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Clarke and Mary Margaret Webster of Ottawa, Ontario, pleaded guilty in the Superior Court of Justice in Ottawa on January 7, 2013 to one count each of evasion, bringing to a close a “preposterous” scheme to sidestep the law.

A CRA investigation found that Clarke Webster failed to report $791,410 in income he earned from 2004 to 2009, during which time he followed a tax evasion scheme promoted by Russ Porisky through the Paradigm Education Group.

Read: CRA targets tax protesters

The Paradigm scheme is based on the faulty premise that the federal government cannot impose a direct tax on a human being because it would be unconstitutional and further, that taxing the labour of a human being would violate the Canadian Bill of Rights as it is a confiscation of property. Mary Margaret Webster, who also followed the Paradigm scheme, failed to report the $370,500 in income she earned from working at her husband’s dental practice for tax years 2004 to 2008.

Read: Trucker fined for tax evasion

Clarke Webster was sentenced to a one-year conditional sentence, including six months of house arrest and fined $263,811. Mary Margaret Webster was sentenced to a six-month conditional sentence, including three months of house arrest, and fined $78,596. Both fines represent 100% of the total federal income tax evaded, and are due paid in full by January 7, 2014.

Read: Quebec company fined $33,000 for tax evasion

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