Trouble

TROUBLE modified

Tax avoidance is cool and legal. Tax evasion’s a crime. Like knocking off a milk store. Or ogling your assistant.

Avoiding tax is easy – contributing to an RRSP, splitting income with your spouse, making an investment account joint with your kids, putting your squeeze on the company payroll, getting paid through dividends, doing an estate freeze, creating a tax-deductible mortgage or setting up a family trust.

Evading tax is as common as it is illegal. Paying cash for services to avoid paying or remitting the HST or not declaring rental income are biggies. And lately, flipping houses.

As we’ve come to know, the T2 gang loves taxes. With plans to spend $120 billion more than they take in over the next four years, they have to. Every dollar counts. It’s why the TFSA contribution limit was gutted, plus a brand new tax bracket created for the quasi-wealthy and why there’s a lot more to come in the next budget. If you’re above-income, you have a bullseye on your butt.

So there’s now an Underground Economy Advisory Committee set up to report to the revenue minister, plus a new task force to crack down on tax evasion through offshore schemes – which will require taxpayer funding of $444 million, hopefully bringing in more than it costs (don’t hold your breath). This also explains the big push to punish Toronto condo flippers and Vancouver specuvestors.

In the GTA over the past year the CRA completed about 1,900 audits of real estate deals, with the average penalty coming to more than $22,000 in tax and HST. The Revenuers have just lately been sweeping into the Vancouver area, prompted by media reports of shadow flipping, crooked realtors and tax-evading Chinese dudes. Besides, with an intensely speculative bubble market in its climax phase these days, CRA auditors know there’ll be lots of low-hanging fruit to pick. It means a bunch of people who thought they were so clever might actually end up hunkered over their chequebooks. One recent penalty amounted to $2.5 million. Ouch.

So, what’s the crime?

Flipping’s at the top of the list. For example, someone buying a condo from builder plans for $425,000 and selling it upon completion for $500,000 might think they could write it off as their principal residence and pay no tax on the gain if they lived there for a few months. Well, forget that. In fact, the CRA doesn’t even consider this to be a capital gain, taxed at 50%, but rather business income, taxed at 100%. It means every dollar of profit can be added to the seller’s income and taxed at their marginal rate in that year.

The knives are also out for flippers that buy, gut, reno and sell. The law says HST must be added to the sale price of any “substantially renovated” house, which can bloat its market price dramatically. So the seller has to add that on, report and pay it. Or eat it. Or just evade it, and hope to slip through the cracks – a risky gamble since a public paper trail exists for the CRA to go sniffing down years in the future.

Then there are the shadow flippers – people who deal in assignment clauses. As this blog had detailed in the past, this is a major channel for condo sales in the GTA of late, with whole real estate brokerages specializing in assignments, or the resale of sale agreements. It’s all legal, but most of the poor people doing these deals have no idea any profit will be treated as income.

In the crosshairs, too, are non-residents. They don’t get to claim a real estate profit on a principal residence as tax-free. In fact, it’s not even a capital gain (taxed at half-rates) but must treated as Canadian income, and fully taxed. Worse, it has to be paid within ten days. Never forget you’ll face a tax bill on the sale of any investment or recreational property, like a duplex, rental condo or hobby farm. Cottages are among the most punitively treated, since all increases in value are taxable, but mortgage interest and carrying costs are not tax-deductible.

And that rental suite? Yup, every dollar you collect from your moldy tenants must be added to your employment income and taxed at your marginal rate, often shoving unsuspecting landlords into a hostile new tax bracket. Of course, a portion of your home’s costs are deductible (including some mortgage interest), but you’re compromising the tax-free status of potential profits on your home when you eventually bail.

Of course everyone reading this pathetic, law-&-order, government-loving, ammo-and-dogs blog is law-abiding and pays their fair share of taxes. But that shifty neighbour of yours with the pool and the Benz?

You might want to call that in. It’s the sunny way.

184 comments ↓

#1 TurnerNation on 07.24.16 at 4:23 pm

Great Galloping Garthos an early post.

#2 Shawn on 07.24.16 at 4:32 pm

We Can Fix This

In fact, the CRA doesn’t even consider this to be a capital gain, taxed at 50%, but rather business income, taxed at 100%.

****************************************

Simple fix, tax capital gains (rich people income) the same as earnings (regular people income).

It’s hardly necessary for the investor class in this country to evade taxes when the rules already tax them so very lightly.

And by the way, Joe selling shares to Frank at a gain puts not a dime into corporate coffers.

But everyone will see the world as they wish to.

#3 TurnerNation on 07.24.16 at 4:37 pm

Who cares.We pay enough taxes. Earn a dollar and get .50

Spend one of these after tax half-bucks and further pay 14% HST. If it’s on gas, booze pay another 50% tax. Plus every other 1001 taxes.

Meaning for each $1 we earn maybe .25 really is ours.

Long live the underground economy I say. Let the system collape and the Sunshine listers be stricken.

What’s the worst case…police refuse to investigate or attend to petty crime cases? (As they do so now.)

Or 5-10 hour waits for a broken finger in the Emerg room (like we have now)?

Crumbling infrastructure and every project laced with bribes err I mean consulting fees and cost over runs?

Work from age 16 to 55 get laid off and find you get next to no Employment Insurance [sic] for all those years of slavery?

Tru-Doh just announced he’s giving hundreds of millions of our money to the brutally corrupted Iraqi regime. Why bother.

#4 Gregory Saulson on 07.24.16 at 4:52 pm

Rental income should not be allowed to be included as income for calculating yearly RRSP contributions and deductions.

It is currently and that should be removed. You can’t use interest, REIT income, foreign dividends and interest, investment type and passive income like rental income, other income such as annuity income, pension income, C.P.P, OAS, annuity income, insurance benefits and income, retiree income etc. for RRSP contribution calculations and ultimately deductions saving 35% to 55% for most higher income Canadians.

Also, all social benefits and social support and income that are currently tax free from Child tax benefit, GIS to WSIB benefits, workers Compensation, benefits, social assistance, G.S.T., H.S.T., private disability benefits and insurance disability benefits that are currently not taxable and all other government and non-government benefits, income and support should all be taxed as income the current taxpayer’s tax rate.

Lotteries, gambling winnings, contests etc. should also be taxed when won as well at the current taxpayers current tax rate.

I would agree that we need an overall lower income tax rate and get rid of corrupt, wasteful, instrusive spending that governments mostly Liberals, NDP do.

There is too much thievery happening these days. Sorry affairs we live in.

#5 NoName on 07.24.16 at 4:56 pm

I like that dog!
Dogs like him keep me employed.

#6 Cory on 07.24.16 at 5:07 pm

How does the CRA find out if you bought a property and flipped it 3 months later anyway.

#7 JP on 07.24.16 at 5:14 pm

Crickets at YVR open houses today compared to just a few months ago. The sentiment is definitely changing.

#8 Randy Belwood on 07.24.16 at 5:16 pm

I was terminated from my employment in 2004. Decided to liquidate a piece of a Limited Partnerhip in Abbottsford, B.C. To my surprise a good chunk of the gain on my Limited Patnership that I owned for 16 years was treated as income. The tax rate was obviously much higher but the CRA also clawed back all of the E.I. proceeds that I had received. Needless to say I learned some tax avoidance tricks after that fiasco.

#9 GTA Engineer on 07.24.16 at 5:19 pm

#3 TurnerNation

Not sure where you live, but here in sunny Markham, Ontario, we can get in and out of the extended ER (‘urgent care clinic’) in under 30 minutes with minor sniffles, and within 30 additional minutes have a prescription filled and we’re medicated. Recently went in with a minor infection, was diagnosed and medicated within 45 minutes. Fractures have their own clinics and are similarly speedy. It’s the bigger procedures with high wait times, or stupid people who go to a hospital ER with a headache, that result in long wait times.

#10 BOOM! on 07.24.16 at 5:19 pm

Garth-

“Of course everyone reading this pathetic, low & order”….

Freudian slip????

#11 Barb on 07.24.16 at 5:21 pm

“…or setting up a family trust.”

I thought trust accounts ended at January 1, 2016.

#12 Freedom First on 07.24.16 at 5:21 pm

You might want to call that in-Garth
……………………………………………………….

Love it! I enjoy a free conscience from all of my Business dealings my whole life. ANY mistakes I have made in my life in any way, I have made right, and without being ordered to do so. A clear conscience for me is an absolute must. Leading a “Freedom First” life is priceless, and I am diligent. No exception.

Once again, someone in the last Blog called me a “Woman hater”. A lie. I love women. Men and women need each other. However, I like to live alone, and never have any room mates whatsoever. Too irritating to have a male room mate, and much much to high risk to have a female room mate.

Thankfully, women want to be with a real man no matter what. And all of my ex-girlfriends know I loved them all. Thus, I have no fear of running into any of them, as I am a kind and loving person. I always get a hug.

#13 cecil1 on 07.24.16 at 5:22 pm

What is your fair share of what someone else has earned??? It has to be EARNED before it can be taxed and stolen.

No service is free– most Canadians just want someone else to pay. And for the government to use force to take the money from others.

“I have never understood why it is “greed” to want to keep the money you have earned but not greed to want to take somebody else’s money.”

Fleecing the productive is a sure way to make the productive disappear or at least foster the parasitic mindset to steal, lie, coerce and destroy. Taxed on the money you earn, then taxed on savings, taxed on investments, taxed on tax.

Democracy has become one vote and 2 minutes of input every four years, followed by government fiat on 10,000 decisions to tax, steal and coerce everything from you for next 4 years–with state force to back it up.

#14 BOOM! on 07.24.16 at 5:23 pm

No matter how you get your money….in Canada it is best not to ‘earn it’ in the form of wages. OOPS! Did I say that?

#15 Donna Swanson on 07.24.16 at 5:26 pm

We all should have a minimum $5,000 higher personal amount for each Canadian as the Chretien and Martin Liberals did not increase it for at least 8 or 9 years on some proviso of inflation was under 3% a year.

Yeah right it was not true that inflation was under 3% during those years.

This goes for not only Federal but also provincial personal amounts. We should have a $23,000 combined personal amount per Canadian.

This means that $23,000 of the initial income is not taxed and is not taxable and not subject to any health taxes or other fees, taxes or whatever they want to call it.

