HOW THE TAXMAN STOLE CHRISTMAS
2000, 2001, 2002, 2003, 2004,
2005, 2006, 2007 , 200?
By Victor Drummond (c)
December 24 2007
Just imagine the years of living under a cloud of
deferred, unjustified, unfair, taxable benefit taxes
and the wonderful effect that would be realized
if those taxes were removed.
For starters read the prior posting:- "A FATHER'S LETTER TO THE AUTHORITIES"
Do what you can to bring this punative tax to an end -- and give
thousands of honest hard working Canadians the best Happy New Year ever.
Notify your Member of Parliament you want the defective taxable benefit
legislation corrected and all Canadians unfairly taxed under the existing
taxable benefit laws to be fairly treated.
Otherwise vote for me as a write-in candidate -- i.e. a protest vote.
Victor Drummond (c)
Monday, December 24, 2007
Saturday, December 15, 2007
A FATHERS LETTER...
A FATHER’S LETTER TO THE AUTHORITIES
A GENUINE letter of appeal for Justice and Fairness
by a very concerned Father
To the Government of Canada – and the Canadian Public.
Posted with permission -- by Victor Drummond ©
December 16th 2007
There has been a lingering, insidious, bit of Income tax legislation that has resulted in an outrageous series of rationalizations leading up to the abusive taxation of many honest, hard working Canadians.
This issue has received some publicity – mainly since a few victims of this diabolical scheme were granted a tax remission order as described in the November 14th 2007 issue of the Canada Gazette.
Many victims of the flawed taxable benefit legislation have appealed -- on the basis of their unjustified distress and objections -- to their representative Members of Parliament and to the Prime Ministers -- past and present – mainly to little or no avail.
To his credit -- Gary Lunn, Conservative Member of Parliament for the riding of Saanich and Gulf Islands British Columbia – fought for his victimized constituents – and succeeded in getting a tax remission order issued.
Gary’s efforts unfortunately produced a double edged sword which cut to give a few victims a deal that was a move toward “Fair Taxation” but also cut to produce an ever greater unfairness for thousands of other victims who where, and are still, left out of the deal.
If after reading the Fathers Letter, below, you should think:- “Oh Well -- he is likely the only parent with a child in this kind of situation.” Then read a previous posting titled:- “Canada Remembers – and so do I.” posted for Veterans remembrance day 2007.
Now – “A FATHERS LETTER..”
============================
Gary & Lorraine Hawe
551 Cedar Crescent
Cobble Hill, B.C.
V0R 1L1
Tuesday, December 11, 2007
The Honorable Gordon O’Connor, Minister of National Revenue
157 East Block
Ottawa, ON K1A 0A6
Dear Minister O’Connor:
One of the greatest things about our country, Canada, is that Canadians see each individual as important; a citizens life is not to be forfeited for political expediency.
My son Kevin and his young family are being sacrificed, caught in the ESO/ESPP tax debacle.
Many others, including those from the JDS group have preceded him and their individual tragedies and sacrifices are well known.
You, Mr. Minister must force a change to the obscene tax legislation relative to ESO and ESPP programs.
This remedy is vitally important to all Canadians who stumbled into this tax mess. In addition to doing the right thing this would be a display of conscience, strength, control, fair play, justice, compassion, responsibility, honor and truthfulness, all the things the individual Canadian is expected to be and justify our confidence of you in positions of privilege and power.
Kevin has written you a long letter with which describes in detail his situation. I urge you to read it. Hundreds of letters and emails have preceded this document.
The letter is long, why not? Your letter would be long as well if you, your family and future were being sacrificed for political expediency which someone like yourself Mr. Minister has the responsibility and power to change.
My son and his family are precious and important to me. Apply fully what the Honorable Gary Lunn said last December, “It is not in the interest in the Government to tax people on money they never saw”.
Do not bring tragedy, misery and ruin into our family by forfeiting us to political expediency.
I look forward to your positive response.
Yours truly
Gary L. Hawe
Telephone 250-743-9120
E-Mail garyhawe @shaw.ca lmhawe@shaw.ca
============================
Feel free to call Gary Hawe if you doubt the validity of his letter above.
Although our elected representatives should be the one’s to rectify this punitive, unjustified tax legislation it appears – so far – the matter will not be resolved without positive action by the Canadian Voter.
In order to bring about truly “Fair and Just” Income Taxation you the voter will need to act in unison to demand this diabolical Taxable Benefit legislation be amended to:-
(1) Exclude corporate shares from the:- “Taxable Benefit” classification.
And
(2) Allow those already taxed on fictitious “Earned Income” to re-submit their Income Tax Returns for every year they were charged taxes on money they never received. Those share transactions must be treated as “Capital Gains/Losses” if any form of “Fair Taxation” is to be realized.
If no Federal Political Party commits to correcting this outrageous tax situation then make your vote a protest vote.
VOTE FOR VICTOR DRUMMOND – as a Write-in Candidate.
See you at the voting polls – next federal election.
Victor Drummond ©
Wednesday, December 12, 2007
Why didn't someone....
OH MY – IF I HAD ONLY KNOWN
A statement of who knew what when
And what was done about it.
By Victor Drummond ©
December 2007
Everyone who has taken the time to visit this blog page – and read an article or two – will be aware there is a serious problem with the Canadian Income Tax Act, Taxable Benefit Legislation.
Numerous Honest, Hard-working, Conscientious Canadian Taxpayers have been levied exorbitant
Taxes on huge, fictitious, “Earned” Incomes . Money that was never seen, was not “Earned” and never was, or ever will be “Income”.
Any reasonable person would assume that a matter -- as outrageous as this -- would be corrected immediately as soon as someone in authority became aware of the matter.
Well – so long as no one is being hurt – I suppose the corrective action could wait for a month or so – or a year or two – or possibly just left as is. That is as long as no one is being hurt.
If anyone, however, had to borrow money, or re-mortgage their home, or divorce their spouse, or live with a huge tax deferment unto death – well that is another story. Then there is a real requirement to correct the matter As Soon As Possible. That is ASAP. And that is the reality of this scourge.
The problem arrived on my doorstep when I found out my son has been financially decimated by this very flawed legislation. When I looked into the matter I immediately found a young couple who had been forced to mortgage their home AND apply for Tax Deferment via the form T1212.
It took no time at all to find a dozen or so other victims in similar tax situations. My first young couple had written to the Honorable Paul Martin -- Prime Minister of the time – appealing to him for relief from their unjust financial dilemma. They even offered to give all their ESPP acquired shares to the government in exchange for tax relief. No Deal said Paul Martin – in so many words.
Paul Martin’s response was to forward their appeal to the Finance Minister the Honorable Ralph Goodale who in turn acknowledged the letter from the young couple and informed then the issue was under active consideration.
Nothing ever came of that message exchange and the couple are still faced with a heavy deferred tax and are struggling to pay off the mortgage on their home.
While still in office as Prime Minister the Honorable Paul Martin happened to be in the Vancouver Airport at the same time as another seriously overtaxed victim e.g. Mr. Kevin Hawe.
Mr. Hawe had the opportunity to speak with Mr. Martin and made a verbal appeal to him for relief from the unwarranted tax burden that Mr. Hawe was now faced with.
Paul appeared to listen to Kevin’s words and made a verbal commitment to look into the matter and see what could be done to rectify the problem. Kevin is still waiting for something/anything to be done.
In January 2006 when the minority conservative government came into power it gave reason for the taxable benefit victims to have hope that their plight may be recognized and corrective action taken.
The Honorable Gary Lunn, MP for the riding of Saanich Gulf Islands, in British Columbia, recognized the injustice of some JDS Uniphase Employees who were also victims of the insidious taxable benefit legislation.
Gary went to work to find some form of justice for these victims in his riding and by November 2006 had succeeded in getting a Tax Remission order approved – that gave some 40+ former JDS Employees some rebate of their taxable benefit taxes.
Until November 14th 2007, when the Canada Gazette published -- a few meager details – the actual tax relief provide by the remission order was a deep dark secret.
There was no lack of trying to get confirmation that a deal existed. There were hundreds of letters, and e-mails, sent to every imaginable authority, from sitting MP’s to Journalists who had published articles on the announcement by Gary Lunn.
Even now it is not clear whether or not those who benefited from this remission order actually received a “Fair Deal”.
From some numbers -- appearing in an article in the December 7th 2007, Victoria Times Colonist Newspaper, it seems there are various degrees of “Fairness” given to different remission order beneficiaries.
None of the deals described look truly fair on the surface. From the data revealed -- so far -- it appears no one was refunded the total amount of taxes levied against them by reason of money they never received. Is this another case of take it or leave it half-way fixes?
The deal fairness issue aside – there is a larger more serious aspect to this tax remission order.
How about equal treatment under the law – as provided by the Canadian Charter of Rights and Freedoms Article 15(1), and also under the more recent Taxpayers Rights Charter Article 8 ?
On the basis of charter violations alone – an Honest, Conscientious, Creditable Politician would raise proper hell until some effective form of corrective action was in place.
Nothing of substance has been initiated by any Canadian political person(s) and/or political parties so far.
There has been a lot of rhetoric on the issue of “Fair Taxation” by the conservative party from the time they were campaigning for election in 2005 right up to the present time.
So far all they have done is to proclaim Fair Taxation for all Canadians and putting a series of patch-up brochures, bulletins, Information circulars etc. ad-infinitum.
The implied overall content of these publications and public speeches is that by utilizing the avenues open to -- any and all -- dissatisfied Canadian taxpayers that Fair Taxation may be achieved.
This is a farce – because the defective legislation is still in place – and still operative.
The flawed taxable benefit legislation and rulings still deny the RIGHT of every Canadian Taxpayer to equal and fair taxation.
It still leaves hard working, honest Canadian Taxpayers to beg for their own money – and it still allows the government the ability to deny victims of unjustified taxation any form of compensation.
Just so you all know who -- in Canadian Political Parties – have been made aware, (repeatedly) of this abusive, punitive and unjust tax legislation here is a list that have been brought to my attention.
Each person named should be credited with the action they took and/or commitment they made to initiate proper corrective action.
The Honorable Stephan Harper – Canada’s Prime Minister.
Notification:- Several dozen E-mails since elected PM.
Messages acknowledge via cookie cutter replies.
Action taken:- Patchwork Appeal Avenues implemented, Taxpayers Ombudsman,
Taxpayers Charter.
Grand speeches on fair taxation, e.g. Toronto Canadian Club.
Results:- Fair and equal taxation – not yet in operation.
This issue is only aggravated by the JDS BC Tax Remission Order.
============================================
The Honorable Jim Flaherty – Canada’s Minister of Finance.
Notification:- Hundreds of letters and E-mails since being elected and appointed.
Action taken:- Some messages acknowledged – many just ignored – issue passed back and forth with
other minister(s) e.g. Carol Skelton Nation Revenue Minister.
Results:- Fair and equal taxation – not yet in operation.
This issue is only aggravated by the JDS BC Tax Remission Order.
============================================
The Honorable Gordon O’Connor, Minister of National Revenue
formerly, The Honorable Carol Skelton, Minister of National Revenue.
Notification:- Hundreds of Letters and E-mails. A dozen or so from Kevin Hawe and couple from
me.
Action taken:- (CS) Endorsed the JDS Tax Remission Order, forwarded letters of Appeal to the
Minister of National Finance.
Results:- Fair and equal taxation – not yet in operation.
This issue is only aggravated by the JDS BC Tax Remission Order
===========================================
Kevin Hawe reports he has sent no less than 53 messages of appeal to every conservative MP from British Columbia to Ontario. Results:- Nil.
===========================================
The Honorable Gary Lunn, MP, Riding of Saanich Gulf Islands, British Columbia.
Notification:- Hundreds of Letters and E-mails. Many never acknowledged.
Action taken:- Initiated a Tax Remission Order for a few of his constituents.
Results:- Fair and equal taxation – not yet in operation.
This issue is only aggravated by the JDS BC Tax Remission Order
============================================
The Honorable Stephen Dion , Leader of the Opposition, Liberal Party Leader.
Notification:- No less than 10 messages of appeal for assistance from Kevin Hawe
Including one request, 17 May 07, to meet with Stephen and/or Keith Martin while
they were visiting Victoria B.C.
Given buyerbeware blog page url.
Action taken:- Not even an acknowledgement of Kevin’s messages.
Results:- Absolutely NONE. Apparently Fair Taxation is not on the Liberal Agenda.
=============================================
The Honorable Michael Ignatief, Deputy Leader of the Liberal Party.
Notification:- Two messages from Kevin Hawe. First 29th Nov. 07
Second 7, Dec, 07. including URL to 7th Dec. 07
Ottawa Citizen Newspaper – “Tories forgive…”
Action taken:- No acknowledgement to date – but time has been relatively short.
Will reserve judgment on this politician’s action to end of 2007
Results:- Absolutely NONE. Apparently Fair Taxation is not on the Liberal Agenda.
==============================================
The Honorable John McCallum, Liberal Finance Critic
Notification:- At least 5 direct messages, plus CC’d on all messages to Stephen Dion
From Kevin Hawe as early as May 17th 2007.
Last message 7th Dec. 07 with URL to Ottawa Citizen Newspaper
banner headline.
Action taken:- Not even an acknowledgement of Kevin’s messages.
Results:- NONE. Apparently Fair Taxation is not on the Liberal Agenda.
=============================================
The Honorable Judy Scro, Liberal Revenue Critic.
Notification:- 1 or 2 direct messages and CC’d on all messages sent to Stephen Dion.
Action taken:- Not even an acknowledgement of Kevin’s messages.
Results:- NONE. Apparently Fair Taxation is not on the Liberal Agenda.
==============================================
The Honorable Jack Layton, Leader of the Federal New Democratic Party.
Notification:- Not less than 11 direct messages in current year.
Last message 7th Dec. 07 with URL to Ottawa Citizen Newspaper
banner headline. Given url to Canada Gazette published 14 Nov. 2007.
Also given the url of this blog page.
Action taken:- None to date
Results:- NONE. Apparently Fair Taxation is not on the NDP Agenda.
==============================================
The Following Federal New Democratic Party MP’s have been CC’d in messages sent to The Honorable Jack Layton.
The Honorable Jean Crowder, MP, NDP Critic Aboriginal Peoples Affairs.
The Honorable Denise Savoie, MP, NDP, Victoria British Columbia.
The Honorable Thomas Mulclair, NDP, MP for Outremont Quebec.
Action taken:- None to date
Results:- NONE. Apparently Fair Taxation is not on the NDP Agenda.
========================================
There has been no record -- come to my attention – of any other persons in the federal political arena who have been sent messages -- of appeal for fair taxation – either directly or via CC’s.
However in light of the recent News media, TV and Newspapers, there is no room to doubt that all federal politicians are well aware there is unfairness in the Canadian Income Tax Legislation as it presently stands.
No Leader of a Canadian Political Party can hide behind the excuse:-
“Oh My – If Only I had Known” – I would have implemented immediate relief for those victimized and taken prompt action to correct the defective legislation that produced this travesty in the first place.
YEAH RIGHT
Now you know – Either acknowledge and state a position on this issue or:-
When the time comes for the Ostriches to appeal to us for our vote – then we will say –
OH My -- If Only you had known.
We intend to reward performance – not hollow promises and/or patchwork fixes.
NOT ONE SINGLE CANADIAN WILL HAVE TO BEG FOR JUSTICE
If the proper corrective action is taken.
Vote for Victor Drummond – if you agree that our present politicians are not worthy to be, or become, our government.
See you at the Federal election voting polls.
Victor Drummond ©
A statement of who knew what when
And what was done about it.
By Victor Drummond ©
December 2007
Everyone who has taken the time to visit this blog page – and read an article or two – will be aware there is a serious problem with the Canadian Income Tax Act, Taxable Benefit Legislation.
Numerous Honest, Hard-working, Conscientious Canadian Taxpayers have been levied exorbitant
Taxes on huge, fictitious, “Earned” Incomes . Money that was never seen, was not “Earned” and never was, or ever will be “Income”.
Any reasonable person would assume that a matter -- as outrageous as this -- would be corrected immediately as soon as someone in authority became aware of the matter.
Well – so long as no one is being hurt – I suppose the corrective action could wait for a month or so – or a year or two – or possibly just left as is. That is as long as no one is being hurt.
If anyone, however, had to borrow money, or re-mortgage their home, or divorce their spouse, or live with a huge tax deferment unto death – well that is another story. Then there is a real requirement to correct the matter As Soon As Possible. That is ASAP. And that is the reality of this scourge.
