The Tax Fairness Pledge...

COULD ANYONE WANT FOR MORE?
A commentary on the provisions made for Canadian
Taxpayers to appeal for Fair Taxation.
By Victor Drummond ©
October 2007

So you have a problem with the Income Tax Levied on you.
And you have been assessed to have received an assumed, (phantom), “Earned Income” substantially larger than your actual received income but you were taxed on the phantom amount anyway.
And/or your last tax assessment notice left you gasping for breath.


Well take heart – there is now a pamphlet issued by the Canada Revenue Agency, (CRA), number P148 – a document that is 23 pages in length -- with the encouraging title:-
“Resolving Your Dispute, Objections and Appeal Rights under the Income Tax Act.”
A sample letter of appeal is also provided with this pamphlet to make it easy to draft your own letter.

On the last few pages of P428 is a list of 43 Income Tax Offices where your appeal may be dropped off – or mailed. In addition there are phone numbers and for most offices also fax numbers. This list makes an appeal office within easy reach of all tax victims.

Or your first line of appeal could be via form T400A -- which bears the title:- “Objection to an assessment or determination.” This application for justice is to be sent to the:- Canada Revenue Agency -- Chief of Appeals -- when filled out.

Then again you may decide to use the Tax Ombudsman appeal form number:- RC193 which may be printed off the Internet -- via links from URL www.cra.gc.ca/fairness
Be sure to read the “Fairness Pledge” at this web page.

Or this same form comes with pamphlet RC4420 – an “Information or Service Related Complaint Pamphlet” -- which also provides details of how and when to use this document.

There are however a few hurdles to overcome in using any of the above forms, i.e. There may be a “Time Limit” restriction ranging from 90 days to a year – which may be waived, extended or applied at the whim of the appeals officer reviewing the case.

And/or there may be a filing fee charged ranging from zero $ to $550 depending upon the stage of appeal and the dollar amount of the claim.

And/or if the appellant’s claim is denied at the last level of appeal the taxpayer may be charged to pay part of the defendants legal costs to process the claim – plus their own legal and court costs – plus the initial tax levied.

The appellant has no less than 5 levels of appeal to consider. There is the first level appeal via letter of appeal to the first level CRA Appeals officer. No satisfaction -- then take the matter to the Chief of Appeals – still no satisfaction then take the issue to the Tax Court of Canada – still no satisfaction then bump the matter to the Federal Court of Appeal – still no satisfaction then take the issue to the Supreme Court of Canada – still no satisfaction – GAME OVER.

During this entire process the taxpayer will have spent possibly a year or so waiting for decisions and another huge amount of lost time and legal costs. (plus the original tax levy.)

Not a very attractive scenario or a system that offers much prospect of the appellant receiving a favourable outcome.

Question:- Why is the outcome of this elaborate tax appeal system tilted against the
appellant?

Answer:- Because at every level of the appeal system the taxpayer’s circumstances are being compared to existing – defective – taxable benefit legislation. The “Fairness Pledge repeatedly states the appeal will be treated “Fairly” according to the existing tax law.

Although the mandate of the Tax Court of Canada allows the court to take into consideration undue hardship imposed on the taxpayer by the application of the taxes levied – this very discretionary power increases the unequal treatment of taxpayers under the law – and leaves the courts decision up to the whim of the court.

Unless the appellant is given a prior “Means Test” they would have little prospect of getting a favourable decision.
NO DEAL

So the title question:- “Could anyone want for more?” The answer is a definite:- YES

MUCH MORE -- is an absolute requirement -- if the taxpayer has been levied taxes on a non-existent “Income”. The appellants case must be compared to a taxable benefit legislation. (LAW), that clears them of any tax liability on mere “POTENTIAL GAIN”

As a voter – notify your federal MP that they and their political party must commit to correcting this unfair, unjust, unequal tax fiasco – or they will not receive your support.

Victor Drummond ©