Grande Prairie 'tax protesters' fined nearly half million dollars for tax evasion

A Grande Prairie couple who say they believe taxes are a form of slavery have been fined nearly half a million dollars for tax evasion.

Robert Dale Steinkey, 60, has been sentenced to a fine of $322,000, plus a conditional jail sentence of 22 months. His wife, Terry Lynn Steinkey, 63, was sentenced to a fine of more than $164,000 and a conditional jail sentence of 18 months.

On Dec. 7, 2015 both husband and wife pleaded guilty in Alberta provincial court to evading federal incomes taxes of $486,000 for the 2007 and 2008 tax years — an amount equal to the fines.

In addition to the court imposed fines, the pair will have to repay the full amount of taxes owed to the Canada Revenue Agency.

Evidence showed the couple were introduced to the Paradigm Education Group, and adopted the group's beliefs that as "natural persons" they were not subject to incomes taxes.

The tax protester group, based in Chilliwack, B.C., was founded by Russell Porisky, who says he believes taxes were a form of slavery.

B.C.-based group held tax-avoidance seminars

According to the CRA, Paradigm sold books, DVDs, CDs and also had people pay for seminars that "educated" them on how to avoid paying income taxes.

Porisky, of Chilliwack, was sentenced to five-and-a-half years in jail and fined $259,482 in August last year. To date, 31 people have been convicted of criminal tax evasion offences related to their participation with Paradigm.

All Canadians should beware of tax protesters who try to convince people they don't have to pay taxes, the CRA said in a news release.

"These individuals, also known as tax protesters, not only fail to report their own earnings but also conspire, counsel, and promote these tax schemes," reads a statement from the CRA. "Canadian courts have repeatedly and consistently rejected arguments made in these tax protester schemes ... if convicted, they could face significant fines and possible jail time."