Ask why the Ontario Liberals start taxing health taxes at $20,000 and above and their personal amount is $9,863. They know they are wrong in this regard.

This would help everyone working poor, middle class and higher income Canadians.

It would mean an extra $1,100 a year for even a minimum wage worker $11.25 in Ontario for instance working full-time to multiple part-time, contract work of 40 hours a week.

It is about time we get taxed on real dollars, net of inflation that we can use to purchase today and not taxed on devalued, depreciated dollars we all earn and make as income every year goes by.

This is one real example and most important problem that needs to be fixed right away because it impacts everyone except for those special Canadians getting social programs, income and certain government pensions, pay that pay not income taxes in the thousands and tens of thousands of dollars a year.

#16 Smartalox on 07.24.16 at 5:27 pm

Wow Garth, you talk about taxes like you were minister of National Revenue, or something!

#17 not 1st on 07.24.16 at 5:27 pm

Garth, you forgot one major thing. T2 will be taxing equities harder in the future as well. Why did you leave that out?

Because he won’t. — Garth

#18 Smoking Man on 07.24.16 at 5:32 pm

One really good year. 20 million and I’m out here with everything . Equidor here I come.

No extradition treaty… Then chirping cra on twitter.

#19 Brazil ex-pat on 07.24.16 at 5:32 pm

#220 crowdedelevatorfartz on 07.24.16 at 1:12 pm
More news from Rio2016 where, apparently, overflowing toilets is a common occurance due to “narrow pipes” thus the average Brazilian doesnt flush toilet paper……they just toss it in the waste basket………mmmmmmm . Niiiiiiiice.

Reminds me of my favorite song.

“Ooooooooo Oooooooo that SMELLLLLLLL. That smell that surrounds youuuuuuuuuuuuuu.

http://www.reuters.com/article/us-olympics-rio-village-australians-idUSKCN1040NN

++++++++++++++++++++++++++++++++++++

Rio?…..hmmmm Rio….please tell me more about this place called Rio. I am not familiar with this place considering I live in one of the biggest countries in the world.

#20 X on 07.24.16 at 5:32 pm

Unfortunately when people feel they are being unfairly taxed it leads to more desperation to evade taxes, legally and illegally. Will probably see more people in the future who feel the gov’t is treating them unfairly try to pay a little less. As higher taxes are coming…

#21 Rapier Wit on 07.24.16 at 5:51 pm

Any notions on things to come in the next budget? I need to start planning ahead.

#22 not 1st on 07.24.16 at 5:52 pm

Where are all the shovel ready infrastructure jobs he promised? Boy T2 is taking a page right from obama. All he has done is shovel money to special interest groups.

Where is one transformative economic project that will improve our economy? And dont say green energy because he shutting down 3 other industries to make way for that one.

T2 could be a hero tomorrow by doing 3 things, building energy east and transmountain, banning off shore crude imports and halting all foreign arms sales to pathetic dictator govts.

#23 46 and 2 on 07.24.16 at 5:57 pm

Garth, you forgot one major thing. T2 will be taxing equities harder in the future as well. Why did you leave that out?

Because he won’t. — Garth

Garth, here is the thing with you…first off, I’m going to guess that you are an Aries. Secondly, you come off like you can see into the future and to be honest, you are wrong most of the time. Just sayin….

No way capital gains taxes will be increased without significant financial implications, and a very modest gain in revenues. Even these guys are not that thick. — Garth

#24 Al on 07.24.16 at 6:01 pm

#8 – Markham Stouffville Hospital. Things must have changed if you are correct because I went to that hospital 15 years ago with a fracture in my right hand and waited 5 hours while the ER Doctor walked around with a cucumber in his you know what deciding who to treat next. Left and went to North York General where I was treated within 45 mins. Never went back to Markham Stouffville since and trashed their contribution letters since.

#25 DON on 07.24.16 at 6:03 pm

#9 BOOM! on 07.24.16 at 5:19 pm

Garth-

“Of course everyone reading this pathetic, low & order”….

Freudian slip????
*********

I had the same thought…

But the link to the CRA that was priceless. And no doubt will be used.

#26 Unbalanced on 07.24.16 at 6:08 pm

People feel the government steals from them, so they in turn feel they should steal from them! An eye for an eye!

#27 DON on 07.24.16 at 6:12 pm

@ Freedom

Once again, someone in the last Blog called me a “Woman hater”.

Thankfully, women want to be with a real man no matter what. And all of my ex-girlfriends know I loved them all. Thus, I have no fear of running into any of them, as I am a kind and loving person. I always get a hug.
**********

Yah the woman hater comment was not correct.

I’m with you on the live alone bit (I was once in the position and understand – I have chosen a different path – to each their own).

And as the Elvis songs says. “I love only one girl, one in every town”. Live on Freedom.

#28 jess on 07.24.16 at 6:14 pm

trumpian words don’t add up

Chart 1
Police-reported crime severity indexes, 1998 to 2015
http://www.statcan.gc.ca/daily-quotidien/160720/cg-a001-eng.htm

http://www.statcan.gc.ca/daily-quotidien/160720/dq160720a-eng.htm

======
The World Is Not Falling Apart

Never mind the headlines. We’ve never lived in such peaceful times.
By Steven Pinker and Andrew Mack
…”series of graphs produced by Harvard’s Steven Pinker and Andrew Mack, published in Slate. If you are terrified by the massive rise in terrorism, here is the chart, detailing mass killings and genocide, which includes all Islamic terror. Since 1945, as you can see, it is a stunning decline — with a small uptick, which is almost entirely countries like Syria, Iraq and Nigeria.
http://www.slate.com/articles/news_and_politics/foreigners/2014/12/the_world_is_not_falling_apart_the_trend_lines_reveal_an_increasingly_peaceful.html

#29 mouldy in YVR on 07.24.16 at 6:15 pm

http://www.westender.com/news-issues/vancouver-shakedown/glimmer-of-hope-and-reason-in-vancouver-real-estate-crisis-1.2306353

…..let’s talk home inspections!……not only do we pay 3x as much as we should for property in YVR, but we are happy to buy without a home inspection………..
“Recently, the practically out-of-work Home Inspectors Association of B.C. (HIABC) called upon our provincial government to put in place a mandatory seven-day period after an offer is accepted on a home, in order to have that home properly inspected.”
….too little, too late …………read the above and weep……

#30 Paulo on 07.24.16 at 6:16 pm

very interesting article Garth
wounder if anybody in the T2 gang is reading
so we have 10’s of thousands of university grads flipping burgers at Mc”D’ s
a over worked bunch of auditors at revenue Canada
and thousands of players playing the real estate ponzi game, including cheating the tax man …..
likely not declaring profits from flips, rental receipts from the basement molders, and on and on , and of course while the T2 Gang Is spending the country into a ditch .
Um have to wounder if revenue Canada had the manpower to at least give every real estate deal a quick look over for compliance, and had a data base of say the people that are on public assistance and represent a significant portion of the basement “molders” and could at the press of a button determine if the landlord is claiming the rents paid, and the ability to reasonably determine if a real estate deal is a legitimate sale of primary residence or a reno/flip or flip taxable interesting possibilities: in this country every thing is electronically recorded and traceable/this is a no brainier and a politically correct way to enforce and collect the fair and equitable taxes due and payable by the ponzi players and gets the T2 gang off the hook in having to enact new regulations/tax laws etc that dont play well at election time um interesting to be sure wounder if they are listening ?

#31 Smoking Man on 07.24.16 at 6:23 pm

Best Milo Interview ever.
Right after being banned from Twitter.

https://youtu.be/2IforcRvbKg

#32 joblo on 07.24.16 at 6:24 pm

“As we’ve come to know, the T2 gang loves taxes. With plans to spend $120 billion more than they take in over the next four years, they have to.”

Okay so get on with legalizing the Herb T2 Gang.
Most will be happy to pay the tax on it, looks like we gonna need it.

#33 Suede on 07.24.16 at 6:25 pm

Shit.

Make too much money.

Child payments from Trudeau got chopped.

Need to start having more kids and making less money to get more free loot.

#becauseits2016

Just joking.

Time to look for more revenue sources

#34 BOOM! on 07.24.16 at 6:39 pm

Before we get too high and mighty on TAX REFORM ideas, might I suggest Canada look provincial laws that hinder inter-provincial commerce.

As a former pro in the trucking biz, WHY should it take dealing with every dam province I need to route O/D & heavy loads of equipment through, say from Quebec to Alberta? The process takes close to a FULL month a get permits, but we can source the materials overseas, to a port in the US, or domestically in the US. Then truck direct to Alberta.

1. Canada loses domestic machine build order, goes overseas, or To US based competitors.

2. US gets port traffic, truck movements & permitting only takes under 24 hours!!

Canada Competitive? Hell NO!!! (could be…)

You need to get your heads removed from your rumps even to compete inter-provincial. That was but ONE example.

#35 Toronto1 on 07.24.16 at 6:40 pm

Next budget should be a fun one: expect an increase of cap gains on property (non primary) probely put out an amnesty for those with second suites that are undeclared and a increase in estaye tax etc and aslew of other taxes.I agree with Garth, financial stuff will remain larglely untouched to many implications for financial markets.

You fuys have to remeber this is T2, they never meet a tax they didnt like, all of the promises made need to be paid for.

#36 JM on 07.24.16 at 6:41 pm

Beauty of a dog, I love how honestly expressive dogs are, not usually any doubt what they are thinking. Makes it kind of hard for them to get away with anything. My shepard puts her ears totally down and does her “bad dog” look before the evidence is found, too funny to even get mad.
Best JM

#37 Shawn on 07.24.16 at 6:47 pm

Anyway…

Some people evading taxes on house gains is not what CAUSED the huge house gains in the first place.

#38 kothar on 07.24.16 at 6:53 pm

Don’t forget about the imposed national carbon tax he promises to place on us all, with the provinces or not.

#39 Shawn on 07.24.16 at 6:56 pm

Capital Gains Taxes

Were very unfair back when they were first introduced in the 1970’s. In those days much of the gain was illusionary as it was just due to inflation.

Now, inflation is tiny compared to the 1970s and so most of any capital gain is a REAL increase in spending power.

It would not be unfair to tax capital gains like income.

The government should not pick winners and losers by encouraging people to invest for gains instead of being employed.

The rich and especially the investor class are taxed too lightly. The poor and the lower middle class know this. And they are getting angry.

