OTTAWA, April 9 (UPI) -- Fashion mogul and Canadian citizen Peter Nygard is fighting a $16 million income tax bill because he claims he lives mostly in the Bahamas.
Canada Customs and Revenue audited him for 1995 and 1996 and claimed he spent 138 and 132 days in Canada, respectively. The agency said in its court filing Nygard still uses legal and medical services in Canada, pays into the Canada Pension Plan, attends parties and charity events, belongs to corporate tennis clubs and holds season tickets to sports games, the Ottawa Citizen reported.
Nygard claims in those years, he divided his time almost equally between Canada, the United States and the Bahamas, where he moved in 1974. His defense said Nygard doesn't own a home in Canada, and said he spent his nights in hotels, in his Toronto office or at his factory, in Winnipeg, Manitoba, while in the country.
Canada's tax laws state anyone who spends at least 183 days in the country must pay taxes. However, there have been exceptions based on the test of the nature of the person's ties to the country, the report said.
A Montreal hearing is scheduled for next week, the newspaper said.
