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Sen. Duffy once owed $20,000 to taxman, records show

OTTAWA – He says he found the Senate’s housing rules confusing. And apparently Sen. Mike Duffy has just as much trouble understanding Canada’s tax code.

Tax records show that in 1990, Duffy tried to claim more than $27,000 in deductions that were ruled ineligible. He also wrongly reported more than $78,000 in income.

The mistakes led to a $20,989 bill from the Canada Revenue Agency, according to records obtained from the Tax Court of Canada.

The records indicate a payment schedule was worked out, but the details are not included in the files.

The opposition says this should have raised questions about Duffy’s suitability for the Senate.

“Canadians believe that they should be paying their taxes and I think we should probably hold ourselves to a slightly higher standard and that is if you seek public office, if you serve as a senator, then you ensure that you are in full compliance,” said Liberal MP David McGuinty.

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On Thursday, two Conservative senators, David Tkachuk and Caroline Stewart-Olsen, both admitted they were speaking to the prime minister’s office while they were investigating Duffy. But Prime Minister Stephen Harper insists his office didn’t order them to go easy on Duffy.

“They were not directed by anyone to reach any conclusions, other than the ones they reached,” said Harper.

This week, the Conservatives promised to rein in Senate spending. Among the measures promised were greater transparency.

That would mean unelected senators would have to post online what they spend on flights, hotel, and meals – changes that the House of Commons has refused to make.

The Conservatives say changes are coming to how MPs report their expenses.

“We are trying to provide more and more detail as time goes on, and this fall we’ll provide more detail,” said the Conservative whip Gordon O’Connor.

As for Duffy, he said Thursday he welcomes a public inquiry into his Senate expenses, and vowed to cooperate with any investigation.

But he repeated his line that his actions regarding expenses do not merit criticism.

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