The rich get “tax breaks” and argue endlessly for more and whine for years when one is taken away. Someone else obviously has to make up for these “tax expenditures”. Cue the lower middle class.

The tax system is designed to encourage the taking of risks in the pursuit of economic expansion. We have enough people already stuffing money into brain-dead investments which end up funding mortgages. Surely you agree. The break is not only for the rich. It’s just a shame when some people (like you) put all their worth inside an RRSP and squander this opportunity. Try not to be bitter. Unhealthy. — Garth

#40 A belieber on 07.24.16 at 7:07 pm

What’s a milk store??

Man…..you guys are old. I definitely underestimate the generation gap around here.

It’s the marketing end of cattle. — Garth

#41 tkid on 07.24.16 at 7:09 pm

An interesting read …

http://zerohedge.com/sites/default/files/images/user5/imageroot/2016/07/21/2016%207%20IceCap%20Global%20Market%20Outlook.pdf

#42 Robert on 07.24.16 at 7:13 pm

I sincerely hope that CRA will be aggressive chasing scofflaws. Our tax system is supposed to operate on honor and trust. If rumors of massive tax evasion at play in Vancouver real estate (and other domestic markets) are only half correct, this still corrodes the trust that everyone is contributing their share to maintain our social services and infrastructure. Those (domestic and foreign) who game the system are parasites. The rules are in place but do the respective government agencies have the will and means to enforce them.

#43 offgridder on 07.24.16 at 7:28 pm

Maybe we should report their whole damn T2 party.

#44 observer on 07.24.16 at 7:30 pm

My point of view you should only get two tax free residential properties in your life. Otherwise everything else should be considered as capital gains.

If you are turning over a house every 3 years, then I see that as a problem and tax evasion. BTW it should be per household

#45 Mark M. on 07.24.16 at 7:31 pm

#6 JP

How about the sentiment on Fed rate hikes? Still expect 3 this year? I expect none, and have for two years now. Only wrong once, the token 25 basis point “liftoff” in December.

#46 Bytor the Snow Dog on 07.24.16 at 7:48 pm

No mention of Panama? That cuts deep.

Media sexy, but not much revenue to collect. — Garth

#47 Chaddywack on 07.24.16 at 7:58 pm

Most people in vancouver don’t even declare their rental income. Those who are renters might want to think of sending a lead into cra…..especially if your landlord asks for it in cash…..just saying.

#48 Remy Gable on 07.24.16 at 8:02 pm

“The tax system is designed to encourage the taking of risks in the pursuit of economic expansion.” -Garth

So Scandinavian countries whose tax system is very much the opposite of ours are not looking for “economic expansion” ?

Ask them. And find out about that 25% GST while you’re there. — Garth

#49 MF on 07.24.16 at 8:10 pm

#211 Metaxa on 07.24.16 at 11:54 am

“If you think the Democrats are left of anything you are sadly mistaken.
Now, Bernie, the man you would seem to be defending by your ham fisted attempt to smear…he is to the left politically.

The “educated” Canadian right on full display. Once again its clear who hide among the right.”

-Glad to see my post upset someone like you (as expected).

The accompanying personal insult was anticipated so no biggie.

Also expected was the typical claim of moral and intellectual superiority/arrogance.

Leftist confirmed.

MF

#50 WUL on 07.24.16 at 8:11 pm

#37 A belieber on 07.24.16 at 7:07 pm
What’s a milk store??

Man…..you guys are old. I definitely underestimate the generation gap around here.

It’s the marketing end of cattle. — Garth
*****************

What is a milk store?

Young fella, out here in the Bible Belt of Alberta and not very long ago, it was illegal to have a store open on Sundays. But people needed milk. So Mac’s Milk Stores opened but first they had to go to the Supreme Court of Canada to challenge conventional “wisdom”.

Now, fortunately, we can buy booze and smokes on Sundays.

Heathens in the Badlands. That’s us. Increased tax revenue to gov’ts too (on topic).

#51 BillyBob on 07.24.16 at 8:13 pm

haddywack on 07.24.16 at 7:58 pm
Most people in vancouver don’t even declare their rental income. Those who are renters might want to think of sending a lead into cra…..especially if your landlord asks for it in cash…..just saying.

====================================

Uh, if your landlord is caught and has to dip into their pocket to pay an outstanding tax bill/penalties, what do you think will happen to your rent?

Don’t get me wrong, I’d love to see evaders get nabbed, but your advice is pretty self-defeating.

Best way to avoid Canadian taxes is to leave Canada. There ARE other countries, you know. You can still visit up to 182 days/year, and with the weather that’s about 120 days more than you need to…

#52 Tony on 07.24.16 at 8:17 pm

Re: #8 GTA Engineer on 07.24.16 at 5:19 pm

Most people don’t wait until 3 in the morning to go to the hospital. Even at that time in Markham you’d be looking at a wait time of one hour. Any time in the day is at least 2 hours wait time. To see the doctor is usually about 6 hours wait time in Markham.

#53 Tony on 07.24.16 at 8:20 pm

I still have a couple of rental units in Edmonton. This year there is no rental income (negative with no mortgages) and prices have fallen back to 2005 levels.

#54 MF on 07.24.16 at 8:24 pm

I welcome this initiative by the CRA. The juiciest target should be the undeclared rental income.

This has got to be the most common form of RE tax evasion here in the GTA, since I reckon a lot of people do not understand how to shadow or assignment flip.

MF

#55 WUL on 07.24.16 at 8:24 pm

O.K., O.K.:

It was the BIG M DRUGMART case (way back in 1985) in the Supreme Court of Canada that allowed me to exercise my freedom of religion (Temple of Retail Therapy) on Sundays and not Mac’s Milk.

http://www.thecanadianencyclopedia.ca/en/article/sunday-shopping/

#56 Tony on 07.24.16 at 8:26 pm

Re: #23 Al on 07.24.16 at 6:01 pm

That’s about right, I usually wait about 6 hours during the daytime at Markham Stouffville Hospital. They put extensions on the hospital and now it’s even a longer wait time. Bigger hospital and a lot less staff.

#57 Freedom First on 07.24.16 at 8:30 pm

I can wash, dress and feed myself. Women love me.

#58 Metaxa on 07.24.16 at 8:33 pm

#46 MF writes (to me!)

Leftist confirmed.

I was born in 1944, father was a Progressive Conservative, mom was NDP.
Started voting in the 1960’s and have never, ever voted left in my life, federally.

Federally I was PC until McKay sold out, provincially I usually vote for the person, not the party so I’ve voted out of party there a few times.

Trouble with folks like you is you feel flinging a lie, a made up fact and a pejorative makes a good argument..but when you don’t even have your facts in line it just makes you look sad…and butthurt.

So, going forward, try and keep up, eh?

#59 JP on 07.24.16 at 8:39 pm

#42 yes sir my original statement “2 or 3 fed rate hikes still on the table for this yr”. You can doubt all you, only time will tell.

#60 Nelley on 07.24.16 at 8:41 pm

$45Remy-Scandinavia ain’t what it used to be-Sweden is #2 globally for rape occurrence (rape was pretty well unheard of in that country 40 years ago)-the Soros/Merkel program is on track.

#61 WUL on 07.24.16 at 8:48 pm

In fact, if memory serves (doubtful in my case), under the Lord’s Day Act legislation in Alberta, a contract for the purchase and sale of real estate signed on a Sunday was void and of no force and effect. If that sensible legislation was re-enacted it might cool the market by 1/7ths. #don’thaveamillion should advocate for this.

#62 Joseph R. on 07.24.16 at 9:16 pm

Garth,

You may want to add the CRA gives a 5 to 15 % reward of the recovered sum if your report to the snitch line pans out.

Are you not supposed to rat people out for true patriot love in all thy…err…ahh…? — Garth

#63 Chaddywack on 07.24.16 at 9:18 pm

@billy Bob.

I don’t rent there anymore ;)

#64 Destiny Falls on 07.24.16 at 9:23 pm

DELETED

#65 stage1dave on 07.24.16 at 9:27 pm

Haven’t been to the CRA website for a while, but I was under the impression that living in a house you purchased for at least 6 months meant “principal residence” and any profits were free and clear…has this changed?

I knew several peeps that took advantage of this rule thru the 2000’s, moving every year and profit-taking.

Anyway, tax collection (like a lot of other “enforcement” procedures) seems to resemble that old quote about ocean demographics; small fry get chewed up pretty good but all the big whites are swimming freely.

Being self-employed, I have a multitude of W/O’s that I try to use to fullest extent, but just about always wind up paying in…and that’s before the dreaded “re-assessment” notice shows up during the summer. (gee, it’s just about time)

When selling vehicles or collectibles that have been gathering mould for a while, I cheerfully pay the capital gain and move on…I’ve made a bit ‘o cash over term of ownership (and enjoyment!) and get to pay for a couple streetlights.

(or whatever boondoggle our various levels of government have decided to waste it on…I’m trying to be an optimist here)

#66 AfterTheHouseSold on 07.24.16 at 9:30 pm

#217 Blacksheep
“The Fourth Turning” and repeating cycles

Published in 1997 by Strauss and Howe, (aka Stress and How!), I’ve only recently read this book and likely saved myself years of sleepless nights. If you read this back in the day, it’s time to dust off this gem and reread with the benefit of hindsight now that we have entered the the fourth turning.

In 1997 the authors predicted with freakish accuracy:

Spark event: “We will be ready for a dramatic event to shock the nation out of its complacency and decay.”
The twin towers, 911
(The last one was the bombing of Pearl Harbor)

Catalyst event: “a financial crisis and deleveraging will take place around 2005.”
The Great Financial Crisis 2008/09

This to be followed by an approximate 10 year period of regeneracy where the country rebuilds itself.
(This is where we are now in the cycle)

The Crisis: All fourth turnings to date have ended in a civil or world war. It will be caused by an event that leaves the country with “no choice”. Just in case your own imagination isn’t running rampant, the authors toss out a few scenarios, one of which involves Russia. This will be a decisive event after which “society passes through a great gate of history, fundamentally altering the course of civilization.”

This book is of the brown-bag genre; that is, may alternately cause hyperventilating and drinking. It is interesting, disturbing, thought provoking on many levels; life cycles overlaid on history and economics and man kinds purpose to push civilization forward.
Put this on your must read list.

