Gruben, Maddin, Hansen called to court
Tax charges laid against ex-IRC officials

by Ian Elliot
Northern News Services

INUVIK (Mar 13/98) - Three former officials of the Inuvialuit Regional Corporation have been charged with tax evasion.

Revenue Canada investigators have laid a total of eight charges of failing to report income, understating income and making false statements on tax forms against Roger Gruben, the former chairman of the IRC, Preston J. Maddin, the former vice-president of finance and Knute Hansen, a former director of the corporation which oversees the implementation of the Inuvialuit Final Agreement.

The charges were laid before a justice of the peace in Inuvik on Monday following a lengthy investigation. The three will appear in court here to answer the charges on April 27.

The charges relate to income they are alleged to have received from a now-scrapped bonus plan between 1993 and 1995, under which Revenue Canada claims highly-placed individuals within the IRC rewarded themselves with cash bonuses.

Revenue Canada investigators who were in town this week declined to comment on the charges, as is that department's policy.

Court documents show that Gruben, 45, of Tuktoyaktuk is charged with evading taxes of $71,000 by failing to report income of $299,000 in 1993, 1994 and 1995; under-reported his income by $24,000 in 1993; and understated his income by $158,000 in 1994.

Maddin, 40, who now lives in Calgary, faces four charges. Revenue Canada says he evaded taxes of $69,000 by failing to report income of $221,000 in 1993, 1994 and 1995; understated his income by $56,000 in 1993; understated his income by $110,000 in 1994 and understated his income by $55,000 in 1995.

Hansen, 46, faces a single charge of evading taxes of $46,000 by failing to report income of $298,000 in 1994.