Fines and House Arrest for Taxpayer Caught in Paradigm Scheme

Carl Gustafson, a professional engineer (P.Eng.) and a director of Norall Group Contracting Inc., was fined late in October in the Ontario Court of Justice in Thunder Bay in the amount of $84,417 for failing to report $459,174 in income. 

He was also given a nine month conditional sentence that included five months of house arrest and four months of curfew for tax evasion. The fine represents 100% of the total federal income tax evaded. Gustafson was given two years to pay the fine.

Gustafson followed a tax evasion scheme promoted by Russell Porisky through the Paradigm Education Group (Paradigm). The unreported income was paid to Gustafson by Norall Group Contracting Inc. for services rendered for the years 2005 to 2009 inclusive.

Gustafson was counselled to file false income tax returns by a member of the Paradigm Education Group. 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.