IF I WERE THE NEW FEDERAL
FAIR TAX OMBUDSMAN FOR CANADA
By Victor Drummond ©
June 2007
On May 28 2007 the Hon. Jim Flaherty, Minister of Finance and Hon. Carol Skelton, Minister of Revenue, made the grand announcement that:- Canadian Taxpayers will have a new Federal Ombudsman, and a modernized Bill of Taxpayers Rights.
The Ombudsman will have no real power to grant Canadian taxpayers relief of unfair taxation but will operate as an independent adviser to the Government on
taxpayers complaints.
FAIR TAX OMBUDSMAN FOR CANADA
By Victor Drummond ©
June 2007
On May 28 2007 the Hon. Jim Flaherty, Minister of Finance and Hon. Carol Skelton, Minister of Revenue, made the grand announcement that:- Canadian Taxpayers will have a new Federal Ombudsman, and a modernized Bill of Taxpayers Rights.
The Ombudsman will have no real power to grant Canadian taxpayers relief of unfair taxation but will operate as an independent adviser to the Government on
taxpayers complaints.
Although the money to finance the Ombudsman’s operation is supplied from the existing Revenue Canada’s budget – let’s assume the Ombudsman will perform properly on the basis of a keen sense of Fairness and Justice.
The initial taxpayers organization, to welcome the announcement, was:-
The initial taxpayers organization, to welcome the announcement, was:-
“The Canadian Federation of Independent Business. Garth Whyte, executive vice-president of the federation was quoted as saying:-
“People are upset with outrageous penalties and they should be able to get some relief, for the first time, ” adding he hopes the ability of willingness of the department to be forthright with information will also improve.”
So if I were the new:- Canadian Federal Tax Ombudsman here is how I would
Work to bring Fair, Just, and Equal Taxation to Canadians.
(1) -- I would recommend to the government that the major cause of:-
“Unfair” Taxation. i.e. Items wrongly classified “Taxable Benefits”, such as
Corporation Shares Options, be correctly classified as “Capital Equities” and
taxed only on realized gains – Not on "potential Gains" -- that are seldom
realized.”
(2) – I would recommend to the government that all Canadians taxed on
“People are upset with outrageous penalties and they should be able to get some relief, for the first time, ” adding he hopes the ability of willingness of the department to be forthright with information will also improve.”
So if I were the new:- Canadian Federal Tax Ombudsman here is how I would
Work to bring Fair, Just, and Equal Taxation to Canadians.
(1) -- I would recommend to the government that the major cause of:-
“Unfair” Taxation. i.e. Items wrongly classified “Taxable Benefits”, such as
Corporation Shares Options, be correctly classified as “Capital Equities” and
taxed only on realized gains – Not on "potential Gains" -- that are seldom
realized.”
(2) – I would recommend to the government that all Canadians taxed on
shares as:- "Taxable Benefits”-- be granted a retroactive amnesty decade within which they may resubmit all income tax returns that resulted in denial of tax refunds they would be entitled to if taxed on “Capital Gains.”
(3) – I would recommend to the Government they extend the “tax remission order” -- (granted to the JDS victims of “Unjust/Unfair” Income Taxes in British
Columbia, Canada) -- to all Canadians similarly taxed.
(No distinction to be made between Employee Stock Options Plans, (ESPP),
victims and Employer Profit Sharing/Incentive Options Plans (ESO) victims.)
(3) – I would recommend to the Government they extend the “tax remission order” -- (granted to the JDS victims of “Unjust/Unfair” Income Taxes in British
Columbia, Canada) -- to all Canadians similarly taxed.
(No distinction to be made between Employee Stock Options Plans, (ESPP),
victims and Employer Profit Sharing/Incentive Options Plans (ESO) victims.)