#67 Freedom First on 07.24.16 at 9:39 pm

#25 DON on 07.24.16 at 6:12 pm

@ Freedom

Once again, someone in the last Blog called me a “Woman hater”.

Thankfully, women want to be with a real man no matter what. And all of my ex-girlfriends know I loved them all. Thus, I have no fear of running into any of them, as I am a kind and loving person. I always get a hug.
**********

Yah the woman hater comment was not correct.

I’m with you on the live alone bit (I was once in the position and understand – I have chosen a different path – to each their own).

And as the Elvis songs says. “I love only one girl, one in every town”. Live on Freedom.

FF007

Thank you so much for your support Don. As a man close to 70, it’s so very nice to have someone reference “The King” and his music. I cried like a baby the day he died. My 22 year old girlfriend has been asking me about Elvis because she hears me humming his songs, songs that she doesn’t know. She doesn’t know who Elvis was Don!!!!!!!
Isn’t that sad?!?
Anyways…people on this blog…they don’t understand me Don, not like you, not like you Don, NOT LIKE YOU!

#68 BOOM! on 07.24.16 at 9:50 pm

#38 kid

Most interesting link. (thanks!)

Quite a lot to think over, and his numbers are correct.

Whether his assessments are mostly correct remains to be seen. Our ‘chicken lady’ Yellin won’t move rates until the place is on fire, that is a sure bet.

Whether England signs article 50, to exit the EU remains to be seen. Meanwhile you could invest in Italian, French, or German banks should you have a burning desire to lose capital…

#69 Shone of the debt on 07.24.16 at 9:53 pm

Real estate deals, Repairmen making cash deals, Rental Income that is unreported, all chump change…Multinationals allowed to avoid paying Canadian taxes legally is what we should be up in arms about.

http://www.cbc.ca/news/business/canada-offshore-tax-avoidance-corporations-tiea-1.3639597

#70 Nelley on 07.24.16 at 10:02 pm

#63After-You should read SUBMISSION by Michel Houellebecq-give you some more sleepless nights.

#71 Dick on 07.24.16 at 10:07 pm

Garth – I’ve seen some folks go to the lengths of packing up and becoming non-residents in order to avoid paying taxes here. I always assume these people will come crawling back from their third world tropical paradises when things get iffy or when they need the Canadian medical system when they are older.

I’d be curious to hear your thoughts or stories on the potential pitfalls or consequences of returning to Canada after being non-resident.

#72 Mr. Frugal on 07.24.16 at 10:08 pm

Looking like the end for Hillary. Wiki Leaks shows system was rigged against Bernie. Collusion with media. And now Bernie supporters are going to protest the DNC. Oh and Clinton Cash movie trends number 1 on Facebook. So long Hillary.

#73 MF on 07.24.16 at 10:17 pm

#55 Metaxa on 07.24.16 at 8:33

More insults from you.

No worries.

MF

#74 Arfmooocat on 07.24.16 at 10:22 pm

#37 A belieber on 07.24.16 at 7:07 pm
What’s a milk store??

Man…..you guys are old. I definitely underestimate the generation gap around here.

It’s the marketing end of cattle. — Garth
…………………………………………………………………….

Kids today don’t know how easy they have it. When I was young I had to walk 9 feet through shag rug to change the TV channel

#75 Mean Gene on 07.24.16 at 10:22 pm

My old man built his new home on a piece of land he has owned forever… would he have pay capital gains by converting it to his principal residence? He sold the old place which he lived in for 20 plus years.

#76 Smoking Man on 07.24.16 at 10:25 pm

#68 Mr. Frugal on 07.24.16 at 10:08 pm
Looking like the end for Hillary. Wiki Leaks shows system was rigged against Bernie. Collusion with media. And now Bernie supporters are going to protest the DNC. Oh and Clinton Cash movie trends number 1 on Facebook. So long Hillary.
……

Shes done.

Pop quiz….

How to tell the difference between a lefty and a conservative without talking politics.

A lefty blames others for their mistakes. They never learn from them. Are masters out hurling insults to those that point it out the bielef system is wacked.

Conservatives learn from mistakes. Never blame others. Always optimistic no matter how hard the challenge.

#77 Cottingham a bargain on 07.24.16 at 10:35 pm

Garth , you talk about the income tax system like it is actually fair.

How absurd is it for an income earner above 200k to pay 52% of his income into the black hole of government? Yo have it spent on what is nothing less than transfe payments to the unproductive ?

Before you squak about essential services like medical , police, fire etc. tell me if fair ,52%???

#78 Solutions guy on 07.24.16 at 10:36 pm

#31 BOOM!

You should find someone (like me) and work on a solution to make this happen…

#79 Smoking Man on 07.24.16 at 10:37 pm

DNC Email Leaks Show Racist Outreach to Latinos Called “Taco Bowl Engagement”
……..

Oh O

Bye Bye Latino support.

http://newsninja2012.com/dnc-email-leaks-show-racist-outreach-to-latinos-called-taco-bowl-engagement/

#80 john on 07.24.16 at 10:45 pm

A townhouse listed since forever with 800k; today got relisted with 850k… with some new photos… Where is the logic?

#81 Smoking Man on 07.24.16 at 10:48 pm

#70 MF on 07.24.16 at 10:17 pm
#55 Metaxa on 07.24.16 at 8:33

More insults from you.

No worries.

MF
…..

I’m thinking the guys a lefty. They are the ones that insult people. We the advanced, We insult stupid ideas.

See my above post.

#82 betamax on 07.24.16 at 10:54 pm

#22: “Garth, here is the thing with you…first off, I’m going to guess that you are an Aries”

…and that’s when I stopped reading.

#83 TnT on 07.24.16 at 11:03 pm

Report on Your Neighbor

(& Let’s Repeat Nazi Germany All Over Again!)

http://educate-yourself.org/cn/kirwansnitchculture15dec10.shtml

#84 Blobby on 07.24.16 at 11:17 pm

@74 – I earned $225k last year… I sure as hell didn’t pay 52% tax!

Maybe you should get a new accountant? Or stop worrying about how much you’d be paying in your dreams?

#85 Paul on 07.24.16 at 11:19 pm

Garth.
Turn in your biker patch!
A snitch line really?

Not my idea! When I was minister I declared a tax amnesty. — Garth

#86 Smoking Man on 07.24.16 at 11:22 pm

Ah Man. The true face of the crooked left shows its ugly face.

Make America Great Again. There is a possibility I’m getting royalties….

http://www.thegatewaypundit.com/2016/07/detailed-list-findings-wikileaks-dnc-document-dump/

#87 Cici on 07.24.16 at 11:25 pm

#26 jess

How reassuring…go show that right away to all of the concerned citizens in France and Germany. I’m sure they’ll feel much better…NOT!

#88 WUL on 07.24.16 at 11:28 pm

Garth:

Can I take advantage of your tolerance one more time?

My wife knows how to play hardball. She is about to throw smoke from the pitcher’s mound at our cable TV provider. An inside fastball across the letters. If they won’t provide us a $20/month leftie package (CBC, PBS and the Golf Channel) they can kiss our $120/month payment goodbye.

If not, they will witness a high inside dangerous pitch towards the head. Could empty the dugouts.

#89 Flat Tax Rate on 07.24.16 at 11:30 pm

Wouldn’t a flat tax rate be the fairest and most moral option for taxation?
Why a progressive taxation is now considered to be a status quo in most western countries?
I work as an Engineering and make around 80K a year without overtime (so you can’t define me as the ‘filthy rich’ who hates progressive taxation for ‘selfish’ reasons), but myself and many of my colleagues often avoid working overtime hours, or prefer to bank overtime hours and take them as a vacation. The main reason is progressive taxation.
Overtime hours put us in the higher tax bracket and therefore create a ridiculous situation in which our net hourly rate (tax deducted) for the overtime hours is lower than the hourly rate during regular work hours. So who would want to work more hours but get paid a lower salary during these hours?
I know it might sound a bit simplistic, but wouldn’t the government benefited more, both financially and from a worker productivity stand point, if we just had a flat tax rate in Canada…? This will also eliminate any need for income manipulation like income splitting, transferring income to different tax years to avoid paying more taxes, etc.

#90 Smoking Man on 07.24.16 at 11:42 pm

As we debate real estate valuations. Us politics the machine wants to go to war with Russia.

The banning of athletes is nothing compared to what’s going on behind the scenes..

Google Paul Craig Roberts..

Machine isent going down to Trump with out a fight.

#91 Arfmooocat on 07.24.16 at 11:46 pm

#85 WUL on 07.24.16 at 11:28 pm

$120 a month for cable?
Damn you forget what all the extras cost when your rent includes everything.

#92 Hilarious on 07.24.16 at 11:51 pm

The uniform enforcement of tax law seems to upset you Garth. Why? This whole post drops with hatred, from sneering at how the Feds won’t make profit chasing those who hide money overseas, to calling new tax brackets “hostile” (I call it a nice problem to have).

What gives? Are you angling for a return as a columnist at The Sun? Do you really think you can stop the tide of taxes that are coming, all by your lonesome? Do you think anybody cares that you complain?

#93 };-) aka Devil's Advocate on 07.24.16 at 11:55 pm

#59 Joseph R. on 07.24.16 at 9:16 pm
Garth,

You may want to add the CRA gives a 5 to 15 % reward of the recovered sum if your report to the snitch line pans out.

Are you not supposed to rat people out for true patriot love in all thy…err…ahh…? — Garth

Dang… Moral Hazard.

#94 NoName on 07.25.16 at 12:15 am

#86 Flat Tax Rate on 07.24.16 at 11:30 pm

“but myself and many of my colleagues often avoid working overtime hours, or prefer to bank overtime hours and take them as a vacation. The main reason is progressive taxation.”

——————————

I get a banking hours thing, but rest of it just don’t make any sense, especially stating a progressive taxation part, as a reason not to earn more money.
think about it this way.
50% wage increase for few hours, and less than 10% increase on its income tax.

ONT
80k marginal tax rate 32% | aft tax inc 62k
90k marginal tax rate 38% | aft tax inc 69k
100k marginal tax rate 43% | aft tax inc 75k
150k marginal tax rate 47% | aft tax inc 103k
250k marginal tax rate 54% | aft tax inc 152k

http://www.ey.com/CA/en/Services/Tax/Tax-Calculators-2016-Personal-Tax

#95 Same Same on 07.25.16 at 12:23 am

This sure sounds like a post I made a month or so ago calling on renters to snitch out their landlords to prompt the correction.

