Canadian Tax Court Rules FLDS Community Does Not Come Under Provision For Sharing of Tax Liability

In a 92-page opinion in Blackmore v. The Queen, (Tax Ct. Canada, Aug. 21, 2013), the Tax Court of Canada ruled that the polygamous FLDS community of Bountiful, British Columbia does not fall under Sec. 143 of Canada's Income Tax Act which allows communal religious organizations such as the Hutterites to elect to have community income taxed to individual members of the community.  The ruling means that other Bountiful residents will not be liable for the taxes and penalties flowing from the $1.8 million understatement of income by FLDS leader Winston Blackmore. (In a related ruling, the court detailed reasons for allowing Dr. John Walsh to testify as an expert witness.) The Vancouver Sun reported yesterday, however, that testimony at the trial suggests Blackmore may still pass on the tax liability to his followers through requiring additional tithing or making a "famine call" on them to live for three months on their stored food so they can hand over their grocery money to him.