ARTICLE · 16 APRIL 2019

$1.7M For CRA's "Malicious Prosecution" Set Aside On Appeal

KPK Law LLP

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The next step in this saga for the Samaroos would be to seek leave of this decision to the Supreme Court of Canada.

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The British Columbia Court of Appeal (the "BCCA") reversed (the "Decision") a landmark decision (the "Lower Court Decision") that had awarded a B.C. couple (the "Samaroos") $1.7 million in damages for the Canada Revenue Agency's (the "CRA") purported malicious prosecution of tax evasion.

The tort of malicious prosecution finds its origins in 13th century England. Its availability is important for asserting the rights of citizens to be free of excessive and unreasonable government prosecution. However, that interest has to be weighed against the public interest of having actual criminals face consequences.

The Supreme Court of Canada established the test for malicious prosecution in Miazaga v Kvello Estate, 2009 SCC 51:

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