The problem arrived on my doorstep when I found out my son has been financially decimated by this very flawed legislation. When I looked into the matter I immediately found a young couple who had been forced to mortgage their home AND apply for Tax Deferment via the form T1212.
It took no time at all to find a dozen or so other victims in similar tax situations. My first young couple had written to the Honorable Paul Martin -- Prime Minister of the time – appealing to him for relief from their unjust financial dilemma. They even offered to give all their ESPP acquired shares to the government in exchange for tax relief. No Deal said Paul Martin – in so many words.
Paul Martin’s response was to forward their appeal to the Finance Minister the Honorable Ralph Goodale who in turn acknowledged the letter from the young couple and informed then the issue was under active consideration.
Nothing ever came of that message exchange and the couple are still faced with a heavy deferred tax and are struggling to pay off the mortgage on their home.
While still in office as Prime Minister the Honorable Paul Martin happened to be in the Vancouver Airport at the same time as another seriously overtaxed victim e.g. Mr. Kevin Hawe.
Mr. Hawe had the opportunity to speak with Mr. Martin and made a verbal appeal to him for relief from the unwarranted tax burden that Mr. Hawe was now faced with.
Paul appeared to listen to Kevin’s words and made a verbal commitment to look into the matter and see what could be done to rectify the problem. Kevin is still waiting for something/anything to be done.
In January 2006 when the minority conservative government came into power it gave reason for the taxable benefit victims to have hope that their plight may be recognized and corrective action taken.
The Honorable Gary Lunn, MP for the riding of Saanich Gulf Islands, in British Columbia, recognized the injustice of some JDS Uniphase Employees who were also victims of the insidious taxable benefit legislation.
Gary went to work to find some form of justice for these victims in his riding and by November 2006 had succeeded in getting a Tax Remission order approved – that gave some 40+ former JDS Employees some rebate of their taxable benefit taxes.
Until November 14th 2007, when the Canada Gazette published -- a few meager details – the actual tax relief provide by the remission order was a deep dark secret.
There was no lack of trying to get confirmation that a deal existed. There were hundreds of letters, and e-mails, sent to every imaginable authority, from sitting MP’s to Journalists who had published articles on the announcement by Gary Lunn.
Even now it is not clear whether or not those who benefited from this remission order actually received a “Fair Deal”.
From some numbers -- appearing in an article in the December 7th 2007, Victoria Times Colonist Newspaper, it seems there are various degrees of “Fairness” given to different remission order beneficiaries.
None of the deals described look truly fair on the surface. From the data revealed -- so far -- it appears no one was refunded the total amount of taxes levied against them by reason of money they never received. Is this another case of take it or leave it half-way fixes?
The deal fairness issue aside – there is a larger more serious aspect to this tax remission order.
How about equal treatment under the law – as provided by the Canadian Charter of Rights and Freedoms Article 15(1), and also under the more recent Taxpayers Rights Charter Article 8 ?
On the basis of charter violations alone – an Honest, Conscientious, Creditable Politician would raise proper hell until some effective form of corrective action was in place.
Nothing of substance has been initiated by any Canadian political person(s) and/or political parties so far.
There has been a lot of rhetoric on the issue of “Fair Taxation” by the conservative party from the time they were campaigning for election in 2005 right up to the present time.
So far all they have done is to proclaim Fair Taxation for all Canadians and putting a series of patch-up brochures, bulletins, Information circulars etc. ad-infinitum.
The implied overall content of these publications and public speeches is that by utilizing the avenues open to -- any and all -- dissatisfied Canadian taxpayers that Fair Taxation may be achieved.
This is a farce – because the defective legislation is still in place – and still operative.
The flawed taxable benefit legislation and rulings still deny the RIGHT of every Canadian Taxpayer to equal and fair taxation.
It still leaves hard working, honest Canadian Taxpayers to beg for their own money – and it still allows the government the ability to deny victims of unjustified taxation any form of compensation.
Just so you all know who -- in Canadian Political Parties – have been made aware, (repeatedly) of this abusive, punitive and unjust tax legislation here is a list that have been brought to my attention.
Each person named should be credited with the action they took and/or commitment they made to initiate proper corrective action.
The Honorable Stephan Harper – Canada’s Prime Minister.
Notification:- Several dozen E-mails since elected PM.
Messages acknowledge via cookie cutter replies.
Action taken:- Patchwork Appeal Avenues implemented, Taxpayers Ombudsman,
Taxpayers Charter.
Grand speeches on fair taxation, e.g. Toronto Canadian Club.
Results:- Fair and equal taxation – not yet in operation.
This issue is only aggravated by the JDS BC Tax Remission Order.
============================================
The Honorable Jim Flaherty – Canada’s Minister of Finance.
Notification:- Hundreds of letters and E-mails since being elected and appointed.
Action taken:- Some messages acknowledged – many just ignored – issue passed back and forth with
other minister(s) e.g. Carol Skelton Nation Revenue Minister.
Results:- Fair and equal taxation – not yet in operation.
This issue is only aggravated by the JDS BC Tax Remission Order.
============================================
The Honorable Gordon O’Connor, Minister of National Revenue
formerly, The Honorable Carol Skelton, Minister of National Revenue.
Notification:- Hundreds of Letters and E-mails. A dozen or so from Kevin Hawe and couple from
me.
Action taken:- (CS) Endorsed the JDS Tax Remission Order, forwarded letters of Appeal to the
Minister of National Finance.
Results:- Fair and equal taxation – not yet in operation.
This issue is only aggravated by the JDS BC Tax Remission Order
===========================================
Kevin Hawe reports he has sent no less than 53 messages of appeal to every conservative MP from British Columbia to Ontario. Results:- Nil.
===========================================
The Honorable Gary Lunn, MP, Riding of Saanich Gulf Islands, British Columbia.
Notification:- Hundreds of Letters and E-mails. Many never acknowledged.
Action taken:- Initiated a Tax Remission Order for a few of his constituents.
Results:- Fair and equal taxation – not yet in operation.
This issue is only aggravated by the JDS BC Tax Remission Order
============================================
The Honorable Stephen Dion , Leader of the Opposition, Liberal Party Leader.
Notification:- No less than 10 messages of appeal for assistance from Kevin Hawe
Including one request, 17 May 07, to meet with Stephen and/or Keith Martin while
they were visiting Victoria B.C.
Given buyerbeware blog page url.
Action taken:- Not even an acknowledgement of Kevin’s messages.
Results:- Absolutely NONE. Apparently Fair Taxation is not on the Liberal Agenda.
=============================================
The Honorable Michael Ignatief, Deputy Leader of the Liberal Party.
Notification:- Two messages from Kevin Hawe. First 29th Nov. 07
Second 7, Dec, 07. including URL to 7th Dec. 07
Ottawa Citizen Newspaper – “Tories forgive…”
Action taken:- No acknowledgement to date – but time has been relatively short.
Will reserve judgment on this politician’s action to end of 2007
Results:- Absolutely NONE. Apparently Fair Taxation is not on the Liberal Agenda.
==============================================
The Honorable John McCallum, Liberal Finance Critic
Notification:- At least 5 direct messages, plus CC’d on all messages to Stephen Dion
From Kevin Hawe as early as May 17th 2007.
Last message 7th Dec. 07 with URL to Ottawa Citizen Newspaper
banner headline.
Action taken:- Not even an acknowledgement of Kevin’s messages.
Results:- NONE. Apparently Fair Taxation is not on the Liberal Agenda.
=============================================
The Honorable Judy Scro, Liberal Revenue Critic.
Notification:- 1 or 2 direct messages and CC’d on all messages sent to Stephen Dion.
Action taken:- Not even an acknowledgement of Kevin’s messages.
Results:- NONE. Apparently Fair Taxation is not on the Liberal Agenda.
==============================================
The Honorable Jack Layton, Leader of the Federal New Democratic Party.
Notification:- Not less than 11 direct messages in current year.
Last message 7th Dec. 07 with URL to Ottawa Citizen Newspaper
banner headline. Given url to Canada Gazette published 14 Nov. 2007.
Also given the url of this blog page.
Action taken:- None to date
Results:- NONE. Apparently Fair Taxation is not on the NDP Agenda.
==============================================
The Following Federal New Democratic Party MP’s have been CC’d in messages sent to The Honorable Jack Layton.
The Honorable Jean Crowder, MP, NDP Critic Aboriginal Peoples Affairs.
The Honorable Denise Savoie, MP, NDP, Victoria British Columbia.
The Honorable Thomas Mulclair, NDP, MP for Outremont Quebec.
Action taken:- None to date
Results:- NONE. Apparently Fair Taxation is not on the NDP Agenda.
========================================
There has been no record -- come to my attention – of any other persons in the federal political arena who have been sent messages -- of appeal for fair taxation – either directly or via CC’s.
However in light of the recent News media, TV and Newspapers, there is no room to doubt that all federal politicians are well aware there is unfairness in the Canadian Income Tax Legislation as it presently stands.
No Leader of a Canadian Political Party can hide behind the excuse:-
“Oh My – If Only I had Known” – I would have implemented immediate relief for those victimized and taken prompt action to correct the defective legislation that produced this travesty in the first place.
YEAH RIGHT
Now you know – Either acknowledge and state a position on this issue or:-
When the time comes for the Ostriches to appeal to us for our vote – then we will say –
OH My -- If Only you had known.
We intend to reward performance – not hollow promises and/or patchwork fixes.
NOT ONE SINGLE CANADIAN WILL HAVE TO BEG FOR JUSTICE
If the proper corrective action is taken.
Vote for Victor Drummond – if you agree that our present politicians are not worthy to be, or become, our government.
See you at the Federal election voting polls.
Victor Drummond ©
Monday, December 10, 2007
Updated Copyright Notice
COPYRIGHT NOTICE
Issued September 7, 2007
Updated December 10, 2007
By Victor Drummond ©
Be advised hereby that as of this date --all bloggers, publishers of news media and/or business papers and/or magazines, including Readers Digest, are granted free copyright privileges to any article I post to this blog page, (buyerbeware—caveatemptor), both past and future.
As I am the only person with administrative access to this blog page a copy of this notice is the equivalent of a signed authorization.
While those who utilize this material may either support the intent of these articles – or voice opposing views I -- and those who have been victimized by our defective “Taxable Benefits” laws would greatly appreciate your support.
Victor Drummond ©
Issued September 7, 2007
Updated December 10, 2007
By Victor Drummond ©
Be advised hereby that as of this date --all bloggers, publishers of news media and/or business papers and/or magazines, including Readers Digest, are granted free copyright privileges to any article I post to this blog page, (buyerbeware—caveatemptor), both past and future.
As I am the only person with administrative access to this blog page a copy of this notice is the equivalent of a signed authorization.
While those who utilize this material may either support the intent of these articles – or voice opposing views I -- and those who have been victimized by our defective “Taxable Benefits” laws would greatly appreciate your support.
Victor Drummond ©
Sunday, December 9, 2007
A Protest Vote....
VOTE FOR VICTOR DRUMMOND
Canada’s first all riding candidate for any and all.
DECLARATION
I hereby declare my candidacy for any and all offices, positions and/or ministries that become the subject of a public election – present and or future.—in any and all provinces of Canada, any and all ridings, wards, and for any and all, political parties.
MY PLATFORM
If I receive a majority of the popular vote -- in any election -- then I promise to work tirelessly to bring true Justice, honesty, integrity, credibility, fairness and equality to my constituents.
QUALIFICATIONS:- None. I do not really exist – I am a fictitious identity.
If, however, the government can levy real, and huge, taxes on a non-existent “Earned Income – then you can use your real vote to vote for a non-existent candidate such as myself.
WHY SHOULD I DO THAT?
Because every Canadian’s RIGHT to just, fair and equal taxation has been destroyed by defective taxable benefit legislation. See blog:- www.buyerbeware--caveateemptor.blogspot.com
for all kinds of articles describing the problem
By using my fictitious identity -- as a write-in candidate – on every ballot you are entitled to -- you are registering a protest that tells the Canadian Politicians precisely what you are protesting – and why.
HAS ANYONE DONE ANYTHING TO FIX THIS PROBLEM?
Yes. But the fixes provided so far – by the current Conservative government -- are mostly cosmetic and do absolutely nothing to restore every Canadians RIGHT to Fair taxation.
See you at the voting polls for the next Federal Election.
Victor Drummond ©
Canada’s first all riding candidate for any and all.
DECLARATION
I hereby declare my candidacy for any and all offices, positions and/or ministries that become the subject of a public election – present and or future.—in any and all provinces of Canada, any and all ridings, wards, and for any and all, political parties.
MY PLATFORM
If I receive a majority of the popular vote -- in any election -- then I promise to work tirelessly to bring true Justice, honesty, integrity, credibility, fairness and equality to my constituents.
QUALIFICATIONS:- None. I do not really exist – I am a fictitious identity.
If, however, the government can levy real, and huge, taxes on a non-existent “Earned Income – then you can use your real vote to vote for a non-existent candidate such as myself.
WHY SHOULD I DO THAT?
Because every Canadian’s RIGHT to just, fair and equal taxation has been destroyed by defective taxable benefit legislation. See blog:- www.buyerbeware--caveateemptor.blogspot.com
for all kinds of articles describing the problem
By using my fictitious identity -- as a write-in candidate – on every ballot you are entitled to -- you are registering a protest that tells the Canadian Politicians precisely what you are protesting – and why.
HAS ANYONE DONE ANYTHING TO FIX THIS PROBLEM?
Yes. But the fixes provided so far – by the current Conservative government -- are mostly cosmetic and do absolutely nothing to restore every Canadians RIGHT to Fair taxation.
See you at the voting polls for the next Federal Election.
Victor Drummond ©
Saturday, December 8, 2007
Horrors -- Fair Taxation..
Taxing Canadians Fairly – A DANGEROUS PRECIDENT
A Commentary on recent Newspaper Articles
Re;- the Tax Remission Order
Granting Relief of Taxes and Interest levied on JDS Taxable Benefit Victims.
By Victor Drummond ©
December 2007
December 7th 2007 is a RED LETTER day for victims of the defective taxable benefits legislation.
Whether by accident or design two Canadian Newspapers – with large circulation – published articles on the Tax Remission Order announced in the November 14th 2007 Canada Gazette.
The OTTAWA CITIZEN Newspaper of December 7th carried a front-page Banner Headline declaring:-“TORIES FORGIVE HUGE JDS TAX BILLS” and on this same day the Victoria BC. TIMES COLONIST Newspaper published an article under the title:- JDS High-tech workers off the hook for tax.”
Both articles declared the appreciation of those victims who had been granted at least partial relief and/or refund of a part of the unfair taxes levied against them. And both articles carried negative comments on the approval of this tax remission order over the objections and -- adverse effect -- advice of senior tax officials – and at least one tax lawyer, (Mark Seigle of Ottawa)
The counter arguments go like this:-
(A) Giving special tax consideration to some – but not all victims – is a violation of the governments “Fair Tax” Policy – and unfair to other similar, identical, victims who are excluded from the order. (True)
Those who support that rationale, however, would rather no-one would get fair tax treatment if it is not applied to all such victims.
The All-or-Nothing rationale is not the correct solution – unless it is ALL.
(B) Giving “Fair Taxation” to ALL Canadians is setting a “DANGEROUS PRECIDENT”
Since when has being:- REASONABLE, FAIR, HONEST and JUST with Canadian Taxpayers been a “Dangerous” policy to apply?
It seems to me the opposite policy would be the really DANGEROUS one to apply – if you would like to be re-elected.
But those who rail against truly Fair Taxation do not care what hardships their defective taxable benefit legislation imposes on their victims. All they care about is maintaining the status quo and their own selfish interests.
Haven’t Canadians been told multiple times -- this fall – just how big the government’s income surplus is?
When you have a surplus of other people’s money – especially money stolen legally by way of “Income” taxation of fictional “Earned Income” -- wouldn’t that be an ideal time to give it back?
Wouldn’t now – before another Federal election gets under way – be an ideal time to put some substance into the government’s “Fair Tax for ALL Canadians promises and pledges?
The answers are “YES” to all above and to bring the issue to a clear cut end --- stop offering make-do patches to the victims of the defective taxable benefit legislation.
Amend the legislation to restore everyone’s RIGHT to fair taxation and allow a decade for resubmission of past tax returns that contain taxes on fictional “Earned Income”.
