He followed a debunked conspiracy theory to claim a tax refund. So why did the CRA agree to a $40M payout?

He followed a debunked conspiracy theory to claim a tax refund. So why did the CRA agree to a $40M payout?

Agency scrambling to recover fraudulent payments issued to ‘sovereign’ groups

In the summer of 2023, northern Ontario ironworker Jonathon Pearce filed bogus tax returns to the Canada Revenue Agency, falsely claiming he was owed refunds going back several years totalling more than $40 million.

Internal records obtained by CBC's the fifth estate show the agency did not check the veracity of the returns and two weeks later began sending out the refunds in instalments to Pearce's bank account, including a $10-million deposit on Aug. 8, 2023.

Pearce, a longtime resident of Temiskaming Shores, 500 kilometres north of Toronto, initially declined an interview.

But when fifth estate co-host Steven D'Souza knocked on his door recently, Pearce said he was as surprised as anyone when the millions landed in his personal bank account.

"I thought [the CRA] would turn around and say, 'I'm sorry, sir, this doesn't work that way.' Next thing you know, [I was] getting a refund," he said. "Well, this is an easy way to create money."

CBC interviews man who received more than $10M in CRA refund

A fifth estate investigation has found that Pearce is one of a growing movement of so-called "sovereigns" who believe Canada as a country does not exist. Following debunked online conspiracy theories, they have successfully duped the CRA into repeatedly handing over millions in bogus refunds, taking advantage of massive gaps in the agency's fraud detection systems.

A CRA affidavit obtained by the fifth estate shows that Pearce himself contacted the agency's call centre 10 days before he got the refund. An agency investigator who later listened to the recording stated that Pearce outlined the tax "scheme" and his conspiracy beliefs.

Despite Pearce's phone call, the agency still deposited millions in his bank account.

After the agency looked into how Pearce got his refund, leaked records show it identified that between May 2023 and January 2024, nearly $300 million in bogus claims were linked to the same tax scheme as Pearce. It is unclear how much was paid out.

One auditor later wrote there was no validation process in place to "verify the legitimacy" of the requested refunds before they go out.

Heather Evans was appointed commissioner of the Canada Revenue Agency on July 13, 2026. Evans declined an interview with the fifth estate. (Canadian Revenue Agency)

In a recent statement to the fifth estate, the CRA said it is "unable" to know how much money in total the agency has paid out in bogus returns to sovereign citizen groups, also known as "tax protesters," because it does not track fraudulent returns by "personal views or intent."

The commissioner of the Canada Revenue Agency, Heather Evans, declined an interview.

The minister responsible for the agency, Finance Minister François-Philippe Champagne, told the fifth estate he was unaware of the specific allegations.

"We have a robust process to make sure of the integrity of what we do at the CRA, but we'll be looking into that," he told co-host Steven D'Souza outside a recent cabinet meeting.

An in-depth review of Pearce's Facebook profile shows he follows a debunked online conspiracy theory falsely claiming that every Canadian has a secret trust set up for them when they are born worth millions. According to the fallacy circulating online, only people with specialized knowledge are able to unlock the funds.

Former CRA investigator Shawna Roy says the theory is ludicrous and that there is no pot of money assigned at birth.

"That is not a thing," she said.

The government does "not have a trust assigned to you" when you are born, Roy told the fifth estate.

Former Canada Revenue Agency investigator Shawna Roy thinks there needs to be more checks and balances at the CRA to stop bogus refunds from being sent out. (Ousama Farag/CBC)

Pearce, however, said he believes more strongly in the debunked conspiracy theory than ever because the CRA did, in fact, give him the money.

"If the CRA gives me money, who are you to f–king question it?" Pearce told D'Souza.

"As far as I'm concerned, it was between me and CRA. If CRA had a problem, they wouldn't have given me the money."

In his return, Pearce filed T4A slips, which are typically used to report extra income. In his case, Pearce did not report any income, but erroneously stated he had paid millions in taxes since 2016 and wanted it refunded.

CRA's conduct 'enraging,' says former investigator

Roy told the fifth estate Pearce's views are not based on fact or law and that he clearly filed a bogus tax return at the expense of the public purse. She said it is concerning that three years later he appears not to have been charged with tax fraud.

"I can't comprehend it, I can't make sense of it."

Roy said if the agency had done even a little due diligence, it would have known that a factory worker requesting a $40-million refund would probably not qualify for one.

During an hour-long interview on his front porch, Pearce remained unapologetic about getting the refund, echoing anti-government and anti-tax videos he frequently reposts on his public Facebook page, including conspiracies that Western democracies are illegitimate.

The conversation took place only a few metres from Pearce's Ford F-250 truck, which he says he purchased after receiving the CRA refunds and which he then made his profile picture on Facebook.

Pearce said everyone could do what he did if they just knew how.

"If you really want to know this stuff, you really got to dig deep."

Pearce said he learned those secrets through online "sovereign" gurus who provide seminars on how not to pay tax and still get a refund from the CRA.

The CRA alleges in court documents that Teresa Wallace, left, Angela Bowolin, Bernard Yankson and Pearce are linked to bogus tax refunds. (Daniel Rofusz)

In a statement, Dave Conabree, the CRA's assistant commissioner of security, said that while he could not comment on specific cases, they were aware of schemes "promoted by individuals who reject or challenge Canada's tax system."

