How Brian Mulroney Encouraged Tax Evaders in Canada - Part 1 : CRA SOTW
Alan Baggett
SOTW
Strange to think that a former Canadian Prime Minister and veteran
lawmaker would embolden tax evaders in Canada. But that’s exactly what
our ex-PM did. And the sad thing is… is that neither he nor the Canada
Revenue Agency has yet realized the deleterious effect Mr. Mulroney’s
devious display is having on a once law-abiding Canadian public.
To set the table, I worked for Canada’s Revenue Agency for a number of
years and, during that time as a public servant, it was very rare to
hear a taxpayer threaten to ‘go off the grid’ and ‘not pay taxes’ –
though some indeed did threaten to do exactly that.
After quitting the CRA, I penned Canada’s best ever tax publication –
the Tax Collector’s Bible – and have helped thousands of Canadians win
their CRA battles. But, of late (the last couple of years), I have
noticed an unusual trend. As a private citizen helping others with
their tax problems ONCE it was rare to hear someone say that they were
not going to declare their full income on their tax return. Or perhaps
not bother to file at all.
But no longer is hearing such a threat rare.
And I trace the increase in these threats back to Brian Mulroney and
the Airbus affair.
And, not only are some Canadians threatening to declare/pay less than
the Income Tax Act mandates, they are also commonly asking where can
they stash this undeclared income to keep it away from you know who’s
prying eyes. Brian Mulroney split his undeclared income in a safe at
home and in a safety deposit box in a New York bank. But this is a
remedy that does not suit all Canadians.
Now I want to say for the record that I never tell folks to declare
less than what they have earned and I do not tell them to hide
undeclared income. But if someone comes to me asking for an
explanation of how the CRA works or if they have a tax question about
this or that I will do my best to honestly answer that question. What
they do with that answer and that information is their business, not
mine. I just give them the facts.
The one thing I do ask people who make these threats and ask these
questions is: “What are you going to do if you get nailed?”
And they usually reply with words to the effect ‘Mulroney did it so
why shouldn’t I?’ If I think that they’re (the CRA) on to me then I’ll
just come in and make a declaration and get a deal like Mulroney
(‘pulling a Mulroney’ is what this is popularly called). Either that
or I’ll just go bankrupt.
NEXT WEEK: What did Brian Mulroney do to encourage tax evasion in
Canada?
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Alan Baggett – http://taxcollectorsbible.com/ – Tax Collector’s Bible