When the next Federal Election time arrives – remember those who supported EQUAL TREATMENT UNDER THE LAW. (Canadian Charter of Rights and Freedom’s – article 15(1))
Victor Drummond ©
A Commentary on recent Newspaper Articles
Re;- the Tax Remission Order
Granting Relief of Taxes and Interest levied on JDS Taxable Benefit Victims.
By Victor Drummond ©
December 2007
December 7th 2007 is a RED LETTER day for victims of the defective taxable benefits legislation.
Whether by accident or design two Canadian Newspapers – with large circulation – published articles on the Tax Remission Order announced in the November 14th 2007 Canada Gazette.
The OTTAWA CITIZEN Newspaper of December 7th carried a front-page Banner Headline declaring:-“TORIES FORGIVE HUGE JDS TAX BILLS” and on this same day the Victoria BC. TIMES COLONIST Newspaper published an article under the title:- JDS High-tech workers off the hook for tax.”
Both articles declared the appreciation of those victims who had been granted at least partial relief and/or refund of a part of the unfair taxes levied against them. And both articles carried negative comments on the approval of this tax remission order over the objections and -- adverse effect -- advice of senior tax officials – and at least one tax lawyer, (Mark Seigle of Ottawa)
The counter arguments go like this:-
(A) Giving special tax consideration to some – but not all victims – is a violation of the governments “Fair Tax” Policy – and unfair to other similar, identical, victims who are excluded from the order. (True)
Those who support that rationale, however, would rather no-one would get fair tax treatment if it is not applied to all such victims.
The All-or-Nothing rationale is not the correct solution – unless it is ALL.
(B) Giving “Fair Taxation” to ALL Canadians is setting a “DANGEROUS PRECIDENT”
Since when has being:- REASONABLE, FAIR, HONEST and JUST with Canadian Taxpayers been a “Dangerous” policy to apply?
It seems to me the opposite policy would be the really DANGEROUS one to apply – if you would like to be re-elected.
But those who rail against truly Fair Taxation do not care what hardships their defective taxable benefit legislation imposes on their victims. All they care about is maintaining the status quo and their own selfish interests.
Haven’t Canadians been told multiple times -- this fall – just how big the government’s income surplus is?
When you have a surplus of other people’s money – especially money stolen legally by way of “Income” taxation of fictional “Earned Income” -- wouldn’t that be an ideal time to give it back?
Wouldn’t now – before another Federal election gets under way – be an ideal time to put some substance into the government’s “Fair Tax for ALL Canadians promises and pledges?
The answers are “YES” to all above and to bring the issue to a clear cut end --- stop offering make-do patches to the victims of the defective taxable benefit legislation.
Amend the legislation to restore everyone’s RIGHT to fair taxation and allow a decade for resubmission of past tax returns that contain taxes on fictional “Earned Income”.
When the next Federal Election time arrives – remember those who supported EQUAL TREATMENT UNDER THE LAW. (Canadian Charter of Rights and Freedom’s – article 15(1))
Victor Drummond ©
Wednesday, December 5, 2007
The Pledge of Fair Taxation...
YOU BE THE JUDGE
An illustration of three INCOME Tax Situations
And the relative Fairness of each of them.
A TRUTH IN FICTION
By Victor Drummond ©
December 2007
(1)Donald Thump works for Wireless Gadgets Incorporated, (WGI), and has detailed knowledge of his employers growth prospects – present and future.
He knows his employer is about to introduce a new product that will revolutionize the industry and create a lot of action in the stock market.
So Donald rounds up all the money he can find -- and borrow -- and on
April 1,1999 buys 10,000 shares of WGI from his stock broker.
Donald’s adjusted Cost Base, (ACB), is 5.50 per share --
with brokers commission included – giving a total cost of:- $55,000
On July 12th 2000 the shares of WGI are trading heavily at $1,200 per share.
So Donald decides to sell his shares – pay off his loans –
and retire to the Bahamas.
Donald’s gross return on his 10,000 shares is:- $12,000,000 and his net return
-- with the brokers selling commission, and interest paid on the money borrowed
– all his ACB deducted -- Donald was still left with a clear profit of:- $11,920,000
In March 2001 Donald reports his 2000 Capital Gain Income – at the period II, 66.6%
inclusion rate – as:- $7,946,666
With a bottom line Income Tax level of 43% Donald paid $3,376,066 in Capital Gains
Tax.
Donald is happy to pay this tax and walk away with his remaining $8,543,934
WHAT COULD BE FAIRER THAN THAT?
(2)William Thump, Donald’s brother, is a nere-do-well and was released
from penitentiary for grand larceny a week before Donald made his WGI,
10,000 share stock purchase in April of 1999.
When William discovered how well the WGI shares were doing he began checking up on
Donald’s co-workers.
Especially those having positions in higher management.
William eventually found out that Donald’s immediate superior had several accounts –
with the same broker his brother was dealing with – and this person had some large
blocks of WGI stock in two of his accounts.
By sifting through the documents and papers -- in Donald’s possession – William was
able to acquire all the data and information needed to duplicate his victims
identity – and thereby access his victim’s accounts with the stock broker.
On the same day -- Donald sold his 10,000 WGI shares – and using false identity
documents William liquidated 10,000 WGI shares from his victims accounts.
He then had the proceeds transferred to an un-numbered account off-shore.
As William had only the brokers selling commission to deduct -- he had a clear
profit of some $11,975,000
William decides to report his ill-gotten gains -- to revenue Canada -- under the
umbrella of CRA’s Information document IT 256R.
So in 2001 he reports a Capital Gain of $7,983,332 -- i.e the 66.6% inclusion rate.
Also at a bottom line tax level of 43% William pays $3,342,833 in Capital Gains Tax
and happily walks away with the remaining $8,632,167
The CRA doesn’t ask William how he acquired the WGI shares he sold – they are only
interested in the tax they can collect from him.
NOTE (A) Both Donald and William now have the RIGHT to apply Capital LOSSES from
the past three years and/or any future years against their year 2000, CAPITAL
GAINS TAX, and thereby recover part -- or even all -- of these taxes paid.
(B)Furthermore if William’s theft is discovered – and he is forced to repay the
money he pilfered – the CRA will rebate the taxes William has paid on his now non
-existent Capital Gain. WHAT COULD BE FAIRER THAN THAT?
(3) Doreen Thump -- Donald and Williams sister -- is employed by WGI and being a
highly valued employee has been given the opportunity to participate in the WGI
Employee Share Purchase Plans, (ESPP’s)
Upon the advice of her brother Donald -- to purchase all the shares in WGI that her
ESPP allows -- Doreen applies to purchase the 1999 maximum of 10,000 shares under
the plan.
Doreen’s application is vested in April of 1999 and the shares are to be exercised,
(delivered) one year later.
Until the shares purchased are actually delivered Doreen has absolutely no control
over them.
Under terms of her ESPP Doreen is allowed to purchase WGI shares at a discount of 15%
from the Fair Market Value, (FMV), the shares are deemed to be worth as of the day
of vesting.
As the shares were estimated to have an FMV of $5,20, (before commission), Doreen paid $44,200 for her 10,000 shares – plus a $0.20 commission per share.
This gave Doreen an Adjusted Cost Base, (ACB), of $46,200 for her 10,000 share
purchase of WGI stock.
In April of year 2000, -- when her WGI shares were exercised, (delivered), -- Doreen
was thrilled to see her 10,000 shares were now trading at $875.00 each and worth an estimated $8,750,000.
Doreen consulted Donald who advised her to hold on to her shares as they were gaining in value daily with no downturn in sight.
A few of Doreen’s co-workers and close friends were also enjoying the potential windfall of a few million dollars and decided to celebrate by taking their summer
vacation together touring around Europe.
So on July 2nd 2000 they each sold 5 shares of WGI stock which was then trading at $1,050.00 per share and took the approximately $5,000 cash to buy their European
tour tickets.
The happy party left for Europe on July 5th and would not return to Canada until July 30th 2000.
Unfortunately while Doreen and her party were away a major stock market correction got under way. By the time they all returned to Canada – on July 30th – WGI shares were trading at less than $100,00 per share.
Doreen was very disappointed but decided half a loaf was better than none so she sold her 9,995 shares via an at-market order and received $98.00 per share. This gave her a return of $975,125 after paying the broker a selling commission.
The nearly $12,000,000 drop in her potential profit was not of great concern to Doreen as a gross gain of $980,125 -- (allowing for the $5,000 received from the earlier sale of 5 shares), --gave her a rather warm and fuzzy feeling.
With her ACB of $46,200 deducted Doreen was left with a net gain of $933,925 which still left her quite pleased and content.
That is until Doreen’s year 2000, T4 was received showing an “Earned Income” of over $8,700,000
The WGI payroll department had submitted Doreen’s T4 for year 2000 showing an FMV for her 10,000 WGI shares -- as of April 1, 2000 the date they were delivered to her -- as being $875.00 per share. This produced a gross taxable benefit of:- $8,750,000 – less her adjusted cost base of $46,200 – leaving Doreen with a false net taxable benefit gain of:- $8,703.800.
At the year 2000, period II inclusion rate of 66.6% the taxable benefit added to
Doreen’s “Earned Income” was:-$5,802,054
With a bottom line tax level of 43% applied to this fictitious “Earned Income” Doreen was levied a “taxable benefit” tax of:- $2,494,883
The so called taxable benefit tax exceeded Doreen’s real Gross income by:- $1,560,958
i.e. 2,494,883 minus 933,925
Canada Revenue Agency, however, generously provided Doreen with a tax unto death deferral via form T1212.
If Doreen had any WGI shares left in her possession, -- that were acquired via an ESPP’s process – she could not dispose of them -- in any way -- without causing her deferred taxable benefit taxes to become payable on the very next taxation return date.
Furthermore as long as the deferred taxes are not paid Doreen can not move out of Canada.
Last but not least – If Doreen had any prior year, or following years LOSSES on any shares investment of any kind – she can not apply any of those losses against the real taxes already levied on the fictitious taxable benefits.
She is much worse off than William who stole his shares.
HOW IS THIS AS FAIR TAXATION FOR ALL CANADIAN TAXPAYERS?
So how would you rate Canada’s current government’s -- Fair Taxation Pledge to ALL Canadians – On a Scale of ONE to TEN? ( 1 meaning “non-existent” and 10 “truly Fair”)
If you said ZERO then you are right on target.
Kindly give your support for truly fair “Income Taxation” when the polls open for the next Federal election.
Victor Drummond ©
Authors comments:-
Although the persons named are fictional -- the scenarios are not.
The scenarios related in this article represent many typical,
real tax situations that have -- and still are -- causing severe
financial distress and totally destroying the peace of mind of many
Honest, Hard Working Canadian Taxpayers.
Fair Taxation for “All Canadians” remains a myth as long as
defective “taxable benefit” Legislation remains in operation.
Shares traded on a stock exchange are NOT A TAXABLE BENEFIT no matter how
they are acquired.
Sunday, December 2, 2007
Lets not Pretend....
PLAYING – LET’S PRETEND
A story to illustrate Unfair Taxation of Canadians
By Victor Drummond ©
December 2007
As I recall my early year’s one of childhoods favourite past-times was playing fantasy games such as Cops and Robbers, Train Engineer, Airline Pilot, and a variety of Super Hero’s such as Buck Rogers and The Lone Ranger.
Those were some of the happiest times in memory – and as I grew older it seemed
the pretend fantasies were a thing of the past.
Recently, however I realized that adults continue to play such games inter-mixed with interludes of reality.
Among the most prolific “Let’s Pretend” players are members of the Canadian Political Parties and the government agencies they create and/or support.
Leaders in the “Let’s Pretend” arena are the federal party in power, (at any given time), and the Canada Revenue Agency, (CRA).
Currently the party in power has declared the intention of providing ALL Canadians with “Fair” and “Equal” taxation?
Is that a “Lets Pretend” scenario?
If you have any doubts -- on this new government initiative -- just read the speech made by the Honourable Jim Flaherty, Minister of Finance, when he addressed the House of Commons, Standing Committee on Finance – January 30th 2007.
Mr. Flaherty’s concluding remarks alone should convince the most confirmed sceptic that “Fair Taxation” for ALL Canadians is just around the corner.
In concluding his speech Mr. Flaherty said:-
“A few finals thoughts to conclude.”
“In the end, our government was faced with a hard choice, and now this Parliament is faced with a big decision: to make the Tax Fairness Plan a reality.”
“We chose not only to recognize a growing problem occurring in Canada’s tax system, but to fix that problem.”
“We made our decision based not on political calculations, as did the previous government, but on principles of tax fairness, balancing the needs of individual investors with the interests of taxpayers and their families.”
“And we acted responsibly and decisively. It is not tax fairness if it is only for a few.”
Those are the kind of words we victims of the taxable benefit -- “Tax on Fictitious Profits” -- are waiting to see put into action.
“We chose not only to recognize a growing problem occurring in Canada’s Tax System but to fix that problem.”
Well Mr. Flaherty lets stop pretending the problem with the Canada Taxable Benefit legislation doesn’t exist.
When honest hard-working Canadian taxpayers are taxed on “Earned Income” that never was -- and never will-be – believe me there is still a BIG PROBLEM in the Canada Tax system.
How about recognizing that problem and acting decisively to fix it?
As you declared:- “It is not tax fairness if it is only for a few.”
I could not have said it better -- myself -- or in plainer language.
Believe me -- if I had the authority to do something about it – and I said that I would do something about it – it would be fixed ASAP come hell and/or high water.
What does it mean when you say it?
So how long is going to take for you to recognize and correct this problem?
Or are we other victimized Canadians expected to pretend the favouritism given the SDL (JDS) victims of this same legislation – via the SDL Employee’s Tax Remission Order -- is all the “Fairness” required?
None of us – that have been left out of the SDL, (JDS), deal -- has that good an imagination.
But we do have 100 percent recall when the next Federal election gets under way.
So let’s stop pretending – fix this problem properly – amend the defective legislation and restore the RIGHT of every Canadian to truly fair REAL INCOME taxation.
Victor Drummond ©
A story to illustrate Unfair Taxation of Canadians
By Victor Drummond ©
December 2007
As I recall my early year’s one of childhoods favourite past-times was playing fantasy games such as Cops and Robbers, Train Engineer, Airline Pilot, and a variety of Super Hero’s such as Buck Rogers and The Lone Ranger.
Those were some of the happiest times in memory – and as I grew older it seemed
the pretend fantasies were a thing of the past.
Recently, however I realized that adults continue to play such games inter-mixed with interludes of reality.
Among the most prolific “Let’s Pretend” players are members of the Canadian Political Parties and the government agencies they create and/or support.
Leaders in the “Let’s Pretend” arena are the federal party in power, (at any given time), and the Canada Revenue Agency, (CRA).
Currently the party in power has declared the intention of providing ALL Canadians with “Fair” and “Equal” taxation?
Is that a “Lets Pretend” scenario?
If you have any doubts -- on this new government initiative -- just read the speech made by the Honourable Jim Flaherty, Minister of Finance, when he addressed the House of Commons, Standing Committee on Finance – January 30th 2007.
Mr. Flaherty’s concluding remarks alone should convince the most confirmed sceptic that “Fair Taxation” for ALL Canadians is just around the corner.
In concluding his speech Mr. Flaherty said:-
“A few finals thoughts to conclude.”
“In the end, our government was faced with a hard choice, and now this Parliament is faced with a big decision: to make the Tax Fairness Plan a reality.”
“We chose not only to recognize a growing problem occurring in Canada’s tax system, but to fix that problem.”
“We made our decision based not on political calculations, as did the previous government, but on principles of tax fairness, balancing the needs of individual investors with the interests of taxpayers and their families.”
“And we acted responsibly and decisively. It is not tax fairness if it is only for a few.”
Those are the kind of words we victims of the taxable benefit -- “Tax on Fictitious Profits” -- are waiting to see put into action.
“We chose not only to recognize a growing problem occurring in Canada’s Tax System but to fix that problem.”
Well Mr. Flaherty lets stop pretending the problem with the Canada Taxable Benefit legislation doesn’t exist.
When honest hard-working Canadian taxpayers are taxed on “Earned Income” that never was -- and never will-be – believe me there is still a BIG PROBLEM in the Canada Tax system.
How about recognizing that problem and acting decisively to fix it?
As you declared:- “It is not tax fairness if it is only for a few.”
I could not have said it better -- myself -- or in plainer language.
Believe me -- if I had the authority to do something about it – and I said that I would do something about it – it would be fixed ASAP come hell and/or high water.
What does it mean when you say it?
So how long is going to take for you to recognize and correct this problem?