Harper increased the CRA by a couple of tens of millions and pulled out a big chunk of change. T2 is so confident that his half billion bolstering of the CRA will garner billions in new revenue that he put it in the budget as a revenue source.

This is the reality – in hot markets like TO and Van, suites add 100k to a lot more in the case of laneway houses to the price of a house. People buy houses that they couldn’t normally afford based on rental income.

Rat these people out and get rid of a chunk of buyers that should not be in the market in the first place. Help bring the prices down.

If 8% of fringe buyers in the US can cause a 32% national price decline, getting ride of 5% of fringe buyers in Canada can do the same.

I reported my former landlord who was dodgy, and assumed he was dodgy when it came to paying taxes. Saw the house up for sale 5 months later.

And no, he was not cashing in as the market had been stagnant for 5 years and he had previously bought at the top of the last price run-up.

#96 RayofLight on 07.25.16 at 12:30 am

I think Ontario taxpayers would be more receptive to paying their fair share, if they believed the government could be trusted to spend it wisely and in good faith. I believe this trust is lost. The stories of obscene waste have created a mentality of questioning why should taxpayers give them their money when they will use it wastefully and to fund boondoggles. Everything Premier Wynne looks at is tax to fiancé her ideologies. The expanded retirement plan was /is a sham. Cash flow now (tax), and no accountability in 20 years. The “Green Energy” program is a sham. Power costs more in Ontario than any other province or state in North America, where as in the 70s, Ontario the low cost jurisdiction ( and had a strong manufacturing sector). All Canadian are created, but Liberals are more equal.

#97 meslippery on 07.25.16 at 12:53 am

#31 BOOM!
Hey trucker are you going to buy a self driving truck
send it to work, you can go fishing and the hi tech truck
will send home the cash?

#98 Vampire Studies GMST 454 on 07.25.16 at 1:10 am

4 Greg – some of the things you list are merely re-distribution of taxed income. Also once benefits are spent they become taxable as income to someone else.

#99 Cars n Cash on 07.25.16 at 1:10 am

Exotic, import cars sales also a avenue of money laundering here in Vancouver, lots o $200000 cars being bought with dirty money inflow and then a couple months and couple thousand kms later they are sold off at generic dealerships. a couple of em and bingo theres a 400k downpayment

#100 Tony on 07.25.16 at 1:14 am

Re: #38 tkid on 07.24.16 at 7:09 pm

Icecap has it all wrong the stock market is the biggest bubble today not the bond market. The U.S. dollar will only weaken as the U.S. stock market crashes after the U.S. election in a kneejerk reaction by the FED and bankers to try to prop the stock market up again by killing the dollar. They did get the part about the banks and insurance companies being the wrong thing to buy or danger zone. They did mention gold would go higher but not yet. Gold, silver and platinum will be the only game in town as the U.S. dollar collapses after the U.S. election this November.

#101 Doremi on 07.25.16 at 1:18 am

Good!

#102 TRT on 07.25.16 at 1:47 am

My neighbour surely doesn’t care about evading taxes as he thinks the government is on his side.

He owns a taxi medallion and his income as a taxi driver is mostly cash. He drives for 12 hours and rents out the other 12 hours of his medallion and only accepts cash (I had a talk with one of his drivers).

He is about 50-55 years of age. His wife, 2 parents and his 2 kids live with him.

Having talked to the grandparents, they own land in India and no doubt receive lease payments that are never reported to the CRA. This maximizes the OAS and GIS the grandparents get. It also eliminates their MSP Premiums. As the grandfather was a teacher in India, he surely gets a government pension there again out of the hands of CRA. The grandparents visit India once a year for several months to collect and deposit money in interest accounts in India paying 8%. Again CRA can’t do anything.

Now, the wife works part time to keep income low. This way the kids gets maximum Childrens benefits (Now $533×2).

This guy now owns 4 houses and he openly gloats about it. How did he end up owning 4 detached houses with little reported income?? I’m sure the others he has rented out he collects cash as well. Rental discounts work great for that.

Now who is at fault? Him or CRA?

CRA has become a joke. Only local working salaried stiffs are paying taxes. What a F&:); joke.

#103 Frank on 07.25.16 at 2:30 am

How will Vancouver prices go down without rates going up?

#104 NoName on 07.25.16 at 6:04 am

@ my earlier post

i explained tax increase bit wrong, but while point is that working a bit extra and earning an extra $ is not as tax devastating unless you absolutely have no idea what to do with an extra income.

does it gets more patetic than commenting on your own post, no it doesn’t.

#105 Media sexy, but not much revenue to collect on 07.25.16 at 6:54 am

No mention of Panama? That cuts deep.

Media sexy, but not much revenue to collect. — Garth

====

What is that “not much”?

There are large number of Canadian tax payers where the “not much revenue to collect” applies, yet CRA takes all the necessary efforts to collect.

The political dishonesty is the issue, the undermining of the system by creating non-transparent, under the table exceptions that rewards, instead of punishing cheating.

Intentionally mislabeling this as ‘media sexy’ by a former CRA head makes it even more arrogant.

Undermining the legitimacy of a system comes in small steps, exactly like this before it snowballs to Brexit, Trump.

The government can use its limited resources to chase, find, audit and try to prosecute a few high-profile offenders, or vacuum the masses for non-compliant activity. — Garth

#106 maxx on 07.25.16 at 7:49 am

#12 cecil1 on 07.24.16 at 5:22 pm

“I have never understood why it is “greed” to want to keep the money you have earned but not greed to want to take somebody else’s money.”

Yup. Double standard. Just as savers are viewed and touted by business and many individuals as cheap, low-echelon losers and business as heroic supporters of the economy. No sale.

Hundreds of a percent profit on inferior quality, stupid, crappy, useless, regularly found to be harmful, rarely beneficial and mostly imported products and services is deemed admirable, whereas frugality and self-sufficiency is seen as akin to bottom-feeding.

A fat, “designer” bank account is far sexier and way more fun than a label paraded around to feign the illusion of wealth.

A fat, “designer” bank account is also quite heroic and screams that the owner legally knows his/her way around a system “designed” to suck off the absolute maximum in taxes and fees.

I’ve said this before but it bears repeating, given the continued debt gorge: Money is harder to make today and going forward and even more difficult to keep.

It will only get tougher. Getting truly fiscally fit takes years and like many other life skills, is best started at a young age.

I’ll take frugal and “greedy” any day.

#107 Saint Herb on 07.25.16 at 7:59 am

“Then there are the shadow flippers – people who deal in assignment clauses.”

Is there a paper trail for these deals? Since they are not actually selling the property to each other only the paper. Only the last guy who buys the paper, buys the property which the government would see.

Does anyone know if the government can see all the assignment flips before it is actually sold?

Of course. — Garth

#108 Al on 07.25.16 at 8:21 am

Re: #53 Tony
The Province has been talking about having the minor issues dealt by RNs at hospitals for a long time but no action as yet. This would reduce the backlog at ERs significantly.

#109 Gregg on 07.25.16 at 8:22 am

but you’re compromising the tax-free status of potential profits on your home when you eventually bail.

Could someone expand on this? We have a suite(35% of the total home) and declare our income (I feel like I am the only one). What is the risk to our primary residence status?

Many thanks……

#110 Saint Herb on 07.25.16 at 8:49 am

If a person has a principle residence and several rental homes that have been rented for 10 plus years and have little mortgages left and were purchased when houses were reasonably prices. The majority of the rental houses were paid for with rental income. Maybe claimed maybe not..

Can the owner sell the principle and keep the gain and move into the rental? The answer is YES, I assume.

The question is, can they live in it for a year or 2 and then sell the old rental house, which is now there principle residence, and keep the capital gains tax free again???

If so, then any person who wants to liquidate their rental houses, just lives in each for a few years, and they keep all the capital gains TAX FREE. That should not be allowed.. But I think that is what people are doing.. People I know…

#111 Nelley on 07.25.16 at 9:02 am

#99TRT-the Canadian public has voted for this for decades without understanding any of the implications at all. As a child, I was raised to believe in the rule of law and that the government was honest and fair. That was overall the feeling at the time even among adult Canadians. India (as one example) is one of the most corrupt and backward countries on the planet and Indian citizens naturally understand the government is totally and utterly corrupted. So this is a huge advantage for Indians in accepting and working around our growing Canadian government corruption.

#112 Herb on 07.25.16 at 9:23 am

#106 Gregg,

been there, done that. The only effect on your primary residence status is that you must declare and pay capital gains tax on the 35% of your home that was used as income-producing rental property.

#113 Sonny on 07.25.16 at 9:24 am

So why don’t you report him to CRA using the link that Garth has provided? From what you describe, it sounds like tax evasion. Let CRA investigate him. If he has reported all of income, he won’t have anything to worry about. If he hasn’t, then he will learn the hard way.

#99 TRT on 07.25.16 at 1:47 am
My neighbour surely doesn’t care about evading taxes as he thinks the government is on his side.

He owns a taxi medallion and his income as a taxi driver is mostly cash. He drives for 12 hours and rents out the other 12 hours of his medallion and only accepts cash (I had a talk with one of his drivers).

He is about 50-55 years of age. His wife, 2 parents and his 2 kids live with him.

Having talked to the grandparents, they own land in India and no doubt receive lease payments that are never reported to the CRA. This maximizes the OAS and GIS the grandparents get. It also eliminates their MSP Premiums. As the grandfather was a teacher in India, he surely gets a government pension there again out of the hands of CRA. The grandparents visit India once a year for several months to collect and deposit money in interest accounts in India paying 8%. Again CRA can’t do anything.

Now, the wife works part time to keep income low. This way the kids gets maximum Childrens benefits (Now $533×2).

This guy now owns 4 houses and he openly gloats about it. How did he end up owning 4 detached houses with little reported income?? I’m sure the others he has rented out he collects cash as well. Rental discounts work great for that.

Now who is at fault? Him or CRA?

CRA has become a joke. Only local working salaried stiffs are paying taxes. What a F&:); joke.

