Fighting the tax man, and losing

By Dan Hilborn
Published March 16, 2005


One of Burnaby's best-known political agitators plans to appeal his conviction of failing to file income tax returns after being hit with $10,000 in fines by the Canada Revenue Agency this month.

Gordon Watson, a long-time pro-life advocate, was convicted last summer on 10 counts of failing to file personal income tax returns between the years 1991 and 2000.

Last month in B.C. Provincial Court in Vancouver, Watson argued unsuccessfully on his own behalf that the Canada Income Tax Act is unconstitutional.

The provincial court judge gave Watson until June 1 to file the missing income tax returns and until March 1, 2006 to pay the fines.

But, while Watson does intend to file the missing returns, he claims to have neither the money nor the inclination to pay the exorbitant fine.

"I never owed them any money to start with, and they knew that," said Watson. "I was an activist for much of that time, and I deliberately didn't take in any money. I deliberately lived at a poverty level, and I was not on welfare."

"I also deliberately did not keep any records," he said.

Watson, who began his constitutional fight against the income tax act seven years ago, believes that his pending appeal to the B.C. Supreme Court will afford him his first real opportunity to argue against the tax act on the basis of its constitutionality.

"When you get to the higher courts, they take a better look at the constitutional questions," he said. "In my case, privacy was one of the main points."

Watson's extensive arguments, which occupied 17 days on the court calendar, included claims that the government is not legally entitled to hold onto Canadian's income tax returns, and that those returns are vulnerable to being viewed under the U.S.A. Patriot Act.

He also took issue with the B.C. income tax laws, which he claimed have not been updated in 40 years. "Read the provincial income tax act," he said. "Half of the sections say that whatever's in the federal act, we say that too. That is categorically unconstitutional."

Watson also takes exception to the claim that he "refused" to file his tax returns. "I told the judge they still have to tell me how to file. I don't know how. But they don't comprehend that."

A press release issued on March 7 by the Canada Revenue Agency has a different view of what transpired. The court "upheld the constitutionality of the legislation and dismissed his arguments," said the statement.

"When people are convicted of failing to file tax returns, in addition to any fines imposed by the court, they are still obligated to file the returns and pay the full amount of taxes owing, plus interest owed, as well as any civil penalties that may be assessed by the CRA," said the press release.