Or are we other victimized Canadians expected to pretend the favouritism given the SDL (JDS) victims of this same legislation – via the SDL Employee’s Tax Remission Order -- is all the “Fairness” required?
None of us – that have been left out of the SDL, (JDS), deal -- has that good an imagination.
But we do have 100 percent recall when the next Federal election gets under way.
So let’s stop pretending – fix this problem properly – amend the defective legislation and restore the RIGHT of every Canadian to truly fair REAL INCOME taxation.
Victor Drummond ©
Thursday, November 29, 2007
Who are the thieves .....
ROBBING HOOD AND HIS MERRY MEN
A commentary on who wears the white hats
In this Fact versus Fiction review
By Victor Drummond ©
November 2007
One of the most popular fiction stories -- when I was quite young – was the tale of
Robin Hood and his merry band of outlaws.
The legends tell of how Robin became a hero to the bullied, abused and over-taxed peasants in the Nottingham, Barnsdale and Sherwood areas of England – back in the days of the evil King John.
As I recall the movie version -- of the story, starring Errol Flynn -- Robin becomes an outlaw leader after his father was killed by an envious and treacherous competitor -- whom Robin had recently defeated -- in an archery contest.
Robin was the next intended victim -- of the assassin -- but was faster and more accurate in his archery skills so he killed his attacker in self defence.
Robin, however was not about to plead his case before the unscrupulous sheriff of Nottingham or appeal his case to be tried before the upper courts of the evil King John.
Consequently he hid out in Sherwood forests where he eventually collected a small army of similar outlaws. Folklore makes a hero of Robin Hood -- and his gang -- for standing up to the unfair, and unjust establishment.
The majority of the population even approves of his practice of holding up rich travellers who have had the misfortune to be using the paths through the Sherwood forests on their journey(s).
This general approval may have been short lived had Robin not shared his loot with the victimized local citizens.
A somewhat unorthodox corrective action to the unfair tax legislation of the time.
So who gets to be the good guys in this situation and wear the white hats?
It all depends upon who you ask.
A democratic poll would give the white hats to Robin Hood and his gang of happy outlaws.
An opinion poll of the establishment would give the white hats to the Sheriff of Nottingham and his supporters. After all they are trying to uphold the law – such as it is -- one way or another.
Their situation is not a whole lot different than the circumstances associated with the defective taxable benefit legislation that gives our current establishment power to extort
“Income” tax from Canadian citizens on non-existent income.
This must be one law left over from the days of unscrupulous King Jean.
In any event the white hats do not go to the establishment in this case.
So far there hasn’t been a Robin Hood -- show up with his merry men -- to correct the defective unfair taxable benefit legislation.
Although the present establishment appears to be trying. (See prior postings:- “Could anyone want for more” and “Please sir..”)
Whoever initiates real action to properly fix this unfair legislation – gets to wear the white hats in this instance.
Save your vote -- in the coming federal election -- for the party wearing the white hats.
Victor Drummond ©
Sunday, November 25, 2007
Mr Fixit.....
DOING THE JOB RIGHT
A commentary on the 2007 Fair Taxation Pledge
Promising “Fair Taxation to All Canadians”
By Victor Drummond ©
November 2007
There are a number of adages that address the right versus wrong way to fix a problem, i.e.:-
(a) Do the job right or don’t do it at all,
(b) Let someone do the job that knows how.
(c) Don’t start something you can’t finish.
(d) A job half done is not done at all.
(e) A job done by halves is never finished.
To name a few.
For anyone old enough to remember when automobile tires were not air tight, (tubeless), and they required a thin walled rubber inner tube to maintain -- the necessary -- air pressure in the tire -- therein is a perfect analogy to illustrate the wisdom of the above sayings.
The greatest hazard to those tires was the pick-up of a nail in the tread of the tire – which would penetrate the tire casing and puncture the inner tube.
When that happened the tire would go flat and had to be removed from the rim. Then a sealing rubber patch had to be applied to the inner tube. Then the nail -- in the tire -- had to be found and removed or the tube repair would be futile.
Sometimes the offending nail was short and barely broke through the inner belting of the tire.
In really difficult situations the nail could not be seen from the outside of the tire or felt by running one’s fingers around the inside of the tire.
When the cause of the puncture could not be easily found there was always a great temptation to assume the cause of the puncture was no longer present and to put the repaired tube and tire back on the rim – inflate to the correct pressure and resume driving.
If the item that had caused the original puncture was still operative it would not be long before the tire went flat again.
A tack with the head worn off and which only reached the surface of the inner tube when the weight of the car was pressing down on the tack shaft would take some time to puncture the tube – but if the car were driven under this condition -- a puncture would inevitably recur before long.
If the original cause of the problem was not found and corrected – the job was not done right – and the situation could then become much more dangerous than not attempting to do the job in the first place.
This is a perfect example for comparison to the current government’s overtures to the voting public on the basis of their commitments to provide all Canadians with “Fair Taxation”.
Promises to provide every Canadian with Fair Taxation – without restoring the RIGHT of every Canadian to Fair Taxation -- is the equivalent of patching the inner tube without removing the cause of the puncture.
By granting some individual taxpayers’ remission of unjust taxes – without restoring the RIGHT of every Canadian to Fair Taxation -- is the equivalent leaving the puncturing agent still imbedded in the tire tread.
You may go another few miles with that repair but it will inevitably leave you stranded with another flat tire.
If our current leaders are not able and/or willing to do the job right – then they should admit their inadequacies and leave the job to someone who has the moxie, the integrity, the ability and the determination to do the job right.
If any of our wannabe Prime Ministers will commit to correcting the defective taxable benefit legislation – Will they Please Stand up to be counted?
There are thousands of victimized – honest, hard-working Canadian Taxpayers lining up to vote for you.
Keep in mind when the next Federal Election is called – has anyone committed to doing this job right.
We do not need another round of flat tires, i.e. another round of Canadian Taxpayers Legally Robbed.
Victor Drummond ©
A commentary on the 2007 Fair Taxation Pledge
Promising “Fair Taxation to All Canadians”
By Victor Drummond ©
November 2007
There are a number of adages that address the right versus wrong way to fix a problem, i.e.:-
(a) Do the job right or don’t do it at all,
(b) Let someone do the job that knows how.
(c) Don’t start something you can’t finish.
(d) A job half done is not done at all.
(e) A job done by halves is never finished.
To name a few.
For anyone old enough to remember when automobile tires were not air tight, (tubeless), and they required a thin walled rubber inner tube to maintain -- the necessary -- air pressure in the tire -- therein is a perfect analogy to illustrate the wisdom of the above sayings.
The greatest hazard to those tires was the pick-up of a nail in the tread of the tire – which would penetrate the tire casing and puncture the inner tube.
When that happened the tire would go flat and had to be removed from the rim. Then a sealing rubber patch had to be applied to the inner tube. Then the nail -- in the tire -- had to be found and removed or the tube repair would be futile.
Sometimes the offending nail was short and barely broke through the inner belting of the tire.
In really difficult situations the nail could not be seen from the outside of the tire or felt by running one’s fingers around the inside of the tire.
When the cause of the puncture could not be easily found there was always a great temptation to assume the cause of the puncture was no longer present and to put the repaired tube and tire back on the rim – inflate to the correct pressure and resume driving.
If the item that had caused the original puncture was still operative it would not be long before the tire went flat again.
A tack with the head worn off and which only reached the surface of the inner tube when the weight of the car was pressing down on the tack shaft would take some time to puncture the tube – but if the car were driven under this condition -- a puncture would inevitably recur before long.
If the original cause of the problem was not found and corrected – the job was not done right – and the situation could then become much more dangerous than not attempting to do the job in the first place.
This is a perfect example for comparison to the current government’s overtures to the voting public on the basis of their commitments to provide all Canadians with “Fair Taxation”.
Promises to provide every Canadian with Fair Taxation – without restoring the RIGHT of every Canadian to Fair Taxation -- is the equivalent of patching the inner tube without removing the cause of the puncture.
By granting some individual taxpayers’ remission of unjust taxes – without restoring the RIGHT of every Canadian to Fair Taxation -- is the equivalent leaving the puncturing agent still imbedded in the tire tread.
You may go another few miles with that repair but it will inevitably leave you stranded with another flat tire.
If our current leaders are not able and/or willing to do the job right – then they should admit their inadequacies and leave the job to someone who has the moxie, the integrity, the ability and the determination to do the job right.
If any of our wannabe Prime Ministers will commit to correcting the defective taxable benefit legislation – Will they Please Stand up to be counted?
There are thousands of victimized – honest, hard-working Canadian Taxpayers lining up to vote for you.
Keep in mind when the next Federal Election is called – has anyone committed to doing this job right.
We do not need another round of flat tires, i.e. another round of Canadian Taxpayers Legally Robbed.
Victor Drummond ©
Wednesday, November 21, 2007
Dan do you see that big green Tree....
FAIR TAXATION – REALITY OR MIRAGE
A Commentary on Current Events related to the Prospect Canadian Victims
Of taxation on Fictitious Income will ever actually realize
“Truly Fair” -- Income Taxation.
By Victor Drummond ©
November 2007
Ocean going sailors and travellers -- crossing the great deserts of this world -- are familiar with a natural phenomenon whereby objects that are hundreds of miles away appear to be nearby.
These -- visually near but actually far distant -- objects are actually real – but not anywhere close to where they appear to be.
They are not hallucinations. But if the observer attempts to move towards the image they see -- it will disappear without a trace.
Pledges and promises made by governments -- and/or politicians -- often do the same thing.
Canadian taxpayers, who were levied taxes on non-existent “Earned Incomes”, have been plodding along -- for the past eight years in a quagmire worse than walking on the shifting sands of any desert – looking for the fair and equal taxation that are rightfully theirs.
In the years from 1999 through 2005 – under the previous regime – there wasn’t a ghost of a chance of actually achieving that right. There were no visual images – real or imaginary – to guide or encourage those weary taxpayers. The defective taxable benefit legislation – that legalized their robbery in the first place – was staunchly defended by the Cretien and Martin governments.
With the change of government -- that took place in 2006 -- a young conservative MP, representing the riding of:- Saanich, Gulf Islands in British Columbia, -- The truly Honourable Gary Lunn – submitted a request -- for a remission order of those unfair taxes.
This appeal eventually found approval by her Excellency the Right Honourable Michaelle Jean – Canada’s Governor General.
According to the sketchy information provided -- about this tax remission order – in the Canada Gazette issue of November 14, 2007 – this document arrived at the governor generals office with the endorsement of Canada’s National Minister of Revenue – the Honourable Carol Skelton.
The Canada Gazette article did not comment on the legality of the remission order after it was approved by her Excellency the Governor General for Canada.
Is Royal Approval -- without the passage of the order by the House of Commons – and/or the approval of the Prime Minister – and/or the passage by Canada’s Senate – sufficient to give the order the force of law?
The Canada Gazette article makes no mention of these other approvals being required or received.
Perhaps that is the reason that one source stated – a few weeks ago – the JDS Employee’s tax remission order was still before the courts.
Also stated – not long ago – this remission order only applied to those JDS Corporation employees in British Columbia -- who were named in the order – and to no one else.
How is that for “Fair and Equal” tax treatment for all Canadians?
Now this conundrum raises a few important questions, i.e.
(1) If the Remission Order – already given Royal Assent – is not bona fide without additional approvals then it is subject to a review by those who must give approval – and it may – like a mirage – just disappear. Is it now Law or Not?
(2) If the Remission Order has the force of law -- with the approvals it already has -- then there is a Basis for demanding equal treatment under the law -- as provided by the Canadian Charter of Rights and Freedoms article 15(1) and also by the updated Taxpayers Charter Article (8).
There is also a basis for accepting the provision of the Pledge of Fair Taxation -- to give every person who appeals their tax assessment -- a clear and plain explanation of the amended legislation that now relieves them of those ridiculous taxes on their 1999 and 2000 non-existent "Earned Income”.
This would also give some substance to the 2007 pledge of “Fair Taxation” for all Canadians.
(3) If the current government wished to restore the RIGHT of all Canadians to truly “REAL” Fair Taxation they would amend the defective taxable benefit legislation to remove corporation/company shares from the taxable benefits classification.
This would eliminate the REAL possibility that a promise of “Fair Taxation” for all Canadians might disappear -- like a mirage – at the whim of some court judge or appeals officer.
Think about this situation when invited to vote for someone in the next Federal Election.
Do you want to be controlled and represented by MIRAGE makers.
Victor Drummond ©
A Commentary on Current Events related to the Prospect Canadian Victims
Of taxation on Fictitious Income will ever actually realize
“Truly Fair” -- Income Taxation.
By Victor Drummond ©
November 2007
Ocean going sailors and travellers -- crossing the great deserts of this world -- are familiar with a natural phenomenon whereby objects that are hundreds of miles away appear to be nearby.
These -- visually near but actually far distant -- objects are actually real – but not anywhere close to where they appear to be.
They are not hallucinations. But if the observer attempts to move towards the image they see -- it will disappear without a trace.
Pledges and promises made by governments -- and/or politicians -- often do the same thing.
Canadian taxpayers, who were levied taxes on non-existent “Earned Incomes”, have been plodding along -- for the past eight years in a quagmire worse than walking on the shifting sands of any desert – looking for the fair and equal taxation that are rightfully theirs.
In the years from 1999 through 2005 – under the previous regime – there wasn’t a ghost of a chance of actually achieving that right. There were no visual images – real or imaginary – to guide or encourage those weary taxpayers. The defective taxable benefit legislation – that legalized their robbery in the first place – was staunchly defended by the Cretien and Martin governments.
With the change of government -- that took place in 2006 -- a young conservative MP, representing the riding of:- Saanich, Gulf Islands in British Columbia, -- The truly Honourable Gary Lunn – submitted a request -- for a remission order of those unfair taxes.
This appeal eventually found approval by her Excellency the Right Honourable Michaelle Jean – Canada’s Governor General.
According to the sketchy information provided -- about this tax remission order – in the Canada Gazette issue of November 14, 2007 – this document arrived at the governor generals office with the endorsement of Canada’s National Minister of Revenue – the Honourable Carol Skelton.
The Canada Gazette article did not comment on the legality of the remission order after it was approved by her Excellency the Governor General for Canada.
Is Royal Approval -- without the passage of the order by the House of Commons – and/or the approval of the Prime Minister – and/or the passage by Canada’s Senate – sufficient to give the order the force of law?
The Canada Gazette article makes no mention of these other approvals being required or received.
Perhaps that is the reason that one source stated – a few weeks ago – the JDS Employee’s tax remission order was still before the courts.
Also stated – not long ago – this remission order only applied to those JDS Corporation employees in British Columbia -- who were named in the order – and to no one else.
How is that for “Fair and Equal” tax treatment for all Canadians?
Now this conundrum raises a few important questions, i.e.
(1) If the Remission Order – already given Royal Assent – is not bona fide without additional approvals then it is subject to a review by those who must give approval – and it may – like a mirage – just disappear. Is it now Law or Not?
(2) If the Remission Order has the force of law -- with the approvals it already has -- then there is a Basis for demanding equal treatment under the law -- as provided by the Canadian Charter of Rights and Freedoms article 15(1) and also by the updated Taxpayers Charter Article (8).
There is also a basis for accepting the provision of the Pledge of Fair Taxation -- to give every person who appeals their tax assessment -- a clear and plain explanation of the amended legislation that now relieves them of those ridiculous taxes on their 1999 and 2000 non-existent "Earned Income”.
This would also give some substance to the 2007 pledge of “Fair Taxation” for all Canadians.
(3) If the current government wished to restore the RIGHT of all Canadians to truly “REAL” Fair Taxation they would amend the defective taxable benefit legislation to remove corporation/company shares from the taxable benefits classification.
This would eliminate the REAL possibility that a promise of “Fair Taxation” for all Canadians might disappear -- like a mirage – at the whim of some court judge or appeals officer.
Think about this situation when invited to vote for someone in the next Federal Election.
Do you want to be controlled and represented by MIRAGE makers.
Victor Drummond ©
Sunday, November 18, 2007
The JDS Employee's Tax Remission Order..
THE JDS EMPLOYEES TAXABLE BENEFIT
REMISSION ORDER – OUTLINE
What does this outline say?
What does the Whole Text of the Remission Order Mean?
A Commentary and Conjecture by Victor Drummond ©
November 2007
Below is a copy of the Taxable Benefit tax remission order as reported in the Canada Gazette on November 14th 2007. The description provided in the Gazette is sketchy and
leaves plenty of room for miss-interpretation by anyone less than a professional Income Tax Specialist.
