Burnaby dentist ordered to pay back taxes he tried to avoid

They say nothing is certain in life except death and taxes.

A Burnaby dentist tried to cheat on him and got trapped in the process.

Good.

In a July 6 decision from the British Columbia Provincial Court, the Burnaby dentist Pierre Balogh was ordered to reimburse $ 578,885 to the Canada Revenue Agency. This represents the total amount the dentist has allegedly defrauded the CRA since 2005, plus interest and penalties, according to a press release from the tax agency.

Balogh was initially convicted of six counts on August 9, 2016, one count of misrepresenting and five counts of failure to report taxable income.

An investigation by the CRA found that in 2005, Balogh stopped paying himself a salary. Instead, he billed his dental practice in Burnaby as a contractor and then wrote himself checks.

It is said that the dentist adheres to the “free man on earth” or “natural person” argument.

“The crux of the argument is that individuals are governed only by free will, and unless they enter into a binding contract with the state – which they have not done – then they cannot be governed by state authority over them, “Vancouver lawyer Kyla Lee wrote in April after a Kitsilano restaurant sought to evade public health orders.

The arguments, says Lee, were raised to fight everything from taxes or tickets; in the end, the courts unilaterally rejected the plausibility of these arguments.

And thank goodness.

Look, we all hate paying taxes. Well, most of us. I understand the need to pay taxes because they pay for essential services like universal health care, road maintenance and, well, the list goes on and on.

It’s ridiculous and offensive to see people who can easily afford to pay taxes, like dentists, trying to cheat the system because they think the laws don’t apply to them. I bet this dentist gets all kinds of services that are paid for by our taxes. And yet he tries to avoid them.

In Balogh’s case, it was all about taxes. Despite warnings from his accountant that the “natural person” argument would not hold up, Balogh continued to underreport his income in 2005 and 2006. Between 2007 and 2009, he did not file any tax returns.

In total, the dentist did not report $ 2.177 million in taxable income. What makes it even worse, in my mind, is that he was even warned by his own accountant not to do it and he did it anyway. It is arrogance.

The CRA says there were 26 convictions of tax protesters between April 1, 2016 and March 31, 2021. This resulted in fines of $ 2.75 million and 53 years in prison, according to the tax agency.

  • With additional reporting from Stefan Labbe, Glacier Media

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About Robert Young

Robert Young

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