Quote:
Originally Posted by GP_Matt
I have a question for those who want all tax loop holes closed.
Do you consider the charitable tax credit to be a loop hole? What about a tax break that encourages a company to move to an area of high unemployment? The northern living allowance that helps offset the high cost of transporting goods and people to the far north? One of my favorite loop holes is the RRSP and TFSA programs.
I love the idea of a tax code that could fit on a single sheet of paper but in reality, most of the so called loop holes have been created to solve a problem.
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I think the question is what is considered a loop hole. The two instances you cite are not loopholes, but rather tax benefits that are legislated to encourage a particular behavior.
Loopholes are holes in the legislation that people take advantage of, never designed to be part of the system. They are not illegal, but again, corporations like GE getting away with paying zero corporate tax? No government would ever intend that.
corporations that provide their employees with personal development stipends, which weren't counted as 'income' and therefore was not taxable...even though it is clearly income provided by the company. That's a loophole.