I just finished examinations for discovery of a Canada Revenue Agency (CRA) auditor (I was on my best behaviour). My client had a lot of income attributed to him for tax purposes, the evidence of which is almost nil. What was most interesting is CRA attributing to my client the money to pay taxes in the total income. In other words, if CRA says that you have $50,000 in hidden income, they say that you must pay taxes on the income and they increase the amount of the income by the taxes you should have paid and readjust the tax figure upward. Or at least that's what I think they did because the auditor, to his credit, honestly stated that she could not tell me the logic of the policy or the calculator, simply that it was the policy of CRA.

Also interesting was the requirement to show a negative. Say my client does not smoke or drink but Statistics Canada says that the average Canadian spends a certain amount on tobacco and alcohol, the CRA attributes the Stats Canada amount to my client as expenditures which require the income to make the purchase. How my client can show no receipts for no cigarette purchases from no store is hard to understand, but what the hell. The same goes for life insurance. My client does not have life insurance but has an income amount attributed based on the Stats Canada numbers. You cannot show a contract that does not exist.

It was an eye-opener.

 I think I should be able to get a decent result in this particular case despite the reverse onus that is almost impossible to meet  simply becayuse the onus is almost impossible to meet.

(crosspost at The London Fog)

Taxes on the poor .... the government is getting back every dime from Bell Islanders where the unemployment rate is over 50% and participation in the labour market at all is less than 50%...

There are fewer than 3,000 residents on Bell Island, Conception Bay, but in 2004 they spent more than $5 million on gambling, alcohol and cigarettes, according to a study by the Bell Island Health and Wellness Advisory Council. Of that money, $1 million was pumped into video lottery terminals.

When the iorn ore mines shut down on Bell Island some 15,000 people moved off the island. The vast majority settled in the Cambridge area and commenced factory work. For those that have remained, work has been scarce and unemployment is now generational.

Law Of Unintended Taxequences

This is funny:

A hearty round of applause for the MapMaster.

The conservative government are acting conservative with respect to law and order, but when it comes to big government, their spending plans far outweigh their cuts. I want a tax cut for the full amount of the surplus plus more. I want the tax cut to be accross the board, for all income earners. David Janes has written an open letter:

Dear Conservative Party of Canada,

I'm indifferent to rolling back (or not) various social engineering programs of the last decades. However, if your plan is to actively make Canada a worse place to live in by having more government busybodies measuring our lives against some half-cocked socialist measuring stick, I'll be more than happy to site at home and watch Simpsons re-runs on election night. And I'm sure I'm not the only one.

Regards,
David

PS. Do you actually this believe this is a good idea, or would convince a single person to vote for you?

UPDATE: Now the conservative government is going to start taxing Income Trusts ... what is the difference between these guys and the Liberals when it comes to the economy? Sure income trust distribution is taxed in the hands of the individual unit holders and not at the corporate level (simplification) but the investors are aware of this and they have the option of getting out of the trust if they do not like the option. If the government thinks that this is unfair ....how I'm not sure, they can cut income taxes. The lowering of corporate income taxes is welcome (all tax cuts are welcome) but the excuse that it levels the playing frild is nonsense. This is an indirect subsidy to those corporations to encourage investment where there are not sound reasons for investment.

The CRTC, no longer content to decide what you can watch, has now decided how your money should be spent.

GATINEAU, QUE — The CRTC said yesterday that Canadian telephone customers have been overbilled to the tune of $652.7-million over the past few years, but the money will not be going back to them.

The federal regulator ruled instead that telecommunications companies such as Bell Canada and Telus Corp. should use most of the money -- equivalent to about $50 a customer -- to expand offerings in underserved markets, primarily rural and remote communities.

A great redistribution of income to benefit of all, except for those that actually paid the bulk of the money. A great subsidy to Bell & Telus, which they decided to collect without amny real authorization, except some sort of near authorization for the CRTC who don't think that you need that $50 anyway.

A Newfoundland Government in the Black???? I recall Brian Peckford's Government wearing black arm bands and I recall Tobin's claim of breaking evening and no one wore a black tux like Moores, however, the Williams' Government is staring a surplus in the face. Good job. Hopefully, the suplus will go to debt reduction and tax cuts. Combine that with a further decrease in spending and the economy should really start to tick.

This should be insufferable. Bono is the new age guy who believes that the answer to 3rd World Poverty does not come from individual freedoms and the corresponding rule of law, but from the propping-up and lining the pockets of Third World tyrants. Looking at some recent Nobel Peace Prize Winners, Bono's politics should all but guarntee his victory.