DISCLAIMER
As your’s truly is not such a specialist kindly observe this disclaimer, i.e. that the interpretation given here is purely logical speculation and not necessarily a true statement of the real meaning of the subject Tax Remission Order.
Logical Assumption No. (1). (Rationale)
The Conservative Member of Parliament for the riding of Saanich, Gulf Islands, i.e.
The Honourable Gary Lunn -- is a tax professional and it is logical to assume that he drafted the original tax remission order specifically for the victims of the tax on potential income in his riding.
More specifically those persons formerly employed by the JDS Uniphase Corporation who acquired their employers shares via an Employee Shares Purchase Plan, (ESPP).
Mr. Lunn may, or may not, have been aware of the tens of thousands of other similar taxpayers – right across Canada -- who were unjustly taxed in exactly the same way.
From the way the remission order is worded I suspect he wasn’t aware of the scope of the problem. For if he was – then it would be logical to assume the tax remission order would not be worded for specific persons – even if they had could have hired him, as a group, to represent them.
Conclusion (1):- The Tax remission order was unintentionally written as to be to be totally unfair to all other Canadian Taxpayers who had been victimized the same
way via the same defective Tax legislation.
The remission order therefore – accidentally – became a violation of the Canadian
Charter of Rights and Freedoms Article 15(1) and the later updated Taxpayers Bill
of Rights Article 8.
Logical Assumption No. (2). (Rationale)
The Honourable Minister of National Revenue, Ms. Carol Skelton, (at that time), endorsed the remission order prepared by MP G. Lunn. The Honourable Ms. Skelton was likely also unaware of the scope of the problem at that time.
The endorsed document was then approved by the Right Honourable Michaelle Jean, Governor General of Canada which then became a codicil of Canada’s Income Tax Act. It is also highly doubtful that Her Excellency had any concept of the scope of the problem – but was well aware that the taxation of fictitious income was unjust, unfair, and not in the government’s or the public’s best interest.
Conclusion (2):- The tax remission order – that brought some semblance of “Fair Taxation” to those JDS Uniphase employee’s -- named in the order – actually became an amendment to the defective taxable benefits legislation more by accident than intent.
This conclusion is also strongly supported by the behaviour of the Conservative MP’s, -- including the PM and Minister’s of National Finance and National Revenue – all of who declined to acknowledge any and all appeals for details of the tax remission order – or in many cases to even admit it existed.
Logical Assumption (3), (Rationale)
From the sketchy details of the actual remission order it appears to operate in the following way:- Until the tech market correction -- that began in July of the year 2000 – Canadians who acquired employer’s shares -- via an ESPP, or Employer Shares Option (ESO) plans were exposed to being taxed on fictitious “Earned Income” just like the JDS Employees in British Columbia.
Although grossly unfair this policy did not produce wholesale hardship as long as the corporation shares kept rising in value. When the market correction hit – in mid-July of the year 2000 -- thousands of taxpayers found themselves levied with huge taxes on prodigious non-existent taxable benefits that were added to their Income Tax T4 documents. And thereby also reported to the Canada Revenue Agency – by the employer -- as “Earned Income”
Remission of taxes levied -- on the non-existent “Earned Income” -- can be achieved by cancelling the reported “taxable benefit” amount that was produced by the assumed “Fair Market Value”, (FMV) of all shares delivered, (exercised), to the employee in the years 1999 and 2000.
By allowing these taxpayers to report all ESPP/ESO shares exercised and/or liquidated in year 1999 and/or 2000 as being valued at the essentially zero value level they had -- as of December 29th in the year 2006 -- the inflated FMV they were initially taxed at in 1999 and/or 2000 is effectively wiped out.
Conclusion (3):- The $ numbers in Column 2 -- of Schedule 2 & 3 below -- I conclude – Is the “Taxable Benefit” amount produced by the FMV of the shares
Exercised by the employee named in column 1 and reported to the CRA,
by the employer as “Earned Income”.
(Some Employee names appear twice in column 1. It appears logical one
appearance is for a 1999 reported taxable benefit – and a second
appearance is for a year 2000 taxable benefit.)
By cancelling these reported taxable benefit amounts -- adjusted for the
persons base tax percent and the year(s) inclusion rate -- the excess taxes
are effectively removed.
Logical Assumption (4), (Rationale)
By allowing the taxpayer to declare their ESPP/ESO shares transactions for the year(s) 1999 and/or 2000 -- at the share value as of December 29th 2006 -- then every one of those taxpayers will be declaring a huge loss on their shares disposition.
As the original taxable benefits legislation blocked the application of “Capital Losses” against prior/succeeding taxes on those same shares when taxed as a “taxable benefit” a similar block is incorporated in this tax remission order.
Conclusion (4):-
The move towards truly fair taxation -- per the JDS tax remission order – falls a long way short of being 100% fair.
A real “Fair Taxation Policy” would be to correct the defective taxable benefit legislation to exclude intangible items -- such as volatile company stocks and corporation shares – from the taxable benefit classification altogether. These items are NOT NEAR CASH ITEMS and they have NO TANGIBLE QUALITIES. They can not be exchanged at a face value – as they have no FACE VALUE.
The government would still get all the revenue they are justly entitled to via the “Capital Gains” tax legislation – which at least can be applied uniformly.
How anyone can put any confidence, whatsoever, in a political organization -- that is claiming to provide “Fair Taxation” to all Canadians but allows the taxable benefits legislation to remain with a flaw that produces this bungled result – is way beyond me.
As it stands this defective taxable benefit legislation denies taxpayers their RIGHT to fair taxation – so it is therefore impossible to assure “All Canadians” will receive “Fair Taxation” no matter how many promises or pledges are announced – as long as this legislation continues in force.
A half a loaf is better than none – however – so let’s use the leverage we have to bring about as fair a tax result as these tools will allow us.
The 2007 updated “Fair Taxation Pledge” -- and related documents – are provide for dissatisfied Canadian Taxpayers to utilize one of the methods for asking the government to review their tax situation and grant them the same consideration as was given to the JDS Employees in Gary Lunn’s riding. See:- www.cra.gc.ca/fairness and/or read the prior posted article:- “Could Anyone Want for More”
I am advising the taxable benefit victim in my family -- to do the following:-
Call the government’s hand on this issue – and (b) to see just how quickly and how fairly they will treat his application, i.e. Complete and submit Form RC4288-e – Request for Taxpayer Relief.
This appears to be the form best suited to listing distant past. (more than 3 years), unjust taxation situations – and provides places to describe events that justify a tax review and tax remission -- at least equal to the deal provide to the JDS Employees of British Columbia.
If our governments word -- to provide “All Canadians Fair Taxation” according to their 2007 pledge and recent public announcements – is worth the time it takes to listen to them –
then every such taxable benefits victim -- who submits a similar request -- must receive equivalent remission of their unfair taxation as well.
The Canada Gazette report is displayed below.
Leave a comment if you have an opinion on this article and/or this issue.
Victor Drummond ©
===============================================
THE CANADA GAZETTE
Vol. 141, No. 23 — November 14, 2007
Registration
SI/2007-99 November 14, 2007
FINANCIAL ADMINISTRATION ACT
Certain Former Employees of SDL Optics, Inc. Remission Order
P.C. 2007-1635 October 25, 2007
Her Excellency the Governor General in Council, considering that it is in the public interest to do so, on the recommendation of the Minister of National Revenue, pursuant to subsection 23(2) (see footnote a) of the Financial Administration Act, hereby makes the annexed Certain Former Employees of SDL Optics, Inc. Remission Order.
CERTAIN FORMER EMPLOYEES OF SDL OPTICS, INC. REMISSION ORDER
INTERPRETATION
1. In this Order, "employment benefit" means a benefit under subsection 7(1) of the Income Tax Act in respect of the acquisition of shares, in 1999 and 2000, through the stock purchase plan for employees of SDL Optics, Inc.
REMISSION
2. Remission is granted to the taxpayers set out in column 1 of the schedule for the amount set out in column 2, in respect of the 1999 or 2000 taxation years, as the case may be, which represents,
(a) for those taxpayers set out in items 1 to 21 of the schedule, all or a portion of tax paid or payable under Part I of the Income Tax Act in respect of an employment benefit; or
(b) for those taxpayers set out in items 22 to 42 of the schedule, all or a portion of interest paid or payable under Part I of that Act, on tax paid or payable under that Part in respect of an employment benefit.
CONDITIONS
3. The remission set out in paragraph 2(a) is granted with one of the following conditions:
(a) in respect of those taxpayers set out in items 1, 4 to 11, 13, 15, and 17 to 19 of the schedule, that the taxpayer agrees to reduce the adjusted cost base of any shares held at the close of the stock markets on December 29, 2006 that were, or are identical to those, purshased in 1999 or 2000 through the stock purchase plan for employees of SDL Optics, Inc. by the amount set out in column 2 of the schedule, divided be the taxpayer's effective federal tax rate on the employment benefit; and
(b) in respect of those taxpayers set out in item 2, 3, 12, 14, 20 and 21 of the schedule, that the taxpayer agrees not to claim a deduction in respect of net capital losses, equal to one-half the amount set out in column 2 of the schedule, divided by the taxpayer's effective federal tax rate on the employment benefit.
SCHEDULE
(Sections 2 and 3)
Item Column 1
Taxpayer Column 2
Amount ($)
1. Sheri Colwell 1,430.92
2. Timothy Couch 6,551.90
3. Grant Coulombe 7,261.63
4. Rhonda Fleming 10,753.70
5. Vicki Harris 15,868.95
6. Hanna Kowalski 3,563.23
7. John Lauder 734.62
8. Howard Lo 14,285.42
9. Timothy Ying Tai Lo 30,675.50
10. Laura Meyer 134,847.28
11. Christie Michaud 2,587.67
12. Christine Mollerud 183,371.94
13. Anthony Ong 14,247.68
14. Mark Ord 2,718.19
15. Dennis Rasmussen 3,975.60
16. Dean Rheault 4,038.83
17. Cornelis Scheffer 672.63
18. Pamela Shwab 183.47
19. Peter Stern 5,945.87
20. Penny Taylor 20,202.28
21. Sandra Woodward 2,641.04
22. Victoria Barter 14,589.26
23. Allan Baxter 3,451.66
24. David Bengston 441.50
25. David Benson 860.22
26. Shannon Campbell 3,390.45
27. Timothy Couch 1,679.34
28. Grant Coulombe 2,733.15
29. Gloria Davenport 21,102.90
30. Connie Gethings 479.08
31. Don Hargreaves 12,706.01
32. Howard Lo 1,003.51
33. Laura Meyer 52,089.41
34. Tracy Mills 47,108.37
35. Christine Mollerud 179,260.64
36. Carina Paredes 3,287.87
37. Martha Perdomo 543.98
38. Dean Rheault 1,584.06
39. Penny Taylor 28.91
40. Richard Van Acken 51.82
41. Joseph Wood 14,330.76
42. Sandra Woodward 3.30
EXPLANATORY NOTE
(This note is not part of the Order.)
The Order remits all or a portion of federal income tax paid or payable in respect of the 1999 or 2000 taxation years, as the case may be, by certain former employees of SDL Optics, Inc. Those individuals qualify for tax remission if the tax assessed on the employment benefit associated with shares acquired in 1999 or 2000 through the stock purchase plan for employees of SDL Optics, Inc. exceeds the total of the proceeds of disposition realized on the disposition of those shares and the market value of any of those shares held at the close of stock markets on December 29, 2006. The amount remitted is subject to certain conditions and adjustments.
The Order also remits, to certain former employees of SDL Optics, Inc., all or a portion of interest paid or payable on tax paid or payable on an employment benefit in respect of shares acquired in 1999 or 2000 through the stock purchase plan for employees of SDL Optics, Inc.
REMISSION ORDER – OUTLINE
What does this outline say?
What does the Whole Text of the Remission Order Mean?
A Commentary and Conjecture by Victor Drummond ©
November 2007
Below is a copy of the Taxable Benefit tax remission order as reported in the Canada Gazette on November 14th 2007. The description provided in the Gazette is sketchy and
leaves plenty of room for miss-interpretation by anyone less than a professional Income Tax Specialist.
DISCLAIMER
As your’s truly is not such a specialist kindly observe this disclaimer, i.e. that the interpretation given here is purely logical speculation and not necessarily a true statement of the real meaning of the subject Tax Remission Order.
Logical Assumption No. (1). (Rationale)
The Conservative Member of Parliament for the riding of Saanich, Gulf Islands, i.e.
The Honourable Gary Lunn -- is a tax professional and it is logical to assume that he drafted the original tax remission order specifically for the victims of the tax on potential income in his riding.
More specifically those persons formerly employed by the JDS Uniphase Corporation who acquired their employers shares via an Employee Shares Purchase Plan, (ESPP).
Mr. Lunn may, or may not, have been aware of the tens of thousands of other similar taxpayers – right across Canada -- who were unjustly taxed in exactly the same way.
From the way the remission order is worded I suspect he wasn’t aware of the scope of the problem. For if he was – then it would be logical to assume the tax remission order would not be worded for specific persons – even if they had could have hired him, as a group, to represent them.
Conclusion (1):- The Tax remission order was unintentionally written as to be to be totally unfair to all other Canadian Taxpayers who had been victimized the same
way via the same defective Tax legislation.
The remission order therefore – accidentally – became a violation of the Canadian
Charter of Rights and Freedoms Article 15(1) and the later updated Taxpayers Bill
of Rights Article 8.
Logical Assumption No. (2). (Rationale)
The Honourable Minister of National Revenue, Ms. Carol Skelton, (at that time), endorsed the remission order prepared by MP G. Lunn. The Honourable Ms. Skelton was likely also unaware of the scope of the problem at that time.
The endorsed document was then approved by the Right Honourable Michaelle Jean, Governor General of Canada which then became a codicil of Canada’s Income Tax Act. It is also highly doubtful that Her Excellency had any concept of the scope of the problem – but was well aware that the taxation of fictitious income was unjust, unfair, and not in the government’s or the public’s best interest.
Conclusion (2):- The tax remission order – that brought some semblance of “Fair Taxation” to those JDS Uniphase employee’s -- named in the order – actually became an amendment to the defective taxable benefits legislation more by accident than intent.
This conclusion is also strongly supported by the behaviour of the Conservative MP’s, -- including the PM and Minister’s of National Finance and National Revenue – all of who declined to acknowledge any and all appeals for details of the tax remission order – or in many cases to even admit it existed.
Logical Assumption (3), (Rationale)
From the sketchy details of the actual remission order it appears to operate in the following way:- Until the tech market correction -- that began in July of the year 2000 – Canadians who acquired employer’s shares -- via an ESPP, or Employer Shares Option (ESO) plans were exposed to being taxed on fictitious “Earned Income” just like the JDS Employees in British Columbia.
Although grossly unfair this policy did not produce wholesale hardship as long as the corporation shares kept rising in value. When the market correction hit – in mid-July of the year 2000 -- thousands of taxpayers found themselves levied with huge taxes on prodigious non-existent taxable benefits that were added to their Income Tax T4 documents. And thereby also reported to the Canada Revenue Agency – by the employer -- as “Earned Income”
Remission of taxes levied -- on the non-existent “Earned Income” -- can be achieved by cancelling the reported “taxable benefit” amount that was produced by the assumed “Fair Market Value”, (FMV) of all shares delivered, (exercised), to the employee in the years 1999 and 2000.
By allowing these taxpayers to report all ESPP/ESO shares exercised and/or liquidated in year 1999 and/or 2000 as being valued at the essentially zero value level they had -- as of December 29th in the year 2006 -- the inflated FMV they were initially taxed at in 1999 and/or 2000 is effectively wiped out.
Conclusion (3):- The $ numbers in Column 2 -- of Schedule 2 & 3 below -- I conclude – Is the “Taxable Benefit” amount produced by the FMV of the shares
Exercised by the employee named in column 1 and reported to the CRA,
by the employer as “Earned Income”.
(Some Employee names appear twice in column 1. It appears logical one
appearance is for a 1999 reported taxable benefit – and a second
appearance is for a year 2000 taxable benefit.)
By cancelling these reported taxable benefit amounts -- adjusted for the
persons base tax percent and the year(s) inclusion rate -- the excess taxes
are effectively removed.
Logical Assumption (4), (Rationale)
By allowing the taxpayer to declare their ESPP/ESO shares transactions for the year(s) 1999 and/or 2000 -- at the share value as of December 29th 2006 -- then every one of those taxpayers will be declaring a huge loss on their shares disposition.