"The CRA takes these activities very seriously and has measures in place to detect, prevent and address fraud and non-compliance."

Still, those public court documents obtained by the fifth estate detail how the agency was aware of the ironworker's conspiracy beliefs in advance of paying the bogus refunds.

An affidavit filed in early September 2024 by the CRA in Ontario Court of Justice states that Pearce contacted the agency's call centre on July 21, 2023 — more than a week before the CRA began sending Pearce the money.

According to the affidavit, Pearce discussed "matters relating to the alleged scheme for a majority of the [July 21] call" and told the call centre "he shouldn't be paying taxes."

Yet 10 days later, on July 31, the CRA deposited the first instalment of refunds into Pearce's account for slightly less than $500,000.

Instalments stopped after bank alert

On Aug. 8, Pearce received a further $10 million. Two more scheduled instalments of $10 and $20 million for later in August were stopped after Pearce's bank alerted the agency to the unusual payments, according to internal CRA documents.

In a followup email to the fifth estate, the agency said it would not answer questions about why it began depositing millions into Pearce's account despite knowing about his conspiracy beliefs beforehand.

Despite having filed a lengthy affidavit in public court about Pearce's tax details, the media office said that the CRA itself cannot disclose individual taxpayer information and would therefore also not provide the fifth estate with recordings of Pearce's conversations with the agency's call centre.

Former CRA investigator Roy said the whole story is discouraging for honest Canadians who pay their fair share of taxes and that the $10 million-plus refund should never have been paid in the first place.

"We're paying what we're supposed to pay and then you have people who can make a complete mockery and joke out of the system and then still get away with it."

According to Carmen Celestini, a lecturer at the University of Waterloo in Waterloo, Ont., who studies conspiracy theories and disinformation, so-called sovereigns believe Canada is not a country, but rather a "corporation" — and that they can opt out.

A sovereign is "somebody who sees themselves separate from society," she told the fifth estate. "They are not part of our nation. They can create their own nation. They are not beholden to our laws."

Carmen Celestini responds to what the fifth estate uncovered

Leaked internal CRA records say that, in addition to Pearce, there were 19 social insurance numbers representing other individuals involved with the specific scheme he used.

The fifth estate has learned there are networks of "sovereign" online forums, websites and social media apps, many of which sprang up after the 2020 COVID-19 lockdowns. For a fee, some of them actively instruct followers how to become "sovereign" and claim tax refunds from the CRA.

One "sovereign" website promising tax refunds is run by Angela Albright Bowolin in Kaslo, in B.C.'s southern Interior.

In her online videos, she promises to unlock sovereign secrets to members who make a "donation." On her personal Facebook page, she said "not paying taxes" is possible, and that she is "leaving that system" and that "You can, too!"

The fifth estate has learned that one of her followers is Teresa Wallace, from Silverton in B.C.'s Interior, who the CRA now alleges received a bogus $5-million tax refund in 2024. Court records show the agency is attempting to get the money back.

In an audio recording posted on Bowolin's website, Wallace and her partner, Peter Gay, who also goes by Peter Carson, credit Bowolin and her colleague, Bernard Yankson, with helping them out.

Wallace and Gay did not respond to calls and emails from the fifth estate.

Pearce, however, credits Vancouver-based sovereign guru AJ DeSwart for helping him achieve his refund from the CRA.

DeSwart, who has their own public Telegram channel, posted voice memos in June that there are "billions and billions" available. "I knew about this shit a long time ago."

Following a Vancouver-based sovereign guru

The fifth estate has learned that after paying out tens of millions in bogus refunds, the CRA is scrambling to undo the damage — and has launched criminal investigations into at least two sovereign gurus in the Vancouver area.

DeSwart has raised concerns about those CRA investigations on Telegram.

"There are raids happening across the country with 16-plus f–king agents and a bunch of RCMP officers," DeSwart said in a Telegram voice note in June.

DeSwart declined an on-camera interview, but told the fifth estate they did not help Pearce.

Still, court records obtained by the fifth estate back up their claims about criminal investigations.

A search warrant dated May 23, 2026, authorized a CRA search of Yankson's home, alleging he and Bowolin had engaged in tax fraud by counselling "others to make false statements … on tax returns" and to "obtain refunds that they are not entitled to."

According to internal records, the CRA scrambled to recover the millions it paid Pearce, but was still searching for more than $1 million that had been spent or gone missing. (Adrian Wyld/The Canadian Press)

The fifth estate reached out to both Bowolin and Yankson.

Bowolin declined to speak to the fifth estate. In an e-mail to the CBC, Bolowin says she hasn't been charged with any offence and denies any criminal wrongdoing.

In an email, Yankson said he "categorically rejects any allegation" that associates him with fraud, unlawful activities or anti-government movements, or hostility towards government institutions, including allegations made by the CRA.

Yankson has filed a lawsuit concerning the raids in Federal Court, arguing his Charter rights were violated. No court date has been scheduled.

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'This was totally preventable': Proposed rules aim to stop CRA from paying out more bogus refunds

Back in Ontario, Pearce told the fifth estate the CRA searched his home two years ago and is garnishing his wages, but believes he will never be charged.

According to internal agency records, the CRA scrambled to recover the millions it paid Pearce, but was still searching for more than $1 million that had been spent or gone missing.

"I know I haven't done anything wrong," Pearce said.