Appeal Court acquits B.C. software company of fraud over “zapper” program

VANCOUVER – A British Columbia company that created software so clients could under-report sales to the tax man has had its fraud conviction zapped by the province’s Court of Appeal.

Profitek software created by InfoSpec Systems Inc., helped restaurants keep track of sales, but another program, known as a “zapper,” allowed them to delete cash transactions and under-report income.

Court documents state the company sold zappers to two restaurants in Winnipeg, Man.

The company was charged with fraud over $5,000, evading income tax, and the GST, but was only convicted of fraud.

But the three-person appeal court has set aside the conviction and acquitted the company.

Justice David Frankel says the software is not illegal, there was no evidence it was installed, and as a result, he finds it hard to understand how the Crown could prove the amount of the alleged fraud.