As the original taxable benefits legislation blocked the application of “Capital Losses” against prior/succeeding taxes on those same shares when taxed as a “taxable benefit” a similar block is incorporated in this tax remission order.
Conclusion (4):-
The move towards truly fair taxation -- per the JDS tax remission order – falls a long way short of being 100% fair.
A real “Fair Taxation Policy” would be to correct the defective taxable benefit legislation to exclude intangible items -- such as volatile company stocks and corporation shares – from the taxable benefit classification altogether. These items are NOT NEAR CASH ITEMS and they have NO TANGIBLE QUALITIES. They can not be exchanged at a face value – as they have no FACE VALUE.
The government would still get all the revenue they are justly entitled to via the “Capital Gains” tax legislation – which at least can be applied uniformly.
How anyone can put any confidence, whatsoever, in a political organization -- that is claiming to provide “Fair Taxation” to all Canadians but allows the taxable benefits legislation to remain with a flaw that produces this bungled result – is way beyond me.
As it stands this defective taxable benefit legislation denies taxpayers their RIGHT to fair taxation – so it is therefore impossible to assure “All Canadians” will receive “Fair Taxation” no matter how many promises or pledges are announced – as long as this legislation continues in force.
A half a loaf is better than none – however – so let’s use the leverage we have to bring about as fair a tax result as these tools will allow us.
The 2007 updated “Fair Taxation Pledge” -- and related documents – are provide for dissatisfied Canadian Taxpayers to utilize one of the methods for asking the government to review their tax situation and grant them the same consideration as was given to the JDS Employees in Gary Lunn’s riding. See:- www.cra.gc.ca/fairness and/or read the prior posted article:- “Could Anyone Want for More”
I am advising the taxable benefit victim in my family -- to do the following:-
Call the government’s hand on this issue – and (b) to see just how quickly and how fairly they will treat his application, i.e. Complete and submit Form RC4288-e – Request for Taxpayer Relief.
This appears to be the form best suited to listing distant past. (more than 3 years), unjust taxation situations – and provides places to describe events that justify a tax review and tax remission -- at least equal to the deal provide to the JDS Employees of British Columbia.
If our governments word -- to provide “All Canadians Fair Taxation” according to their 2007 pledge and recent public announcements – is worth the time it takes to listen to them –
then every such taxable benefits victim -- who submits a similar request -- must receive equivalent remission of their unfair taxation as well.
The Canada Gazette report is displayed below.
Leave a comment if you have an opinion on this article and/or this issue.
Victor Drummond ©
===============================================
THE CANADA GAZETTE
Vol. 141, No. 23 — November 14, 2007
Registration
SI/2007-99 November 14, 2007
FINANCIAL ADMINISTRATION ACT
Certain Former Employees of SDL Optics, Inc. Remission Order
P.C. 2007-1635 October 25, 2007
Her Excellency the Governor General in Council, considering that it is in the public interest to do so, on the recommendation of the Minister of National Revenue, pursuant to subsection 23(2) (see footnote a) of the Financial Administration Act, hereby makes the annexed Certain Former Employees of SDL Optics, Inc. Remission Order.
CERTAIN FORMER EMPLOYEES OF SDL OPTICS, INC. REMISSION ORDER
INTERPRETATION
1. In this Order, "employment benefit" means a benefit under subsection 7(1) of the Income Tax Act in respect of the acquisition of shares, in 1999 and 2000, through the stock purchase plan for employees of SDL Optics, Inc.
REMISSION
2. Remission is granted to the taxpayers set out in column 1 of the schedule for the amount set out in column 2, in respect of the 1999 or 2000 taxation years, as the case may be, which represents,
(a) for those taxpayers set out in items 1 to 21 of the schedule, all or a portion of tax paid or payable under Part I of the Income Tax Act in respect of an employment benefit; or
(b) for those taxpayers set out in items 22 to 42 of the schedule, all or a portion of interest paid or payable under Part I of that Act, on tax paid or payable under that Part in respect of an employment benefit.
CONDITIONS
3. The remission set out in paragraph 2(a) is granted with one of the following conditions:
(a) in respect of those taxpayers set out in items 1, 4 to 11, 13, 15, and 17 to 19 of the schedule, that the taxpayer agrees to reduce the adjusted cost base of any shares held at the close of the stock markets on December 29, 2006 that were, or are identical to those, purshased in 1999 or 2000 through the stock purchase plan for employees of SDL Optics, Inc. by the amount set out in column 2 of the schedule, divided be the taxpayer's effective federal tax rate on the employment benefit; and
(b) in respect of those taxpayers set out in item 2, 3, 12, 14, 20 and 21 of the schedule, that the taxpayer agrees not to claim a deduction in respect of net capital losses, equal to one-half the amount set out in column 2 of the schedule, divided by the taxpayer's effective federal tax rate on the employment benefit.
SCHEDULE
(Sections 2 and 3)
Item Column 1
Taxpayer Column 2
Amount ($)
1. Sheri Colwell 1,430.92
2. Timothy Couch 6,551.90
3. Grant Coulombe 7,261.63
4. Rhonda Fleming 10,753.70
5. Vicki Harris 15,868.95
6. Hanna Kowalski 3,563.23
7. John Lauder 734.62
8. Howard Lo 14,285.42
9. Timothy Ying Tai Lo 30,675.50
10. Laura Meyer 134,847.28
11. Christie Michaud 2,587.67
12. Christine Mollerud 183,371.94
13. Anthony Ong 14,247.68
14. Mark Ord 2,718.19
15. Dennis Rasmussen 3,975.60
16. Dean Rheault 4,038.83
17. Cornelis Scheffer 672.63
18. Pamela Shwab 183.47
19. Peter Stern 5,945.87
20. Penny Taylor 20,202.28
21. Sandra Woodward 2,641.04
22. Victoria Barter 14,589.26
23. Allan Baxter 3,451.66
24. David Bengston 441.50
25. David Benson 860.22
26. Shannon Campbell 3,390.45
27. Timothy Couch 1,679.34
28. Grant Coulombe 2,733.15
29. Gloria Davenport 21,102.90
30. Connie Gethings 479.08
31. Don Hargreaves 12,706.01
32. Howard Lo 1,003.51
33. Laura Meyer 52,089.41
34. Tracy Mills 47,108.37
35. Christine Mollerud 179,260.64
36. Carina Paredes 3,287.87
37. Martha Perdomo 543.98
38. Dean Rheault 1,584.06
39. Penny Taylor 28.91
40. Richard Van Acken 51.82
41. Joseph Wood 14,330.76
42. Sandra Woodward 3.30
EXPLANATORY NOTE
(This note is not part of the Order.)
The Order remits all or a portion of federal income tax paid or payable in respect of the 1999 or 2000 taxation years, as the case may be, by certain former employees of SDL Optics, Inc. Those individuals qualify for tax remission if the tax assessed on the employment benefit associated with shares acquired in 1999 or 2000 through the stock purchase plan for employees of SDL Optics, Inc. exceeds the total of the proceeds of disposition realized on the disposition of those shares and the market value of any of those shares held at the close of stock markets on December 29, 2006. The amount remitted is subject to certain conditions and adjustments.
The Order also remits, to certain former employees of SDL Optics, Inc., all or a portion of interest paid or payable on tax paid or payable on an employment benefit in respect of shares acquired in 1999 or 2000 through the stock purchase plan for employees of SDL Optics, Inc.
Wednesday, November 14, 2007
What was said..
IS THERE REAL REASON FOR HOPE THIS TIME?
A commentary on
Prime Minister Right Honourable Stephen Harper’s
Address to the Toronto Canadian Club November 8th 2007
What he said and what did he mean?
Victor Drummond ©
In November 2006 Canadian victims of the taxable benefits rip-off were thrown a straw of hope when conservative MP Gary Lunn -- for the riding of Saanich Gulf Islands in British Columbia --proudly announced that a group of JDS Employees had been granted a remission of their unjustified taxes.
He further proudly declared – on that occasion:- “It took a change in government to get someone to listen, but the prime minister has come through and delivered tax relief,” said Lunn
It’s not in the interest of the government to tax people on money they never saw.”
Unfortunately for Mr. Lunn -- and all other Canadians taxed on money they never saw – the fair tax relief began -- and ended right then and there.
Appeal after appeal -- by similar tax victims for identical tax relief -- were either entirely totally ignored – or a polite -- but totally fruitless reply was returned to the appellants.
Requests for an explanation -- of the unequal tax situation -- were equally futile.
No explanation of the unfair exclusion -- or details of the deal made with the BC, JDS victims -- has been forthcoming to date.
(Update after posting this article:- Some details of the deal made with the British Columbia JDS taxable benefits victims has now been published in the Canada Gazette
see url:- http://canadagazette.gc.ca/partII/2007/20071114/html/si99-e.html)
The conservative government is holding fast to their claim:- to bring “Fair taxation” to all Canadians -- by upgrading bulletins and pamphlets in support of their proclamation of “A Fair taxation Pledge”.
So far this wonderful “Fair Taxation Pledge” has done absolutely nothing to restore the RIGHT of “All Canadians” to fair and equal taxation.
There has been no material change made to the fundamentally defective taxable benefit legislation and consequently the victims taxed on fictitious “Income” still have no RIGHTS by which to recover their stolen property.
They are still waiting for equal treatment under the law – per The Canadian Charter of Rights and Freedoms, article 15 (1) and/or equal treatment per the new Taxpayers Bill of Rights, article (8).
So what did the Honourable Stephen Harper actually say in his address to the Toronto Canadian Club members on Thursday November 8th 2007?
Well among other things:-
“Harper promised Thursday that to maintain and enhance Canada’s prosperity over the long term, his Conservative government would develop “one of the most competitive and attractive tax environments on the planet.”
“Federal taxes will fall to the level they were at in the last year (1963) of the Diefenbaker government – before the policies of the late 1960’s before Trudeau – back to the level in nearly half a century,” he said.
The government still has the flexibility to help the forest industry or to allow capital write-offs for manufacturers, he said.
So that in part is what the Most Honourable Stephen Harper said. Now what did he mean?
While restoring the Federal Taxes to the level they were in the last year of the Diefenbaker government is Stephen Harper also prepared to restore the Taxable Benefits legislation and apply the same tax policies, (specifically taxable benefit legislation), to what they were in that same era?
I am certain John Diefenbaker would never have condoned taxing fictitious “Earned Income”. He had more integrity than that.
If the (Harper) government still has the flexibility to help the forest industry – and/or to allow capital write-offs for manufacturers – do they not also have the power to give truly fair taxation to all Canadians – and an equal – No -- not only equal – but based upon the updated “Pledge of Fair Taxation” -- even a greater obligation to do so?
So Mr. Prime Minister put some action where your words are and give real “Equal and Fair Taxation to All Canadians” – and give us truly -- the most attractive tax environment on the planet.
A NEAR CASH fix is not going to cut it. Show us the restoration of our RIGHT to fair taxation and give us a solid reason to vote you and your party back into office with a majority government.
See you at the voting polls – next federal election.
Victor Drummond ©
A commentary on
Prime Minister Right Honourable Stephen Harper’s
Address to the Toronto Canadian Club November 8th 2007
What he said and what did he mean?
Victor Drummond ©
In November 2006 Canadian victims of the taxable benefits rip-off were thrown a straw of hope when conservative MP Gary Lunn -- for the riding of Saanich Gulf Islands in British Columbia --proudly announced that a group of JDS Employees had been granted a remission of their unjustified taxes.
He further proudly declared – on that occasion:- “It took a change in government to get someone to listen, but the prime minister has come through and delivered tax relief,” said Lunn
It’s not in the interest of the government to tax people on money they never saw.”
Unfortunately for Mr. Lunn -- and all other Canadians taxed on money they never saw – the fair tax relief began -- and ended right then and there.
Appeal after appeal -- by similar tax victims for identical tax relief -- were either entirely totally ignored – or a polite -- but totally fruitless reply was returned to the appellants.
Requests for an explanation -- of the unequal tax situation -- were equally futile.
No explanation of the unfair exclusion -- or details of the deal made with the BC, JDS victims -- has been forthcoming to date.
(Update after posting this article:- Some details of the deal made with the British Columbia JDS taxable benefits victims has now been published in the Canada Gazette
see url:- http://canadagazette.gc.ca/partII/2007/20071114/html/si99-e.html)
The conservative government is holding fast to their claim:- to bring “Fair taxation” to all Canadians -- by upgrading bulletins and pamphlets in support of their proclamation of “A Fair taxation Pledge”.
So far this wonderful “Fair Taxation Pledge” has done absolutely nothing to restore the RIGHT of “All Canadians” to fair and equal taxation.
There has been no material change made to the fundamentally defective taxable benefit legislation and consequently the victims taxed on fictitious “Income” still have no RIGHTS by which to recover their stolen property.
They are still waiting for equal treatment under the law – per The Canadian Charter of Rights and Freedoms, article 15 (1) and/or equal treatment per the new Taxpayers Bill of Rights, article (8).
So what did the Honourable Stephen Harper actually say in his address to the Toronto Canadian Club members on Thursday November 8th 2007?
Well among other things:-
“Harper promised Thursday that to maintain and enhance Canada’s prosperity over the long term, his Conservative government would develop “one of the most competitive and attractive tax environments on the planet.”
“Federal taxes will fall to the level they were at in the last year (1963) of the Diefenbaker government – before the policies of the late 1960’s before Trudeau – back to the level in nearly half a century,” he said.
The government still has the flexibility to help the forest industry or to allow capital write-offs for manufacturers, he said.
So that in part is what the Most Honourable Stephen Harper said. Now what did he mean?
While restoring the Federal Taxes to the level they were in the last year of the Diefenbaker government is Stephen Harper also prepared to restore the Taxable Benefits legislation and apply the same tax policies, (specifically taxable benefit legislation), to what they were in that same era?
I am certain John Diefenbaker would never have condoned taxing fictitious “Earned Income”. He had more integrity than that.
If the (Harper) government still has the flexibility to help the forest industry – and/or to allow capital write-offs for manufacturers – do they not also have the power to give truly fair taxation to all Canadians – and an equal – No -- not only equal – but based upon the updated “Pledge of Fair Taxation” -- even a greater obligation to do so?
So Mr. Prime Minister put some action where your words are and give real “Equal and Fair Taxation to All Canadians” – and give us truly -- the most attractive tax environment on the planet.
A NEAR CASH fix is not going to cut it. Show us the restoration of our RIGHT to fair taxation and give us a solid reason to vote you and your party back into office with a majority government.
See you at the voting polls – next federal election.
Victor Drummond ©
Sunday, November 11, 2007
I Remember -- with
CANADA REMEMBERS – AND SO DO I
A commentary on the Irony of the 2007
Remembrance Day Ceremony.
By Victor Drummond ©
On November 11th 2007 I tuned in Television Channel 41, (Global TV), Toronto and watched/listened to the program honouring the veterans of wars that Canadians had participated in from 1914 to the present time
The ceremony was a very touching tribute to those who served in Canada’s military ventures in “The War to End All Wars” (WWI). And then in WWII and the Korean War and now in the Middle East conflict, and in multiple Peace Keeping assignments.
I cried with the families of those who had lost Fathers. Brothers. Sisters -- for they are paying the real cost of Canada’s efforts to bring an end to war and a peaceful social order to war-torn areas of this world. There are millions of people now reaping the benefit of their sacrifice.
And the world now does well to remember and honour them.
But I also remember my son – who graduated from University in 1991 with a Masters degree and believed in the unlimited opportunity for achievement he looked forward to in his native homeland.
He found work opportunities – one after another – each offering more remuneration than the last until he finally accepted a position with the JDS Fitel/JDS Uniphase Corporation of Canada.
His advancement with JDS was fast and before long he was accepted into a special group of employees who were given the opportunity to participate in a series of Employee Share Purchase Plans, (ESPP’s).
Feeling honoured to be so recognized he signed on to purchase ESPP shares, via payroll deduction, in a series of consecutive plans.
By 1999 he had paper holdings ostensibly worth more than a million dollars.
The Canada Revenue Agency, (CRA) also received notification of his potential gain via the employer’s requirement to report the “Fair Market Value”, (FMV) of all the ESPP shares delivered to him.
And according to the defective “taxable benefit” legislation -- this almost income was reported to the CRA as “Earned Income”. And taxed accordingly.
