Quote:
Originally Posted by Mathgod
Sigh. Was hoping this would get an honest conversation going, but so far all that's been offered is a bunch of trickle down economics, bootstraps kind of stuff. Am I really the only one on CP who sees a serious problem with the wealthy tip toeing around the tax laws like this, especially during a time when governments are running record deficits?
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This is an issue worldwide though. As long as the are different tax rules in different jurisdictions, such things will always happen where the ultra rich play things grey enough they cannot be prosecuted. Plenty of people in BC nab high priced purchases here to save PST if they can justify the trip over the extra paid on PST. What about someone hiring someone under the table to cut costs on repairs? It's the same concept but more advanced rules with more foreign jurisdictions and tax havens entering the game.
Ignore the tax label for a sec. If you could get a phone unlimited data plan out of province for half what you pay where you live and not outright violate any rules, would you? Similar concept, different topic. I can't comment on ultra rich, but the vast majority of the rich follow the rules. They just are able to access options other normal people cannot and for some, that's unfair. If the cra deems it unfair because it erodes the Canadian tax base, they will close those options reasonably quickly.
Id also be careful with using broad strokes. Just because someone is rich doesn't automatically mean they skirt the rules. Ethics aren't directly tied to wealth. I've seen scumbags on both ends of the spectrum. I always advise my clients to do things right or find someone else. Some of them were mad when they were paying more taxes year after year, then you couldn't wipe the grin of their faces when cra blitzes the industry and they watched others in the industry get absolutely wrecked while they were unscathed. Others left to find someone else and I was elated I had less shape up or ship out conversations. I've met many people who pay yearly taxes easily worth a decade of my gross wages (not even net wages).
Last I recall, I heard some rumors the CRA were gearing up for one hell of a blitz. Underground economy, especially construction seemed like their next target, but that went quiet just before covid. My buddy mentioned he heard rumors of some major IT upgrades and hiring, so there's the speculation that crypto is going to be another target for a blitz as well. I hiring think cra is waiting on a gotcha moment for these two targets. Lately it seems they've been more concerned about late filings and late installments.