The Canadian Taxpayers Federation presented a Prince George resident with its highest honour this week for his two-decade legal battle with the Canada Revenue Agency that ended with a "landmark ruling."
Irvin Leroux was presented with the TaxFighter Award Thursday. It's given out to Canadians "who have made a significant contribution to the cause of taxpayer emancipation."
In 1996, the CRA audited Leroux's RV park near Valemount and determined he owed $800,000 in taxes and penalties. He appealed, but the CRA seized and sold his business before eventually admitting Leroux didn't owe them a penny.
When Leroux sued the CRA for damages, the court found the CRA owes all taxpayers a "duty of care" meaning if the agency abuses taxpayers, it can be held liable for damages.
But while the court found CRA breached its duty of care in regard to Leroux, it did not award damages, concluding Leroux failed to show a link between the negligence and the loss of his business and home.
In later proceedings, the CRA tried to overturn the duty of care finding, but with financial backing from the CTF, Leroux put up a fight and the agency ultimately dropped its appeal.
In turn, Leroux dropped his appeal of the decision against awarding him damages. Instead, he paid the CRA a nominal $10 for its court costs under an agreement accepted by the B.C. Court of Appeal.
However, "duty of care has become an important legal precedent and is now being used in many court battles with the CRA across the country," according to the CTF.
"Irvin Leroux is a hero. Many Canadians would have given up, but Irv kept fighting and ended up winning a victory for all taxpayers," said Scott Hennig, the CTF's vice president of communications. "There is no more worthy recipient of our TaxFighter Award than Irvin Leroux."
Leroux said he's humbled to receive an award that has also been presented to three MPs who turned down a lucrative pension plan, Ralph Klein, Jim Dinning, Kevin Page, Dave Rutherford, Lorne Gunter and Tom Brodbeck in the past.
"When the CRA and department of justice put up a wall to prevent taxpayers from holding the CRA accountable, duty of care is the tool that can tear that wall down," said Leroux.
"Duty of care enables taxpayers to hold CRA employees accountable for their actions. No longer will this agency be allowed to treat taxpayers in a negligent way."
