Partners in Crime.

There is a long standing adage:- "Crime Doesn't Pay." Revenue Canada apparently doesn't subscribe to that concept according to their:- "Interpretive Bulletin Number IT-256R" which addresses:-

"1."...the treatment of those amounts in the hands of the recipient, and also covers cash or property received as a result of extortion, blackmail, bribery or other similar acts."

"2. These funds or property are income from a source and as such are taxable in the hands of the recipient. The cash or fair market value of property received will be added to the recipient's income in the year of receipt."

"3. Taxpayers who receive such funds, or property, may be subject to a penalty under subsection163 (2) for each year that they were taken and not reported."

"4. It is the Department's practice that when amounts that were added to a taxpayer's income under 2. above are repaid, there will normally be a deduction allowed in respect of such repaid amounts for the taxation year in which the repayments are made unless the taxpayer was a major shareholder or senior official of the injured party at the time of the theft or other act to which the comments herein apply."

So let me get this straight -- If I do any of the above actions to take money or property illegally that makes me a criminal -- Right?

Now if I share my ill gotten gains with Revenue Canada that makes them an entity now in possession of stolen property -- Right?

If you or I are caught in possession of stolen property we go to prison - Right?

No wonder Revenue Canada see's nothing wrong with stealing cash themselves -- in the form of taking huge sums of money from employee's who participated in employer's shares options plans and were taxed on profits that never existed.

Way to go -- RC.

I wonder if they give a tax refund to criminals (oops taxpayers) that have declared their stolen gains -- paid the tax -- then get caught -- after the money is all gone -- and go to jail?

Victor Drummond