(This miserable indistinction was used as an excuse’ for denying the ESO victims the same tax relief as was given to the JDS employees in British Columbia’ in correspondence between a victim to at least one Government MP)
(4) -- I would recommend to the Government that the unfair tax discrimination,
currently contained in Revenue Canada’s “Taxable Benefits” regulations, be
removed and all shares acquired by employees be treated as “Capital
Equities”.
i.e. Shares of a “Canadian Controlled Private Corporation, (CCPC) being
treated as “Capital Equities” whereas shares of a non-CCPC are treated
as a “Taxable Benefit” is inherently discriminatory and grossly unfair.
If -- after the Government implemented the above four recommendations – there
were any valid appeals submitted for “Fair", “Equal”, and/or “Just” taxation
I would address the root cause of those appeals and recommend the government take appropriate corrective action in each case.
Within two years of operation I can guarantee there would be no valid basis left in The Income Tax Laws and Regulations for corrective action appeals and I could then make recommendation No. 5.
(5) -- I would recommend to the Government that the office of the Federal Tax
Fairness Ombudsman be closed on the grounds that there would no longer be
a basis for Unfair, Unjust and/or “Unequal” Income Taxation in the Canadian Income Tax System..
Victor Drummond ©
Author’s Comments:-
It must be apparent to everyone with any sense of “Fairness” that taxing
Phantom Profits as “Income” to the extent that the Taxpayer Cannot pay the taxes levied out of their realized income – is Unjust, and Grossly Unfair.
If further evidence that this form of Taxation Amounts to “Extortion” one need only try to rationalize justification for the $100,000 per year “Income Tax” deferment option provided by the Revenue Canada Income Tax regulations. (Form T1212)
If the taxpayer cannot meet the taxes levied out of their actual income then something is TERRIBLY WRONG.
If the taxpayer must borrow money, sell their Possessions and/or mortgage their homes to pay taxes levied on phantom Gains then again
Something is “TERRIBLY WRONG.
If some victims of the GROSSLY WRONG tax system are given tax relief that others in the same situation are denied:-
(4) -- I would recommend to the Government that the unfair tax discrimination,
currently contained in Revenue Canada’s “Taxable Benefits” regulations, be
removed and all shares acquired by employees be treated as “Capital
Equities”.
i.e. Shares of a “Canadian Controlled Private Corporation, (CCPC) being
treated as “Capital Equities” whereas shares of a non-CCPC are treated
as a “Taxable Benefit” is inherently discriminatory and grossly unfair.
If -- after the Government implemented the above four recommendations – there
were any valid appeals submitted for “Fair", “Equal”, and/or “Just” taxation
I would address the root cause of those appeals and recommend the government take appropriate corrective action in each case.
Within two years of operation I can guarantee there would be no valid basis left in The Income Tax Laws and Regulations for corrective action appeals and I could then make recommendation No. 5.
(5) -- I would recommend to the Government that the office of the Federal Tax
Fairness Ombudsman be closed on the grounds that there would no longer be
a basis for Unfair, Unjust and/or “Unequal” Income Taxation in the Canadian Income Tax System..
Victor Drummond ©
Author’s Comments:-
It must be apparent to everyone with any sense of “Fairness” that taxing
Phantom Profits as “Income” to the extent that the Taxpayer Cannot pay the taxes levied out of their realized income – is Unjust, and Grossly Unfair.
If further evidence that this form of Taxation Amounts to “Extortion” one need only try to rationalize justification for the $100,000 per year “Income Tax” deferment option provided by the Revenue Canada Income Tax regulations. (Form T1212)
If the taxpayer cannot meet the taxes levied out of their actual income then something is TERRIBLY WRONG.
If the taxpayer must borrow money, sell their Possessions and/or mortgage their homes to pay taxes levied on phantom Gains then again
Something is “TERRIBLY WRONG.
If some victims of the GROSSLY WRONG tax system are given tax relief that others in the same situation are denied:-
SOMETHING ELSE IS TERRIBLY WRONG.
These wrongs will not be RIGHTED
These wrongs will not be RIGHTED
AS LONG AS THOSE VICTIMIZED REMAIN SILENT
and those who should do something about this situation
also remain dormant.
(A victims of “Unfair Taxation” Association may be in the offing) – contact me for more information:- vic.drummond@sympatico.ca
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