This phantom “Earned Income” inflated his taxes to levels several times greater than his real gross salary – and the only way he could possibly pay this tax levy was to sell enough of his share holdings to cover the taxes levied.
This strategy – although unfair – did not produce any real hardship UNTIL the year 2000 – when the tech market correction struck.
Then in July 2000 JDS shares rapidly dropped from a high of over $1,400 each to less than $40.00 each in a matter of weeks. My son’s paper holdings dropped in potential value of over $1,000,000 to a fraction of his tax levy for that year.
He was not even allowed to sell the ESPP shares he had left -- as that would have prevented him from utilizing the “generous?” provision of deferring some of these unjustified taxes via the use of form T1212. (A tax referral unto death.)
Consequently he – borrowed as much money as he could from my wife and I.
He wiped out his savings.
He remortgaged his home.
He maxed out his credit cards.
And deferred the balance of this tax extortion via the T1212 option.
What had happened to every Canadians RIGHT to honest and fair taxation?
Appeals for fair taxation – to the government in power in 2001 – fell on deaf ears.
Appeals for fair taxation – to our present politicians hasn’t faired any better – so far.
The “ASSUMPTION” made by the government of the day being:- “If you failed to sell your ESPP shares at the time they came under your control, (exercised), THEN you were making a conscious decision to play the markets -- AT YOUR OWN RISK.
AND WE, (CRA), HAVE THE RIGHT TO TAX YOU ON ANY GAINS YOU COULD HAVE MADE – AND THE RIGHT TO DENY YOU RECOVERY -- OF ANY CAPITAL LOSSES YOU ACTUALLY SUFFERED -- AGAINST THOSE SO CALLED TAXABLE BENEFIT GAINS.
(REALLY?)
That ASSUMPTION was not even true in many instances. There are documented cases where the ESPP/ESO shareholder was not allowed, and/or did not have the opportunity, to sell their shares at the time they were exercised.
The CRA should never have been permitted to levy taxes on unrealized “Income” in the first place. And doubly prevented from taxing fictitious profits on the basis of an ASSUMPTION.
That is not the Canada I took up arms to defend.
So my tears on this veterans day are not only for the members of our military – who now live in harms way – and not only for those who lost their lives to make the world a better place – they are also for those who have been financially decimated by an evil and unjust taxation system.
An unfair, unjust, unreasonable tax penalty -- on our taxable benefit victims -- that our present politicians seem willing to live with.
Victor Drummond ©
(with poppy proudly in lapel)
A commentary on the Irony of the 2007
Remembrance Day Ceremony.
By Victor Drummond ©
On November 11th 2007 I tuned in Television Channel 41, (Global TV), Toronto and watched/listened to the program honouring the veterans of wars that Canadians had participated in from 1914 to the present time
The ceremony was a very touching tribute to those who served in Canada’s military ventures in “The War to End All Wars” (WWI). And then in WWII and the Korean War and now in the Middle East conflict, and in multiple Peace Keeping assignments.
I cried with the families of those who had lost Fathers. Brothers. Sisters -- for they are paying the real cost of Canada’s efforts to bring an end to war and a peaceful social order to war-torn areas of this world. There are millions of people now reaping the benefit of their sacrifice.
And the world now does well to remember and honour them.
But I also remember my son – who graduated from University in 1991 with a Masters degree and believed in the unlimited opportunity for achievement he looked forward to in his native homeland.
He found work opportunities – one after another – each offering more remuneration than the last until he finally accepted a position with the JDS Fitel/JDS Uniphase Corporation of Canada.
His advancement with JDS was fast and before long he was accepted into a special group of employees who were given the opportunity to participate in a series of Employee Share Purchase Plans, (ESPP’s).
Feeling honoured to be so recognized he signed on to purchase ESPP shares, via payroll deduction, in a series of consecutive plans.
By 1999 he had paper holdings ostensibly worth more than a million dollars.
The Canada Revenue Agency, (CRA) also received notification of his potential gain via the employer’s requirement to report the “Fair Market Value”, (FMV) of all the ESPP shares delivered to him.
And according to the defective “taxable benefit” legislation -- this almost income was reported to the CRA as “Earned Income”. And taxed accordingly.
This phantom “Earned Income” inflated his taxes to levels several times greater than his real gross salary – and the only way he could possibly pay this tax levy was to sell enough of his share holdings to cover the taxes levied.
This strategy – although unfair – did not produce any real hardship UNTIL the year 2000 – when the tech market correction struck.
Then in July 2000 JDS shares rapidly dropped from a high of over $1,400 each to less than $40.00 each in a matter of weeks. My son’s paper holdings dropped in potential value of over $1,000,000 to a fraction of his tax levy for that year.
He was not even allowed to sell the ESPP shares he had left -- as that would have prevented him from utilizing the “generous?” provision of deferring some of these unjustified taxes via the use of form T1212. (A tax referral unto death.)
Consequently he – borrowed as much money as he could from my wife and I.
He wiped out his savings.
He remortgaged his home.
He maxed out his credit cards.
And deferred the balance of this tax extortion via the T1212 option.
What had happened to every Canadians RIGHT to honest and fair taxation?
Appeals for fair taxation – to the government in power in 2001 – fell on deaf ears.
Appeals for fair taxation – to our present politicians hasn’t faired any better – so far.
The “ASSUMPTION” made by the government of the day being:- “If you failed to sell your ESPP shares at the time they came under your control, (exercised), THEN you were making a conscious decision to play the markets -- AT YOUR OWN RISK.
AND WE, (CRA), HAVE THE RIGHT TO TAX YOU ON ANY GAINS YOU COULD HAVE MADE – AND THE RIGHT TO DENY YOU RECOVERY -- OF ANY CAPITAL LOSSES YOU ACTUALLY SUFFERED -- AGAINST THOSE SO CALLED TAXABLE BENEFIT GAINS.
(REALLY?)
That ASSUMPTION was not even true in many instances. There are documented cases where the ESPP/ESO shareholder was not allowed, and/or did not have the opportunity, to sell their shares at the time they were exercised.
The CRA should never have been permitted to levy taxes on unrealized “Income” in the first place. And doubly prevented from taxing fictitious profits on the basis of an ASSUMPTION.
That is not the Canada I took up arms to defend.
So my tears on this veterans day are not only for the members of our military – who now live in harms way – and not only for those who lost their lives to make the world a better place – they are also for those who have been financially decimated by an evil and unjust taxation system.
An unfair, unjust, unreasonable tax penalty -- on our taxable benefit victims -- that our present politicians seem willing to live with.
Victor Drummond ©
(with poppy proudly in lapel)
Tuesday, November 6, 2007
Veterans week 2007..
Ubique Fas et Gloria Ducunt
A commentary on the level of Integrity and Credibility
of Canada’s Recent and Current Politicians
By Victor Drummond ©
Veteran’s Week – November 5-11, 2007
Those familiar with Canadian Military mottos and slogans will immediately recognize the branch of the military your’s truly was a member of in the 1940’s.
For the benefit of those who are not familiar with Latin -- or Military Motto’s -- the title of this article translates into:- “Whither Right and Glory Lead.” And at the time I joined the Canadian military it was loosely translated to me as:- “Everywhere Honour and Glory Lead.”
It was a motto we wore on our badges with pride – and the neatly woven white lanyard which graced our battledress uniforms gave us a feeling of pride and distinction.
Our Officers and NCO’s did an excellent job of developing esprit de corps and convincing us that we were the good guys in that WWII conflict with the Nazi war machine.
And we had solid reason to believe them.
Had anyone told me -- back then -- they had been levied “Income Taxes on a fictitious “Earned Income” and these same unjustified taxes forced them to borrow money, and/or re-mortgage their home, in order to pay them, and/or they said the government had obliged them to carry a deferred tax burden -- on this imaginary income -- until paid.
I would have promptly challenged them.
I would have asked them which third-world country they came from? If they replied Canada -- I would have told them they must be joking. Such an unconscionable series of events would never – in a million years -- be condoned by the government I was defending. (Actually it only took about 50 years -- but it should have taken a million years or so)
But then again I am sure such things never happened -- in my Canada -- back in those days.
What did Happen? Did we lose WWII and no one informed me?
Taxing non-existent “Earned Income” sure sounds like Nazi style taxation to me.
Regardless of which translation you prefer -- it comes down to:- As members of Canada’s military -- We individually were taking the path of:- going where “Honour/Right” and “Glory/Praise” might take us. And we were proud to do so.
Back then I am convinced no one thought -- for one moment -- that the military was the only part of our government that held fast to such Honourable and Praiseworthy ideals.
I for one believed -- at that time -- it was a quality that permeated the entire Canadian social and administrative structure -- and then merely reflected in our military motto.
In spite of the usual political wrangling -- I -- and most of my comrades -- held a rather high opinion of the integrity, honesty and credibility of our political leaders.
So what has happened to change that opinion?
Unjust, unfair, unequal taxation – and the general political condoning of this travesty -- is the main reason in my case. Plus adding insult to injury by proclaiming a “Pledge of Fair Taxation” -- while this travesty of unfairness is still kept in operation.
Where is the “Right/Honour/Justice” in levying “Income Tax” on non-existent “Income”?
Where is the “Right/Honour/Fairness” in forcing taxpayers to borrow money, and/or mortgage their homes, and decimating their children’s inheritance -- to pay these unjustified taxes?
Where is the “Praise/Glory” in allowing this travesty of injustice to continue – and ignoring
all appeals for “Fair and “Equal Treatment”?
Where is “Equal Treatment” under the law – when some taxpayers are given remission of these unjustified taxes while other similar taxpayers are denied the same consideration. They are not even given a reason for being excluded from the same benefit?
Offering a clear and plain language explanation -- of a defective taxable benefit law – as a response to an appeal for “Fair” taxation is NOT FAIR AND EQUAL TREATMENT UNDER THE LAW – it is an insult to an average person’s intelligence.
Why not be fair and correct the defective legislation – and truly apply “Fair” taxation to all Canadians? Are our politicians having a problem with definitions of the word “Fair”?
(Take my word for it:- It doesn’t only mean blonde and blue-eyed.)
We veterans were courageous enough to fight for our Canada when the need arose.
What are you voters and our politicians now prepared to do for us about this tax rip-off?
If you know – then please tell me -- for I have not been able to find one speck of:- “Right or Honour” or “Praiseworthy conduct or Glory”. Neither -- in the defective tax legislation that produces such an unfair result – nor in those now in government who have the power to correct this problem -- but prefer instead to remain silent and allow it to continue.
How many other veterans have family members that were financially decimated and are still burdened with deferred taxes that were levied on fictitious “Earned Incomes”?
Can you – our politicians now face these tax victims today -- with a poppy in your lapel?
Only a genuine hypocrite could.
What credit is it to those who would vote these unworthy politicians into office without a commitment -- from any of them -- to correct this injustice?
The least you -- the reader -- can do is send a copy of this article to every Canadian of voting age you know and a copy to your MP – with the message:- “Commit to fixing this issue in a timely manner – or look elsewhere for this vote in the coming federal election.
Victor Drummond ©
(with poppy proudly in lapel)
Sunday, November 4, 2007
Actions Speak louder..
ACTION VERSUS WORDS
A Literal Translation of the Finance Minister’s
Jan 30th 2007 Fair Taxation Speech
By Victor Drummond ©
November 2007
On January 30th 2007 the Honourable Jim Flaherty, Minister of Finance addressed the House of Commons and made the following statement:-
“Make no mistake, the decision that was taken on October 31st, (2006), is all about fairness—fairness in our tax system, fairness for hard-working Canadian taxpayers and their families, fairness for seniors, for business and other levels of government," said Minister Flaherty. "I am not prepared to sacrifice the interests of millions of hard-working Canadians who pay their taxes and play by the rules so that a select group of special interests can enjoy a tax holiday."
Now we all know that words used by a politician often have different meanings than the common dictionary definitions or the generally accepted meaning when the same word(s) are used in everyday conversation.
The only way a politician’s message can be truly comprehended -- by the average person -- is by the action that the politician actually takes to give substance to his commitments.
Judging from the action taken by the Hon Jim Flaherty – on the issue of “Fair Taxation” – from January 30th 2007 to his latest commitment to amend tax levels – on October 30th 2007 what he actually said on January 30th 2007 was:-
“Make no mistake, the decision that was taken on October 31st, (2006), is all about fairness – fairness in most of our tax system, (excluding taxable benefits legislation), fairness for hard-working Canadian Taxpayers and their families, (except those who participated in employer’s Employee Shares Purchase Plans), fairness for seniors, for business and other levels of government,” said Mr. Flaherty.” I am not prepared to sacrifice the interests of millions of hard-working Canadians who pay their taxes and play by the rules so that a select group of special interests can enjoy a tax holiday. “Also I am not prepared to
amend the defective taxable benefit legislation so that a few hundred thousand hard-working Canadians who pay their taxes and play by the rules may join those receiving the benefits of “Fair” Taxation.”
On October 30th 2007 the Hon Jim Flaherty came through for the average Canadian Taxpayer in a big way. Raising the basic Income Tax exemption level, dropping the GST by a whole percentage point and giving business enterprise the lowest tax rate in the major group of industrialized nations.
Why are the taxable benefit victims being totally ignored?
Does the Minister of Finance actually believe it is fair to tax Canadians on “Income” that never happened?
Is it not Fair enough to reserve taxing investors and speculators on real gains -- via the Capital Gains Tax – if they are ever lucky enough to have any?
Does the Minister of Finance actually believe it is fair to tax Canadians differently based solely on the means by which they acquire corporation shares? And yet allow stolen shares to be taxed as a “Capital Gain” – if the thief is honest enough to even report the theft. Isn’t something wrong here – do you think?
For example if I buy shares in my employer’s corporation from a regular stock broker I am only taxed on the capital gains I actually make when I sell the shares. No problem here --that is Fair.
But if I buy those same shares from my employer -- by way of an Employee Shares Purchase Plan -- then I am taxed on any potential gain I might have made – even when I actually lose money on the deal. That is:- DEFINITELY NOT FAIR.
In this latter instance the tax levied is the same as if I had sold my shares on the day I took control of them. That tax applies whether or not I actually sell the shares and whether or not I ever realize a cent of return from those shares. How is that for “Fair Taxation”? Totally unfair – don’t you think?
Can anyone believe that this tax set up is “Fair”?
If they can believe it is -- then I do not want that person guiding the Canadian Government on my behalf.
Do you want someone with such a distorted comprehension of words such as “Fair”, “Just”, “Honest”, “Integrity” “Equality” “Credibility” -- managing your government’s affairs? If “yes” then do the rest of us a favour and stay home on federal election day.
Judge the claims and promises made to you -- during the upcoming Federal Election – and translate each promise according to the speaker’s track record and actions taken related to prior promises made.
Make your vote count for true credibility, honesty, fairness and integrity. Canada will thank you, I will thank you and all Canadians will be much better off for your vote.
Victor Drummond ©
Wednesday, October 31, 2007
Trick or ....
TRICK OR TREAT?
A Commentary on calling the government’s hand
According to the 2007 Fair Tax Pledge and
The Taxpayers New Bill of Rights.
By Victor Drummond ©
October 31 2007
So Halloween has arrived once again and this time the Canadian Government has some very nice treats in store for those abused taxable benefits victims. You know – the ones that have been levied enormous taxes on a super inflated non-existent “Earned Incomes”.
A year ago a select group of similar victims, JDS Uniphase employees only, were granted some form of tax relief -- which was no doubt a practice run for this years great treat for “The Rest of Us?”
The Honourable Jim Flaherty, Canada’s Minister of Finance, has laid out the “Welcome” mat for all remaining such victims -- of the defective tax legislation – to come Knocking on the Canada Revenue Agency door and yell:- “SHELL OUT”.
How else could anyone interpret statements such as:-
(1) On January 30th 2007 the Honourable Jim Flaherty, Minister of Finance addressed the House of Commons and made the following statement:-
“Make no mistake, the decision that was taken on October 31st, (2006), is all about fairness—fairness in our tax system, fairness for hard-working Canadian taxpayers and their families, fairness for seniors, for business and other levels of government," said Minister Flaherty. "I am not prepared to sacrifice the interests of millions of hard-working Canadians who pay their taxes and play by the rules so that a select group of special interests can enjoy a tax holiday."
AND
(2) A bit later, June 4 2007, the Government updated their (Tax),“Fairness Pledge”, to all Canadians which reads in part:
Our Fairness Pledge
• Our fairness commitment is based on service that is responsive, consistent, and impartial.
• Our actions must reflect objective yet considerate application of the law.
