Once again I escaped being on a list of scallywags who have been up to hijinks trying to bilk the government of its rightfully due taxes. Can you imagine anyone trying to deceive their own government (the government being the representatives of their family, friends and neighbours) about how much money they made and thus reducing or avoiding completely the income taxes thereon?
If we all hid our extra money in Panama how could the government afford to pay for all the things we take for granted – like roads, health care, education, recreation facilities, the CBC and airports from which we can fly to visit our tax money? This is not to mention paying for our emergency service sector like the first responders or even our armed forces who stand between the Americans and the Russians to the north and south, Kim Jong Un to the west and masked terrorists to the east. Besides paying these people, they also use the money to pay the Senate and themselves but there is overhead to every business.
One can almost sympathize with these tax evaders when the media reports scandals of misspent public funds on a daily basis. Just imagine how much more money could go astray if the government had collected all those income taxes. Let us not go there. One could also feel for these tax cheats if they were making better interest on their money than they could with our domestic banks; however in most cases they are not making interest, just hiding their money from the CRA in a supposedly safe and secure place.
So what would you do if you had a handful of extra cash and a burning case of greed? Who would you seek out to advise you where to hide your money and keep it away from the eyes of Revenue Canada? Why you might just DIY, take a well-deserved vacation - accompanied by a suitcase stuffed with money - to some warm island, and open a bank account. Alas, there is some risk in moving that money and you may also come into conflict with another country’s tax laws. You need professional help. Therefore you might consult your accountant, your banker or maybe even your lawyer. You may have to shop around as not all of the above are willing to side-step the law or interpret it in a shady way.
Revenue Canada is looking at KPMG and their connection the Isle of Mann evaders and now at RBC’s involvement with the Panama Papers’ law firm. However, who are really the guilty parties here? Is it the providers of the advice about the so-called tax loop holes or the person(s) who seek the advice about loop-holes?
Or, as we just observed in the Duffy case, are the poorly defined or written tax laws to blame for these opportunities to evade and avoid income taxes? No doubt most of us feel that taxes are a necessity to pay for the opportunity to work in an environment that affords us the chance to make a living and perhaps a little extra spending money. That’s why our country works.
And yet a recent survey found that one third of the people polled would consider using an off-shore tax haven if they had the money and opportunity. Personally, I never faced that dilemma, but what would you do? Just askin’.
