

445 people in hospital, 157 in intensive care

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

Summerland’s positive test rate is much higher than surrounding local health areas, according to internal BC CDC documents. (BC CDC)
Summerland 3rd behind Surrey, Abbotsford in daily per capita COVID-19 cases

Interior Health is rolling out additional vaccine availability to the community

Mandeep Grewal was gunned down outside an Abbotsford bank in October 2018. Police said a violent gang war to control drug-line territory was going on at that time. Drug charges have now been announced against seven people. (FILE PHOTO: John Morrow/Abbotsford News)
7 people face 38 charges related to gang drug activity in Abbotsford and Mission

Police say investigation began in 2018 into expansion of Brothers Keepers’ drug line

Amazon is pausing its Prime Day marketing event in Canada this year amid ongoing COVID-19 outbreaks at its facilities in Ontario. THE CANADIAN PRESS/Nathan Denette
Amazon Prime Day halted in Canada due to COVID-19 outbreaks in warehouses

The event was postponed to protect the health and safety of employees and customers, the company says

Ally Thomas, 12, seen in an undated family handout photo, died on April 14 from a suspected overdose. Her family says they are frustrated more public supports weren't available when they tried to get her help. THE CANADIAN PRESS
Minister says suspected overdose death of 12-year-old pushing B.C. to ‘do better’

Minister Sheila Malcolmson of Mental Health and Addictions says the government is working ‘as hard as we can’ to build a system of care for youths

At this Highway 3 check point, police officers will be asking for identification from drivers, documentation regarding the driver’s name and address, and the purpose for the driver’s travel. (RCMP)
No fines handed out at 1st COVID-19 roadblock as checks move across B.C.

Cpl. Chris Manseau says a total of 127 vehicles were stopped at a roadblock in the Manning Park area

Most Read