• We recognize that taxpayers have specific needs and concerns.
Information
• We will give taxpayers information that is accurate and understandable. We will explain the laws in language that is plain and clear. We will provide all our services in English and French and, in some cases, other languages too.
There is no doubt about it – the current Conservative Government is planning a great surprise for all Canadians -- who have been unfairly taxed in the past decade or so.
At the very least they will all receive a clear – easy to understand -- explanation of the defective Legislation that gave the CRA the right to tax their non-existent “Income” in the first place.
Come to think about it – a clear, easy to understand, explanation of this flawed legislation -- in the language of our choice -- is not exactly the response we were looking for.
That response sounds more like a TRICK than a Treat.
How about honouring every Canadian’s RIGHT to TRULY “Fair Taxation” by correcting the defective taxable benefit legislation? Then you can explain the law to us in clear, easy to understand, language.
Say for example introducing another government Bill -- similar to Bill C-10 -- By the Hon. James Michael (Jim) Flaherty -- and this time make the Bill Summary to read:- “This enactment amends the Canada Income Tax Act to provide for exclusion of intangible equities, such as Corporation Shares and Company Stocks from the taxable benefit classification.” “Provision is also made for taxpayers who have been levied taxes on non-existent Earned Income to claim all related stock and/or share equity transactions as Capital transactions with their taxes adjusted accordingly.
And then publicizing the restoration of that RIGHT so that all victims are made aware of the opportunity they now have to a really honest and fair tax levy.
This would give substance to the above, 2007, Fair Taxation Pledge, and to the new Tax Ombudsman, and to the new Taxpayers Bill of Rights, and to your statements (1) and (2) above.
Also it would give all Canadians the (2007) Halloween Treat they deserve – and have been denied -- for so long a time.
With the dozens of billions of surplus taxes dollars you have been reporting recently you can not say the government can not afford to be “Fair” in this situation. Do the honourable thing this time.
See you at the voting polls for the next Federal Election. Then we can all play Trick or Treat.
Victor Drummond ©
A Commentary on calling the government’s hand
According to the 2007 Fair Tax Pledge and
The Taxpayers New Bill of Rights.
By Victor Drummond ©
October 31 2007
So Halloween has arrived once again and this time the Canadian Government has some very nice treats in store for those abused taxable benefits victims. You know – the ones that have been levied enormous taxes on a super inflated non-existent “Earned Incomes”.
A year ago a select group of similar victims, JDS Uniphase employees only, were granted some form of tax relief -- which was no doubt a practice run for this years great treat for “The Rest of Us?”
The Honourable Jim Flaherty, Canada’s Minister of Finance, has laid out the “Welcome” mat for all remaining such victims -- of the defective tax legislation – to come Knocking on the Canada Revenue Agency door and yell:- “SHELL OUT”.
How else could anyone interpret statements such as:-
(1) On January 30th 2007 the Honourable Jim Flaherty, Minister of Finance addressed the House of Commons and made the following statement:-
“Make no mistake, the decision that was taken on October 31st, (2006), is all about fairness—fairness in our tax system, fairness for hard-working Canadian taxpayers and their families, fairness for seniors, for business and other levels of government," said Minister Flaherty. "I am not prepared to sacrifice the interests of millions of hard-working Canadians who pay their taxes and play by the rules so that a select group of special interests can enjoy a tax holiday."
AND
(2) A bit later, June 4 2007, the Government updated their (Tax),“Fairness Pledge”, to all Canadians which reads in part:
Our Fairness Pledge
• Our fairness commitment is based on service that is responsive, consistent, and impartial.
• Our actions must reflect objective yet considerate application of the law.
• We recognize that taxpayers have specific needs and concerns.
Information
• We will give taxpayers information that is accurate and understandable. We will explain the laws in language that is plain and clear. We will provide all our services in English and French and, in some cases, other languages too.
There is no doubt about it – the current Conservative Government is planning a great surprise for all Canadians -- who have been unfairly taxed in the past decade or so.
At the very least they will all receive a clear – easy to understand -- explanation of the defective Legislation that gave the CRA the right to tax their non-existent “Income” in the first place.
Come to think about it – a clear, easy to understand, explanation of this flawed legislation -- in the language of our choice -- is not exactly the response we were looking for.
That response sounds more like a TRICK than a Treat.
How about honouring every Canadian’s RIGHT to TRULY “Fair Taxation” by correcting the defective taxable benefit legislation? Then you can explain the law to us in clear, easy to understand, language.
Say for example introducing another government Bill -- similar to Bill C-10 -- By the Hon. James Michael (Jim) Flaherty -- and this time make the Bill Summary to read:- “This enactment amends the Canada Income Tax Act to provide for exclusion of intangible equities, such as Corporation Shares and Company Stocks from the taxable benefit classification.” “Provision is also made for taxpayers who have been levied taxes on non-existent Earned Income to claim all related stock and/or share equity transactions as Capital transactions with their taxes adjusted accordingly.
And then publicizing the restoration of that RIGHT so that all victims are made aware of the opportunity they now have to a really honest and fair tax levy.
This would give substance to the above, 2007, Fair Taxation Pledge, and to the new Tax Ombudsman, and to the new Taxpayers Bill of Rights, and to your statements (1) and (2) above.
Also it would give all Canadians the (2007) Halloween Treat they deserve – and have been denied -- for so long a time.
With the dozens of billions of surplus taxes dollars you have been reporting recently you can not say the government can not afford to be “Fair” in this situation. Do the honourable thing this time.
See you at the voting polls for the next Federal Election. Then we can all play Trick or Treat.
Victor Drummond ©
Tuesday, October 30, 2007
Copyright Notice.. to all public media editors..
COPYRIGHT NOTICE
Issued September 7, 2007
Updated October 30, 2007
By Victor Drummond ©
Be advised hereby that as of this date --all bloggers, publishers of news media and/or business papers and/or magazines, including Readers Digest, are granted free copyright privileges to any article I post to this blog page, (buyerbeware—caveatemptor), both past and future.
As I am the only person with administrative access to this blog page a copy of this notice is the equivalent of a signed authorization.
While those who utilize this material may either support the intent of these articles – or voice opposing views I -- and those who have been victimized by our defective “Taxable Benefits” laws would greatly appreciate your support.
Victor Drummond ©
Issued September 7, 2007
Updated October 30, 2007
By Victor Drummond ©
Be advised hereby that as of this date --all bloggers, publishers of news media and/or business papers and/or magazines, including Readers Digest, are granted free copyright privileges to any article I post to this blog page, (buyerbeware—caveatemptor), both past and future.
As I am the only person with administrative access to this blog page a copy of this notice is the equivalent of a signed authorization.
While those who utilize this material may either support the intent of these articles – or voice opposing views I -- and those who have been victimized by our defective “Taxable Benefits” laws would greatly appreciate your support.
Victor Drummond ©
Sunday, October 28, 2007
A Tax Fairness Pledge ...
WHEN IS FAIR FARE?
A Commentary on the Canadian Conservative
Government’s 2007 Fair Tax Policy and Pledge.
By Victor Drummond ©
October 2007
On January 30th 2007 the Honourable Jim Flaherty, Minister of Finance addressed the House of Commons and made the following statement:-
“Make no mistake, the decision that was taken on October 31st is all about fairness—fairness in our tax system, fairness for hard-working Canadian taxpayers and their families, fairness for seniors, for business and other levels of government," said Minister Flaherty. "I am not prepared to sacrifice the interests of millions of hard-working Canadians who pay their taxes and play by the rules so that a select group of special interests can enjoy a tax holiday."
A bit later, June 4 2007, the Government updated their (Tax),“Fairness Pledge”, to all Canadians which reads in part:
Our Fairness Pledge
• Our fairness commitment is based on service that is responsive, consistent, and impartial.
• Our actions must reflect objective yet considerate application of the law.
•We recognize that taxpayers have specific needs and concerns.
Information
• We will give taxpayers information that is accurate and understandable. We will explain the laws in language that is plain and clear. We will provide all our services in English and French and, in some cases, other languages too.
The problem with this set up being the reference to:- reflecting upon an: “objective yet considerate application of the law.”
What does this statement translate into?
Then in the following paragraph is the second ill defined statement:- “We will explain the laws in language that is plain and clear.”
What does this statement translate into?
If “Fair Taxation” -- according to the foregoing “Fairness Pledge” – translates into having the defective, unfair taxable benefit legislation -- explained in plain and clear terms – Fair becomes Fare -- NOT FAIR. In other words:- Pay up --- ---- --.
Then so far that appears to be about as “Fair” as this government is prepared to go.
As long as the defective taxable benefit legislation remains on the books there is NO POSSIBLE WAY TO APPLY THAT LAW FAIRLY.
If some victims receive extra CONSIDERATION -- and have their taxable benefit taxes reduced or dismissed entirely -- how does that become “Fair” to all the other similar victims?
OBVIOUSLY IT DOESN’T.
Until the taxable benefit legislation is amended to exclude corporation shares -- no matter how acquired -- from the taxable benefit classification -- any pretence of applying “Fair Taxation” to all Canadians is a mere charade and an absolute farce.
Honourable Jim Flaherty -- Give your taxation “Fairness Pledge” some substance.
Amend the taxable benefit legislation to exclude corporation shares and company stocks as “taxable benefits” and have these equities taxed according to the really fair “Capital Gains/Losses” legislation.
REAL TAX ON REAL INCOME. That legislation IS universally Fair Taxation for all Canadians.
Until that is done the taxable benefit victims have no rights and also can not be given a fair deal.
All the fairness they can beg for is:- SPECIAL CONSIDERATION – with hat in hand.
There is absolutely no justification for doing half a job – correct the legislation and allow it’s past victims to apply for genuine fairness in their “Income” taxes.
Then if past victims decide to forego their RIGHTS to fair taxation they may safely be assumed to have made a conscious decision not to reclaim their rightful tax adjustment and are therefore being taxed fairly.
See you at the Federal Election Polls.
Victor Drummond ©
A Commentary on the Canadian Conservative
Government’s 2007 Fair Tax Policy and Pledge.
By Victor Drummond ©
October 2007
On January 30th 2007 the Honourable Jim Flaherty, Minister of Finance addressed the House of Commons and made the following statement:-
“Make no mistake, the decision that was taken on October 31st is all about fairness—fairness in our tax system, fairness for hard-working Canadian taxpayers and their families, fairness for seniors, for business and other levels of government," said Minister Flaherty. "I am not prepared to sacrifice the interests of millions of hard-working Canadians who pay their taxes and play by the rules so that a select group of special interests can enjoy a tax holiday."
A bit later, June 4 2007, the Government updated their (Tax),“Fairness Pledge”, to all Canadians which reads in part:
Our Fairness Pledge
• Our fairness commitment is based on service that is responsive, consistent, and impartial.
• Our actions must reflect objective yet considerate application of the law.
•We recognize that taxpayers have specific needs and concerns.
Information
• We will give taxpayers information that is accurate and understandable. We will explain the laws in language that is plain and clear. We will provide all our services in English and French and, in some cases, other languages too.
The problem with this set up being the reference to:- reflecting upon an: “objective yet considerate application of the law.”
What does this statement translate into?
Then in the following paragraph is the second ill defined statement:- “We will explain the laws in language that is plain and clear.”
What does this statement translate into?
If “Fair Taxation” -- according to the foregoing “Fairness Pledge” – translates into having the defective, unfair taxable benefit legislation -- explained in plain and clear terms – Fair becomes Fare -- NOT FAIR. In other words:- Pay up --- ---- --.
Then so far that appears to be about as “Fair” as this government is prepared to go.
As long as the defective taxable benefit legislation remains on the books there is NO POSSIBLE WAY TO APPLY THAT LAW FAIRLY.
If some victims receive extra CONSIDERATION -- and have their taxable benefit taxes reduced or dismissed entirely -- how does that become “Fair” to all the other similar victims?
OBVIOUSLY IT DOESN’T.
Until the taxable benefit legislation is amended to exclude corporation shares -- no matter how acquired -- from the taxable benefit classification -- any pretence of applying “Fair Taxation” to all Canadians is a mere charade and an absolute farce.
Honourable Jim Flaherty -- Give your taxation “Fairness Pledge” some substance.
Amend the taxable benefit legislation to exclude corporation shares and company stocks as “taxable benefits” and have these equities taxed according to the really fair “Capital Gains/Losses” legislation.
REAL TAX ON REAL INCOME. That legislation IS universally Fair Taxation for all Canadians.
Until that is done the taxable benefit victims have no rights and also can not be given a fair deal.
All the fairness they can beg for is:- SPECIAL CONSIDERATION – with hat in hand.
There is absolutely no justification for doing half a job – correct the legislation and allow it’s past victims to apply for genuine fairness in their “Income” taxes.
Then if past victims decide to forego their RIGHTS to fair taxation they may safely be assumed to have made a conscious decision not to reclaim their rightful tax adjustment and are therefore being taxed fairly.
See you at the Federal Election Polls.
Victor Drummond ©
Wednesday, October 24, 2007
Beggars can't be....
“PLEASE, SIR, I WANT SOME MORE”
A parallel between Oliver Twist and the status of Canada’s
victims of the defective Taxable Benefits Legislation.
By Victor Drummond ©
October 2007
Charles Dickens wrote about a child born in a parish workhouse -- to a vagrant woman – who died shortly after the child was born.
The child, a boy, was born with only the universal right to exist and not much more.
Anything the parish administrators provided to him was by way of a favour – so far as the administration was concerned.
The day eventually arrived when the boy, now known as Oliver Twist, realized he needed more nourishment in order to feel comfortable and go to bed at night without hunger pangs.
Oliver then dared to approach the gruel dispenser – with basin, and spoon, in hand – and politely beg for some more nourishment. He didn’t likely realize his lack of self esteem or the low level of self worth or lack of social status that he had been living with.
The gruel dispenser was absolutely shocked that a vagrant child would have the audacity to plead for more.
Even the parish administration felt that such a child would eventually come to a sad end.
Fortunately very few children born in Canada suffer such hardships and lack of rights.
Children born in Canada not only inherit the universal right to exist but also the right to honest, fair and equal treatment under the laws of Canada.
This right should also apply to ALL Canadian taxpayers – but it does not.
There are many Canadians currently faced with huge tax levies on money they never saw and likely never will see.
Canada’s current government has upgraded a series of “Fair Taxation” bulletins, form and pamphlets and a “Fair Taxation Pledge” which create the impression they are seriously offering the taxable benefit victims – a fair deal. NOT SO.
As long as the Canadian Income Tax Act contains legislation that empowers the Canada Revenue Agency to tax non-existent gains as “Earned Income” then the victims of this legislation have NO RIGHT to real fair taxation. The victims of this mode of taxation are reduced to begging for their unfair taxes to be dismissed.
Way-to-go Canada. You have created our own sizable population of Oliver Twist(s).
These victims, however, have experienced attributes of dignity, compassion, social status and fully realize when they have been lowered in the social system from kings of their own domain to nothing more or less than beggars.
To add insult to injury they must beg for their own money which should never have been extorted from them in the first place.
The defective taxable benefit legislation -- that created this social disaster -- generates victims at a wholesale rate – while the appeal process is deliberately designed to provide relief to a very few victims at a time.
This is passed off as: “Equal Treatment” under the law.
Many victims would rather suffer the loss of their money than stoop to begging for what is rightfully theirs.
Furthermore the granting of relief to the paltry few -- who can afford to utilize the system – and may obtain a favourable ruling -- merely compounds the felony by creating unequal treatment for a fortunate few while -- leaving the vast majority of identical victims to stew in their own juice. This is also passed off as: “Equal Treatment” under the law.
Appeal after appeal has been made to every level of government over the past six, or more, years. The only real corrective action taken so far is the granting of remission of this specific taxation to some 60+ employees of the JDS Uniphase plant in Saanich British Columbia. For an update on this situation see prior articles:- “Could anyone want for more?” and “Will Canada’s Real Leader Please Stand up.”
PLEASE SIR CAN WE HAVE SOME MORE? – Give us back our RIGHT to Fair Taxation – Introduce a members bill to exclude Corporation shares from the “Taxable Benefit” classification.
If this injustice is ever going to be rectified it appears the Canadian Voter is the last ditch factor. They alone seem to be able to provide relief and fair treatment for the “Oliver Twist” victims of this defective segment of our tax legislation.
As a voter you can tell those who solicit your vote – “Commit your party to implement corrective action on the “Taxable Benefit” legislation – or NO VOTE.”
See you at the polls.
Victor Drummond ©
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