#114 Hilarious on 07.25.16 at 9:25 am

The government can use its limited resources to chase, find, audit and try to prosecute a few high-profile offenders, or vacuum the masses for non-compliant activity. — Garth

I expect my government to do both. Fund CRA enough to do both. Doesn’t matter if it’s a net gain or loss. The integrity of the system is far too important. The few rich people should be more of a priority precisely because they are “media sexy”. The tone is set from the top. Symbolism matters.

#115 Ace Goodheart on 07.25.16 at 9:28 am

Very true. There are huge tax losses going on right now, specifically in Toronto and Vancouver, with regard to flip sales and shadow contract assignments.

The flips are very easy to tax. The contract assignments, not so much. But really it makes you wonder whether realtors who are making up to a million or more flipping contracts are actually declaring this as business income and paying at the top marginal rate (which would be a little more than 1/2).

If they’re not, then that is a rather large problem. Most people who evade tax and get caught, have the primary problem that they can’t pay up (because they spent the money). And they can’t earn more money (because they’ll be taxed at over 50%).

#116 ww1 on 07.25.16 at 9:47 am

#107 Saint Herb on 07.25.16 at 8:49 am
Can the owner sell the principle and keep the gain and move into the rental?

=====================================

Sure. But you will be taxed on the gain when you move in.

#117 IHCTD9 on 07.25.16 at 9:54 am

Tax avoidance (and evasion) doesn’t just fall out of the sky. Prior to October 2015, I just carried on with life without paying much mind to the sticker or the taxes. When T2 got a majority, I started paying attention, but gave him some time to reveal “the truth” about his new government.

Well as we all know now, the truth (as many suspected), was a boatload of new deficit spending, debt – and the eventual taxes/fees needed to cover it.

As this sad reality became known, I decided that along with not getting my vote next election, I would treat the Lib crew (Fed+Prov.) to less revenue as well.

Since March 2016:

1. Eliminated some habits subject to insane sin taxation – biggest gain of all right here. No ciggies and booze purchased is a taxation opportunity of the highest order lost, and lost for good.

2. Buying all things used as much as possible Ebay/Kijiji. Every dollar spent outside of retail is a taxation opportunity lost.

3. Trading labour with buddies for expertise on certain repairs/maintenance/upgrades. Personal labour bartered is tax free AFAIK, so far.

4. Reduction in general spending across the board. No more eating out for lunch, 95% reduction in Timmies coffees, careful look at groceries and taking advantage of sales, careful timing of filling up the gas tanks, I even took advantage of changing sentiment in my personal hobbies and downsized into something MUCH cheaper, and way less invasive. Every dollar not spent represents a taxation opportunity lost on said dollar.

Every other guy out my way is doing something on the side – lots of trades people moonlighting, curbsiders, firewood sales, part-time roofers, scrapers, perpetual “yard sale”ers, fruit/veg stands, flowers/plants, you name it. It’s pretty tempting to just jump in the fray – tax evasion has carried on so long there is no stigma attached to it anymore.

Problem is, the CRA could never ever get all these guys doing a little here and there and end up in the black afterwards.

#118 valleyrenter on 07.25.16 at 9:59 am

Vancouver 81 clubhouse shows up as a Pokeman GO gym in Coquitlam. Good luck with that one millenials, lol.

#119 darkselling on 07.25.16 at 10:02 am

So what’s the best way to own a cottage/cabin/rec property assuming one can afford it while not being over leveraged in RE? Can you own it in a business account as an “investment” and if you eventually sell hold the profit and dividend it out?

#120 crowdedelevatorfartz on 07.25.16 at 10:19 am

@#99 TRT
“CRA has become a joke. Only local working salaried stiffs are paying taxes. What a F&:); joke……”
*******************************************

Total agreement. Where EXACTLY were the CRA audits when this gong show of a real estate circus has unfolded over the past 5-10 years in Vancouver? With everyone with half a brain asking “Where is the money coming from and who’s paying taxes on it?”
If they had auditted and publically roasted a few of the “specuvestors” flipping houses and condos a few years ago it would have given “Joe Schmoe” pause…..
Too little too late.
And now they’re going to be chasing money for years….
It has about as much deterent effect as the latest Vancouver Riot “convictions” ……years after the fact and then probation….
Wow! That scares the bejeezus out of people when most can barely remember how bad the riot actually was.
A typical canadian govt milksop response……………. Arrest, a long expensive drawn out trial, maybe convict maybe not, and the “big guys” usually walk.
Too little too late

#121 Smoking Man on 07.25.16 at 10:24 am

DNC

All out Revolt……… Lefties eating Lefties. Don’t get better than this.

http://www.theamericanmirror.com/video-ca-sanders-delegates-bang-tables-chant-bernie/

#122 BOOM! on 07.25.16 at 10:30 am

#94 meslippery

Already done. I will be ‘retired’ fully 5 years come December. No more road!!

If you want to be in ‘trucking’ today, the smart ones, sell their truck, get a brokers license, and direct (some of) the freight of some quality shippers you’ve gotten to know over the years. Filling a need… if you were ‘quality’ you will know both good shippers, and good carriers who will work with you again, again, and again.

Whether THEY want self-driving trucks is entirely their choice.

As for me, I prefer the more fallible human animals, those I understand more.

Investment is merely a phone, oh they work from a boat, too.

#123 IHCTD9 on 07.25.16 at 10:42 am

#111 Hilarious on 07.25.16 at 9:25 am

I expect my government to do both. Fund CRA enough to do both. Doesn’t matter if it’s a net gain or loss. The integrity of the system is far too important. The few rich people should be more of a priority precisely because they are “media sexy”. The tone is set from the top. Symbolism matters.
___________________________________________

Craploads of those not paying taxes on income are bottom end earners. Virtual poverty stricken, on disability and social assistance of all kinds. The city where I work is absolutely chock full of folks who don’t work, consume social assistance, live in virtual squalor, and earn money on the side at every opportunity with no taxes paid.

The government can’t even crack down on this ever increasing public support “lifestyle”, and you expect the CRA to nail these folks for a few grand in unpaid income tax?

How would that headline look? Never going to happen IMHO. Losing game no matter how you look at it.

The best plan would be limiting taxation by limiting government expense such that paying your reduced taxes is a better option given your financial situation than rolling the dice with evasion. No enforcement required.

It’s got to be logical math to pay your taxes. If the government has gone so far with taking money from the population that the middle class starts to think that they are getting fleeced, the Laffer Curve effect is already gnawing on government revenue. I’m living proof of this reaction.

IMHO, Canadians are pretty much already at maximum taxation levels. Not much more the government can get no matter what they do with new taxes and existing rates from here on in.

As Isoroku Yamamoto said:

“I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve”

So the government oversteps that invisible line in the sand with regards to acceptable rates of taxation on its population.

#124 Jack Blaze on 07.25.16 at 10:46 am

RE: Husky Oil Spill,

3 birds are ‘impacted and the CBC Goon Squad is breathless

Millions of endangered migrating birds killed every year by windmills….crickets.

#125 Noel on 07.25.16 at 11:01 am

#114 IHCTD9

1. Eliminated some habits subject to insane sin taxation – biggest gain of all right here. No ciggies and booze purchased is a taxation opportunity of the highest order lost, and lost for good.
_______________________

Sounds like you’re living a healthier and happier life thanks to the new Liberal government, congrats.

#126 Damifino on 07.25.16 at 11:05 am

#114 IHCTD9

“Problem is, the CRA could never ever get all these guys doing a little here and there and end up in the black afterwards.”
—————————-

They don’t need to get them all. They just need to bust a handful in each province, fine them very heavily and make it a big media event.

#127 prairie person on 07.25.16 at 11:36 am

I don’t know if this will add any clarity or just create more obscurity.
http://www.barrons.com/articles/chinese-buyers-plant-a-flag-in-the-u-s-suburbs-1469247016

#128 Jacob Wienstien on 07.25.16 at 11:47 am

Garth, there was a huge article in the NP this am where the RCMP are quoted saying ‘hundreds of Chinese bad guys are operating in Vancs real estate market.

Surely there were posts to this site, why the silence?

#129 Lina Santos on 07.25.16 at 11:48 am

Vampire Studies………

They are being treated as special status as they do not pay income taxes. Everyone else pays income taxes and all other taxes you mentioned from H.S.T. to property taxes so your analogy is incorrect.

Someone has earned $1,000 interest income, employment income, annuity, pension, capital gains, rental income etc. pays income tax of anywhere from 15% to 55% and then property taxes, H.S.T., car register taxes, alcohol taxes, gasoline taxes etc. etc.

All other Canadians getting GIS, WSIB, social assistance, ODSP, certain government pensions, some private disability benefits, pensions, H.S.T. and G.S.T. credit, child tax benefits etc. and other social benefits pay no income taxes, Ontario and other health taxes etc. Their income should be like others and be taxable income and subject to the same tax rules.

It is an income and a benefit they get so they should pay their minimum income taxes of 20%+ above their $10,000 or $11,000 a year income.

Heck, even investors that get dividends have to pay income taxes as anywhere from 15% to 30% above a certain income.

#130 Smoking Man on 07.25.16 at 11:55 am

#122 Noel on 07.25.16 at 11:01 am
#114 IHCTD9

1. Eliminated some habits subject to insane sin taxation – biggest gain of all right here. No ciggies and booze purchased is a taxation opportunity of the highest order lost, and lost for good.
_______________________

Sounds like you’re living a healthier and happier life thanks to the new Liberal government, congrats..
…………………….

You just got to know were the good black market deals are.

Darn, I wish I knew

#131 jess on 07.25.16 at 12:02 pm

global tax views

“Will the USA be on the new OECD tax haven blacklist?”

The G20 and OECD tax haven blacklist proposals risk becoming another whitewash (22 Jul 2016)
“This weekend G20 Finance Ministers from the G20 countries will meet in China. One of the items on their agenda will be to agree the criteria for identifying non-cooperative jurisdictions with respect to tax transparency, which the OECD has been mandated to establish. The first details of the proposals have become public and our analysis gives rise to grave concerns that the criteria are, in the same way as past attempts at blacklists, weak and ineffective. The USA in particular is likely to escape blacklisting because of the peculiar nature of the criteria. “read why @
http://www.taxjustice.net/2016/07/22/g20-oecd-tax-haven-blacklist-proposals/

http://www.g20.utoronto.ca/ministerials.html
G20 Meetings of Finance Ministers and Central Bank Governors and Deputies
Official Documents
=========
Business | Thu Jul 21, 2016 8:38pm EDT
U.S. sides with HSBC to block release of money laundering report
http://www.reuters.com/article/us-hsbc-moneylaundering-idUSKCN1012XK

#132 Shawn on 07.25.16 at 1:00 pm

Tax on rental property gain

#113 ww1 on 07.25.16 at 9:47 am
#107 Saint Herb on 07.25.16 at 8:49 am
Can the owner sell the principle and keep the gain and move into the rental?

