What Brian Mulroney did that Encouraged Tax Evasion - Part 2 : CRA SOTW
Alan Baggett
SOTW
What on earth could a former Canadian Prime Minister ever do that
would encourage some Canadians to avoid properly declaring their
earned income?
Well, let me tell you on a little trip down memory lane.
After Brian Mulroney quit the Prime Minister’s job but was still a
Member of Parliament he accepted cash payments from Karlheinz
Schreiber. He accepted $1000 dollar bills, delivered in brown paper
bags, in a series of secret meetings in 1993 and 1994.
In 1997 UNDER SWORN OATH Brian Mulroney denied any significant
dealings with Schreiber.
In 1999 Mulroney stated that he had accepted at least $225,000 in cash
(and perhaps as much as $300,000) from that same Schreiber that he had
previously denied having any dealings with. The cash was stashed in
his home safe and in a deposit box in New York. A great way to hide
assets from the prying eyes of the CRA because there is no paper
trail. And when there is no paper trail it sure is easy to avoid
declaring that income on your tax return. Which is exactly what Brian
Mulroney did. He conveniently forgot to declare at least $225,000 (and
perhaps as much as $300,000) on his yearly return of income.
So, to be clear, Mulroney has hundreds of thousands of dollars in a
safety deposit box AND IN HIS VERY OWN HOUSE yet he forgot to declare
this money on his tax return.
And Brian forgot these hundreds of thousands of dollars that he was
steps away from in his own home for several years. In fact he forgot
until 1999 when Schreiber was under criminal investigation in Germany.
Only then, after threat of exposure, did Brian Mulroney suddenly
remember these hundreds of thousands of undeclared untaxed income that
he was just steps away from in his home.
How this guy can forget hundreds of thousands of dollars he is just
steps away from yet manage to remember a tricky combination lock on a
home safe is beyond me.
And Mulroney’s excuse for not declaring the income? He stated that the
money was simply a retainer. For services to be rendered at a future
date. When he rendered the services then he would declare the money as
income.
But if you know anything at all about Income Tax in Canada then you
know that money is taxable in the year that it is received –
regardless of when it is earned. Section 12 requires such income to be
reported. And since this is a case of future services, if the services
have not been delivered by the end of the year then section 20 of the
ITA allows for a reserve to be deducted. Which means you would declare
part of the total payment as income.
Now Mulroney said that he intended to follow the law. So then why did
he not declare any reserve on his 1995 tax return? Or 1996? Or 1997?
Or 1998? Because though the services had not been rendered some of
that reserve has to be declared as income. Yet Mulroney never declared
a penny of this.
And yes, Brian Mulroney did have professionals do his taxes. And they
WOULD know the tax law. But if Mulroney somehow forgot to tell his tax
pros about the $225,000 then how could they include it on his tax
return?
They couldn’t.
NEXT WEEK: How the Canada Revenue Agency abetted Brian Mulroney - Part
3 : CRA SOTW
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Miss a Tax Tale Miss a lot!
Visit the CRA SOTW Library at http://canada.revenue.agency.angelfire.com
------------------------------------------------------------
Alan Baggett – http://taxcollectorsbible.com/ – Tax Collector’s Bible
Dave Smith
> So, to be clear, Mulroney has hundreds of thousands of dollars in a
> safety deposit box AND IN HIS VERY OWN HOUSE yet he forgot to declare
> this money on his tax return.
Yes.... but he did not lie when he was questioned about the money. IN
his smooth talking word twisting world he was asked about the money he
had put in a bank account. I guess someone assumed that he had deposited
that $300,000 in an bank account. He answered as honestly as we can
expect from Lyin Brian, that there was no account. He did not volunteer
that he kept the cash at home.
Juris Diction
<7162f20c-2c8d-4670...@hd10g2000vbb.googlegroups.com>,
Alan Baggett <canada.rev...@hotmail.com> wrote:
That's all he got caught with, but what else did the scammer get away
with?
--
"You can't solve a problem on the same level you created it."
- Albert Einstein
Dave Smith
>>
>> They couldnšt.
>>
>> NEXT WEEK: How the Canada Revenue Agency abetted Brian Mulroney - Part
>> 3 : CRA SOTW
>
> That's all he got caught with, but what else did the scammer get away
> with?
>
He got away with a settlement when he sued the government.... and he was
in the wrong. But don't fuck with Lyin Brian or you will find yourself
dragged to court.
Roy
> On 19/07/2011 4:36 AM, Juris Diction wrote:
>
>
>
>
> >> NEXT WEEK: How the Canada Revenue Agency abetted Brian Mulroney - Part
> >> 3 : CRA SOTW
>
> > That's all he got caught with, but what else did the scammer get away
> > with?
>
> He got away with a settlement when he sued the government.... and he was
> in the wrong. But don't fuck with Lyin Brian or you will find yourself
> dragged to court.
==
He was so embarrassed to be caught out as he was. He tried to make out
that it wasn't his fault that he was caught with his fingers in the
cookie jar. Despite his crocodile tears, he will NEVER live it down.
==
Alan Baggett
Some folks think that the Conservatives and Mulroney are being picked
on (by moi). So maybe we'll have to do a Chretien / Shawinigate story
to even things up. And yes, the now CRA had peripheral involvement in
that one as well.
Carter
> On 19/07/2011 4:36 AM, Juris Diction wrote:
>
>>>
>>> NEXT WEEK: How the Canada Revenue Agency abetted Brian
>>> Mulroney - Part
>>> 3 : CRA SOTW
>>
>> That's all he got caught with, but what else did the scammer
>> get away
>> with?
>>
>
> He got away with a settlement when he sued the government.... and
> he was in the wrong.
Carter
�pam�ust�r
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From: Carter <47....@55.55W>
Newsgroups: can.politics,can.atlantic.general,can.gov,misc.taxes,ns.general
Subject: Re: What Brian Mulroney did that Encouraged Tax Evasion - Part 2
: CRA SOTW
Date: Tue, 31 Jul 2012 14:25:00 -0230
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Carter
Nothing worth reading.
<childish garbage deleted>
Carter
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