Canada's Tax Fairness..

CANADA’S FAIR TAX POLICY – LOTTERY
A commentary on one of the most hit and miss systems of income
Taxation one is liable to find anywhere in the world.

By Victor Drummond ©
January 2009

If you are looking for a country where you will only be levied income tax on real income you can check Canada off of your list.

Not only do Canadian tax laws leave you liable to be levied huge taxes on phantom income but when you appeal this unfair tax you may – or you may not – have your appeal approved.

According to the article by journalist DEAN BEEBY titled “Tax Breaks for Canadians inconsistent: audit” – which appeared in the Globe and Mail -- on-line News – January 17 2009 – the chances of having your tax appeal approved depends as much on the location of the tax appeals office – as it does on the merits of your tax circumstances.

Apparently there have been a number of gaffs committed by tax authorities all the way through Canada’s personal income tax system and especially in the so called Tax Fairness program.

For example the following quote from the DEAN BEEBY report just about says it all:-

“Under so-called “fairness provisions” dating from 1991, the Canada Revenue Agency, (CRA), can waive interest and penalties for taxpayers who through circumstances beyond their control have not been able to pay their taxes or have been late.”

That is a “fairness” action? It sounds more like a penalty imposed on taxpayers who have managed their finances well and paid their taxes on time.

In my opinion Canada’s personal income tax legislation has been designed by lawyers to maximize the legislation complexity and guarantee no one will get a fair deal without the assistance of a tax lawyer.

Even then most appellants -- who pay for legal assistance -- will end up sending good money after bad. This has been the case with two members of the tax victims group:- “Canadians for Fair and Equitable Taxes.”, (CFET). Ref:- www.cfet.ca

Members P.J. and B.I. both paid a large sum of money to have a lawyer present their appeal for the revoking of taxes levied on income that never happened, (Phantom Income).

Their appeals were both denied. Why? Likely because they had some property and/or financial assets that could be seized and/or wages that could be garnisheed.

Or they may just have merely lucked out on the location where their appeal was heard.

On the world stage Canada has been looked upon as a well organized, democratic country with competent people in scientific, medical, financial, technical, fields – even a world leader in some of these fields.

What a disgrace our income tax system has become -- in the past decade -- where tax fairness appears to be nothing more or less than the luck of the draw.

It sure makes Canada’s government look like a bunch of bumpkins who can not properly organize the operation a lemonade stand let alone a decent tax system for the entire country.

Canada’s government continues to tax our citizens on phantom income even though the U.S. government has amended their equivalent phantom tax legislation in October 2008.
Ref:- www.reformAMT.org

Canada’s federal political party leaders currently have a golden opportunity to correct this blight on Canada’s image -- and reputation -- by assuring the next federal budget includes a commitment to correct our defective taxable benefit legislation and compensate those honest, hard working Canadians who have already been victimized by it.

If the U.S. government can do it – so can Canada’s government.

When this money is put back into the hands of its rightful owners it will do more to restore consumer confidence and stabilize Canada’s economy than twice that amount if given to failing business operations.

If you prefer to see Canada as a real world leader – contact your Member of Parliament and notify him, or her, you want this problem corrected within the next federal budget.


Victor Drummond ©