In
part one of this series, I considered the situation of
a hypothetical wealthy client who was involved in the
KPMG tax scheme promoted by a big accounting firm. In
the end, the taxpayer signed a settlement with the CRA. Part two
relates the story of a typical client of the Fiscal Arbitrators tax
scheme (which can be found in Torres v. Canada 2013 T.C.J.
No. 332). While the general fact patterns between the groups are
similar in broad strokes, the outcomes are not.
The Fiscal Arbitrators Client
The client is a working-class individual who is employed at a
factory. He has $125,000 of equity in his home and savings and
investments of $23,000. The taxpayer has a grade 12 education and
has never taken any tax, business or accounting classes. The
taxpayer was sold on the idea of the Fiscal Arbitrators program
during a seminar by a flashy salesman and con man who would end up
going to prison for his part in the scheme. The taxpayer bought the
story hook, line and