=====================================

Sure. But you will be taxed on the gain when you move in.

***********************************
Right, when the rental is finally sold only the gain that occurred after the move in is tax exempt as principal residence.

Upon sale, the owner has to report a value on the place as of the move in date and the gain to that date is taxed when it is sold. (Not taxed on the date of the move in of course, but only when sold)

#133 Shawn on 07.25.16 at 1:07 pm

Tax Evasion or Just Working Hard?

IHTD complains:

Every other guy out my way is doing something on the side – lots of trades people moonlighting, curbsiders, firewood sales, part-time roofers, scrapers, perpetual “yard sale”ers, fruit/veg stands, flowers/plants, you name it. It’s pretty tempting to just jump in the fray – tax evasion has carried on so long there is no stigma attached to it anymore.

****************************************
Well good for them for working so hard and scratching out a living.

What proof do you have of tax evasion?

Anyhow, we allow institutionalized tax avoidance by the rich (far too many ways to count) and people are wanting to go after some guy busting his back producing and selling firewood?

#134 Vermithrax on 07.25.16 at 1:11 pm

Half my city does roofing, eaves trough cleaning, leaf/garbage/snow removal, driveway asphalting, landscaping, make a fortune in under-the-table cash, claim little to no income, collect EI or welfare all winter as “seasonal workers”, get a hefty tax return in March, and then do their annual trips to Cuba before starting the game all over again. Massive, massive blue collar scam which adds up to way more than whatever the white collars are taking. They pay no tax but in return get other peoples’ tax–fed on both ends.

#135 Herb on 07.25.16 at 1:13 pm

#107 Saint Herb and #113 ww1,

Careful! Each time you move into one of your rental properties, you are creating a “change of use” of that property, and any capital gain to that point is reportable and taxable. (You may be able to postpone payment until you sell the property.)

#136 Roial1 on 07.25.16 at 1:16 pm

#4 Gregory Saulson on 07.24.16 at 4:52 pm

I would agree that we need an overall lower income tax rate and get rid of corrupt, wasteful, instrusive spending that governments mostly Liberals, NDP do.

—————————————————————

What I love about Neo-cons is their total ability to change history to what they would like it to be (like D.T. in the US).

Remember when old Harpo took over the job in Ottawa?
No I bet you don’t because it would mean that you can’t change history, only forget it.

At the time of the change over, the books where BALANCED! (historic fact)

Harpo changed that, Fast.

Now you shift the blame to the NDP and or Liberals to meet your world view.

Typical brain dead Neo-Con.

#137 Breaking news 15% foreign buyer tax on 07.25.16 at 1:48 pm

http://www.news1130.com/2016/07/25/bc-brings-in-15-property-tax-for-foreign-buyers/

#138 15% YVR tax announced on 07.25.16 at 1:54 pm

http://www.theglobeandmail.com/news/british-columbia/bc-to-target-foreign-real-estate-buyers-with-new-tax/article31096550/

#139 Roial1 on 07.25.16 at 1:54 pm

Ask them. And find out about that 25% GST while you’re there. — Garth

But, do they have all of the “hidden” taxes that are under our “GST”.

We pay taxes on taxes.

Like gas tax with excise tax. PLUS GST. Our list is endless.

#140 Brazil ex-pat on 07.25.16 at 2:03 pm

Here is the news release for the new foreign owner tax in BC:

http://www.cknw.com/2016/07/25/bc-government-introduces-new-measures-to-address-housing-crisis/

#141 Nemesis on 07.25.16 at 2:08 pm

“But that shifty neighbour of yours with the pool and the Benz?” – HonGT

#FunnyYouShouldMentionThat,Or… #Surprise!…

[G&M] – B.C. to target foreign real estate buyers with new tax

…”Foreign nationals who buy real estate in Metro Vancouver would pay an additional property transfer tax of 15 per cent under legislation introduced today by the British Columbia government.

Finance Minister Mike de Jong introduced the tax as part of legislation aimed at addressing low vacancy rates and high real estate prices.

The government says the additional tax will take effect Aug. 2 and will apply to foreign buyers registering the purchase of residential homes in Metro Vancouver, excluding treaty lands in the Tsawwassen First Nation.

De Jong says the additional tax on a $2-million home would amount to $300,000….

…The announcement is the latest in a series of measures aimed at addressing skyrocketing prices in the Vancouver region’s housing market, which has been overshadowed by concerns about foreign buyers and empty homes.”…

http://www.theglobeandmail.com/news/british-columbia/bc-to-target-foreign-real-estate-buyers-with-new-tax/article31096550/

#142 saskatoon on 07.25.16 at 2:13 pm

there is no “fair share” with taxation.

involuntary taxation is immoral, and a violation of the non-aggression principle.

#143 Hana Smits on 07.25.16 at 2:19 pm

Pierre Elliot Trudeau Liberals added $125 billion in 16 years when he was in power. This was 1960’s, 1970’s, 1980’s dollars not in todays dollars.

This means at least a $400 to $450 billion in today’s dollars. This is about 60% of todays national debt just from Trudeau 1.

Look up your history and he was the king of Liberalism. Also look at Ontario, a more than doubling of debt under the Liberals from $135 o $300 Billion in about 12 years. Wynee and McGuinty.

Look at BC, Liberals and NDP added to 70%+ increase in their debt over the last 15 years or so. Taxes and spending, debt accumulation from Liberals and NDP are the most in most if not all of Canada and provinces.

#144 Aggregator on 07.25.16 at 2:37 pm

Premier unveils foreign buyers tax on Metro Vancouver real estate

VICTORIA – Foreign buyers of Metro Vancouver real estate will be taxed an additional 15 per cent, the government announced Monday in new legislation.

The tax would increase the property transfer tax on non-Canadian citizens purchasing homes. It would begin Aug. 2 and apply to all residential property in Metro Vancouver, excluding the Tsawwassen First Nation.

The government said the additional tax on a $2 million home in the Lower Mainland would amount to $300,000 on a foreign citizen.

The rules also apply to foreign-controlled corporations that are not incorporated in Canada or in which at least one beneficiary is a foreign entity.

This is brilliant. Tax foreigners and direct the money back to foreign developers. I love it.

This is going to backfire and send prices higher. The more the government stands behind the market to preserve equity, the more speculators will bid. It's as simple as that.

#145 Toronto prices through the roof on 07.25.16 at 2:37 pm

With a new tax of 15% for foreign buyers in BC, these will go to Toronto for now. Good luck to you people in Ontario! You will need it!

#146 BREAKING NEWS on 07.25.16 at 2:39 pm

15% tax on foreign buyers in Vancouver. Should have made it 50% since foreign buyers are non-existent.

Devil in the Details:

1. What is definition of foreign buyer?

2. What is penalty for evading this tax? Barred entry from Canada permanently?

3. Keep increasing the rate at 10% per year?

#147 Chaddywack on 07.25.16 at 2:43 pm

BC to tax foreign buyers.

http://www.cbc.ca/news/canada/british-columbia/province-to-tax-foreign-buyers-of-metro-vancouver-homes-1.3694167

I thought there was no issue Christy?

#148 Binder Dundat on 07.25.16 at 2:56 pm

B.C. to target foreign real estate buyers with new tax

The B.C. government plans to tax foreigners who buy residential property in the Vancouver area – an announcement that follows months of pressure to address foreign speculation that many have blamed for the region’s superheated housing market.

Finance Minister Mike de Jong said the 15 per cent tax, which takes effect Aug. 2, will apply to the sale of all residential properties within Metro Vancouver, excluding treaty lands in the Tsawwassen First Nation. The tax will apply to buyers who are not Canadian citizens or permanent residents, as well as corporations that are either not registered in Canada or controlled by foreigners.

http://tinyurl.com/zfud4cn

#149 Breaking BC News..15% FOREIGN BUYER TAX on 07.25.16 at 3:09 pm

http://www.theglobeandmail.com/news/british-columbia/bc-to-target-foreign-real-estate-buyers-with-new-tax/article31096550/

Video of Vancouver Real estate market here!

http://i284.photobucket.com/albums/ll36/Bigsteve87/Gifs/AtomicBomb.gif

Toronto Next! LOL

#150 Tamsen on 07.25.16 at 3:11 pm

We knew we were right about all the foreign buyers simply from our observations of this over the years in Greater Vancouver, but now they’re talking on BNN about one billion dollars of foreign money coming into BC in five weeks?!! It’s worse than we thought …

#151 IHCTD9 on 07.25.16 at 3:16 pm

#89 Hilarious on 07.24.16 at 11:51 pm
The uniform enforcement of tax law seems to upset you Garth. Why? This whole post drops with hatred, from sneering at how the Feds won’t make profit chasing those who hide money overseas, to calling new tax brackets “hostile” (I call it a nice problem to have).

What gives? Are you angling for a return as a columnist at The Sun? Do you really think you can stop the tide of taxes that are coming, all by your lonesome? Do you think anybody cares that you complain?
_________________________________________

New taxes will be levied, they will be paid by the poor, while the rich avoid, evade, or pass them on.

Government revenues will stagnate, then drop.

Don’t get mad, that’s just the way it is.

Sorry…

#152 Freedom First on 07.25.16 at 3:16 pm

#28 Smoking Man

Right on Milo! Banned from twitter for saying what he said.

Freedom of speech? Not in today’s world.

I love my life! As always, Freedom First.

#153 Victor V on 07.25.16 at 3:22 pm

B.C. to bring in additional 15 per cent real estate tax on foreign buyers in Vancouver in effort to rein in high home prices

http://www.nationalpost.com/m/wp/news/blog.html?b=business.financialpost.com/personal-finance/mortgages-real-estate/b-c-to-bring-in-additional-15-per-cent-real-estate-tax-on-foreign-buyers-in-vancouver-in-effort-to-rein-in-high-home-prices&pubdate=2016-07-25

VANCOUVER — Foreign nationals who buy real estate in Metro Vancouver would pay an additional property transfer tax of 15 per cent under legislation introduced Monday by the British Columbia government.

Finance Minister Mike de Jong unveiled the tax as part of legislation aimed at addressing low vacancy rates and high real estate prices in southern B.C.

“For example, the additional tax on the purchase of a home selling for $2 million to a foreign national will amount to an additional $300,000,” de Jong told members of the legislature.

The additional tax will take effect Aug. 2 and apply to foreign buyers registering the purchase of residential homes in Metro Vancouver, excluding treaty lands in the Tsawwassen First Nation.

#154 Grey Dog on 07.25.16 at 3:33 pm

Markham Stouffville Hospital, had to go 2 winters ago broken wrist. Entered at 11:30 finally attended to at 2:00, read X-ray as only a dislocated , so just wrapped in a cast after popping it into place using the drugs Michael Jackson said goodbye to the world with…so they tell me. Two weeks later, a follow up X-ray, tells a different story altogether, come tomorrow morning for surgery and a plate with 6-7 screws, apparently bone fragments within. I’ve lived here 32 years…never have one procedure…always two surgeries…I’ve had a few.

Good to know…any serious eye problems happen on a weekend was told don’t waste time here…go directly to Sunnybrook.

Yes, our tax dollars at work. This is why I want the CRA to tighten up any loopholes and schemes in housing sector.

Shawn, we lived below our means, and faithfully saved, and let it compound for 40 years. Certainly didn’t start out rich, but we are sure paying enough in taxes now…next year during retirement, start living off the nest egg, plus other income streams. Don’t begrudge the investors, we once were like you. You can be here too with some financial discipline and 40 years at the grindstone.

Thanks for this education Garth.

Cauliflower 2 for $4. Fresh from Ontario looks great. At the huge grocery store that has its own credit card.

#155 Smoking Man on 07.25.16 at 3:36 pm

Obviousness that most are oblivious too.

https://www.youtube.com/watch?v=gp4hMWYch1c

#156 IHCTD9 on 07.25.16 at 3:37 pm

#133 Roial1 on 07.25.16 at 1:16 pm
What I love about Neo-cons is their total ability to change history to what they would like it to be (like D.T. in the US).

Remember when old Harpo took over the job in Ottawa?
No I bet you don’t because it would mean that you can’t change history, only forget it.

At the time of the change over, the books where BALANCED! (historic fact)

Harpo changed that, Fast.

Now you shift the blame to the NDP and or Liberals to meet your world view.

Typical brain dead Neo-Con.
____________________________________________

Yep, you’re right the books were balanced back then.

Lets move on to Harpers handover to Trudeau in October 2015 – specifically the remaining 941 Mil he left for Trudeau to finish cleaning up.

I don’t know about you, but Trudeau turning that 941 Mil deficit into a 30 BILLION dollar one 6 months after being elected sure don’t seem like cleaning to me.

So, you have clearly demonstrated your disdain for large deficits, and your joyous approval of “BALANCED” budgets.

So Ro, – why don’t you tell us what you think of Justin’s handling of the books so far?

#157 Barb on 07.25.16 at 3:43 pm

BC imposes 15% foreign nationals tax on homes $2M up.

http://globalnews.ca/news/2846122/b-c-to-bring-in-foreign-buyer-tax-finance-minister/

#158 David Lee on 07.25.16 at 3:52 pm

#140 Aggregator

“… and direct the money back to foreign developers”

Do you smell Rennie? How does the puppet master and his developer buddies actually profit from this?

#159 Doug t on 07.25.16 at 3:52 pm

so far 2016 has been a hell of a year and it’s not over. Damn thankful I live where I do – multi millions worldwide would give up an arm to be anyone of us –

#160 Smartalox on 07.25.16 at 3:57 pm

@St.Herb (#107):

Your ‘Capital Gains’ are net of any capital that you invest in the property, by the way. So, if you’re looking to get out of your rental properties, invest heavily in renovations before you move in. Deduct the costs of these ‘improvements’ from the gains that will be cited, and pay reduced tax accordingly. You can actually do this for costs incurred throughout the time that you’ve owned the property.

Then sell a freshly renovated place after living in it for 1 to 2 years, and pocket the mega-gains tax free.

Sometimes, it pays to play the long game.

#161 [email protected] on 07.25.16 at 4:00 pm

#153 Barb – BC imposes 15% foreign nationals tax on homes $2M up.

Great. So now instead of buying a +$2M home, foreigners will buy multiple condos or semis to avoid the tax.

This tax is riddled with loopholes. It won't work. In fact I'll even bet it will make things worse as bidding up mid-level homes will move median prices (HPI) higher.

Foreigners are a sympton of the problem, not the cause. This was a bad move, but one needed to restore confidence in BC's political leaders.

#162 Noel on 07.25.16 at 4:02 pm

#148 Freedom First on 07.25.16 at 3:16 pm
#28 Smoking Man

Right on Milo! Banned from twitter for saying what he said.

Freedom of speech? Not in today’s world.

I love my life! As always, Freedom First.
________________________

Twitter is a private company and can ban anyone they like for any reason from using their service. This has nothing to do with freedom of speech. Milo has every right to scream his opinion from the rooftops, or distribute a newsletter, or a blog, or anything else he’d like to do as long as he funds it himself. Only if the government steps in to censor or silence him is it a violation of free speech.

Why are the people most ignorant on any given topic usually the loudest?

#163 Ole Doberman on 07.25.16 at 4:09 pm

Wow 15% tax on foreign buyers, wonder if that’ll send them scattering:

http://www.bnn.ca/b-c-introduces-15-real-estate-tax-on-foreign-buyers-1.532374

#164 Frank on 07.25.16 at 4:23 pm

Expect numbered BC companies to start buying more real estate.

Still good to see politicians taking the problem seriously.

#165 Denni Wong on 07.25.16 at 4:24 pm

#153 Barb – BC imposes 15% foreign nationals tax on homes $2M up.

I am not reading from anywhere that BC is imposing 15% on housing that’s only $2M up. Is it just me?

#166 Brazil ex-pat on 07.25.16 at 4:34 pm

#157 [email protected] on 07.25.16 at 4:00 pm
#153 Barb – BC imposes 15% foreign nationals tax on homes $2M up.

Great. So now instead of buying a +$2M home, foreigners will buy multiple condos or semis to avoid the tax.

This tax is riddled with loopholes. It won’t work. In fact I’ll even bet it will make things worse as bidding up mid-level homes will move median prices (HPI) higher.

Foreigners are a sympton of the problem, not the cause. This was a bad move, but one needed to restore confidence in BC’s political leaders.

+++++++++++++++++++++++++++++++++++++

They are adding many rules including penalties for people going around the rules with proxies.

#167 Aggregator on 07.25.16 at 4:40 pm

Remember when I told you about the powers of GG-Commander and Chief of Canada? Well as of today his governing council will now appoint the chair and vice chair of the Real Estate Council of British Columbia. Source

30 Section 80 is repealed and the following substituted:

Chair and vice chair

80  The chair and vice chair of the real estate council are appointed by the Lieutenant Governor in Council.

And just like that the government (Her Majesty) has taken over the entire real estate board of BC. Now which directional do you think they want prices to move in order to maximize tax revenue?

#168 Freedom First on 07.25.16 at 4:51 pm

#158 Noel on 07.25.16 at 4:02 pm

#148 Freedom First on 07.25.16 at 3:16 pm
#28 Smoking Man

Right on Milo! Banned from twitter for saying what he said.

Freedom of speech? Not in today’s world.

I love my life! As always, Freedom First.
________________________

Twitter is a private company and can ban anyone they like for any reason from using their service. This has nothing to do with freedom of speech. Milo has every right to scream his opinion from the rooftops, or distribute a newsletter, or a blog, or anything else he’d like to do as long as he funds it himself. Only if the government steps in to censor or silence him is it a violation of free speech.

Why are the people most ignorant on any given topic usually the loudest?

FF007

Noel… I’ll have you know that during the D-Day invasions, I captured three communist pill boxes in Dieppe without the use of a gun, even though my left knee cap was shattered and I had lost the use of my right eye.

Now who is the ignorant one Noel?

#169 Metaxa on 07.25.16 at 5:12 pm

Why are the people most ignorant on any given topic usually the loudest?

Because that is the way it always has been.

From the shaman and witch doctors of old times to the purveyors of get rich quick schemes to the proponents of any particular political view…the school bully who always got his way, the list is endless…those that exhibit the sociopathic tendencies that enable them to bravado and bully their view/product to the forefront seem to win.

Or used to seem to win…I wonder if that works anymore.

#170 Specuvestors on 07.25.16 at 5:15 pm

Love that term…

Specuvestors

Betcha they’re scratching their heads and trying to figure out how to sell into a dead market with an extra tax looming.

http://business.financialpost.com/personal-finance/mortgages-real-estate/b-c-to-bring-in-additional-15-per-cent-real-estate-tax-on-foreign-buyers-in-vancouver-in-effort-to-rein-in-high-home-prices

Foreign buyers were an overhyped phenomenon. Buying through BC corps is probably not as easy as it sounds. BC corps owners are subject to BC jurisdiction in the event of a dispute. Think China banks or judiciary looking to recoup losses from loans in China.

The buck has to stop somewhere.

Thanks BC Liberals for finally pricking this awful bubble!

#171 Metaxa on 07.25.16 at 5:15 pm

Oh, this is going to go well…
Trump is holding a Reddit AMA during the Democratic Convention.

http://www.theverge.com/2016/7/25/12270738/donald-trump-reddit-ama-democratic-national-convention?utm_source=fark&utm_medium=website&utm_content=link

#172 Entrepreneur on 07.25.16 at 5:16 pm

#139 Hana Smits…The BC Liberals have been in power here in BC for just over 20 years so why are you throwing in the NDP in the equation, trying to discredit the NDP.

Taxes are just for us Canadians, looks good. BC elections coming up. The Liberals leadership, excuse me, what leadership. Vancouver is in a mess so where WAS the leadership.

#173 Barb on 07.25.16 at 5:16 pm

#161 Denni Wong “I am not reading from anywhere that BC is imposing 15% on housing that’s only $2M up. Is it just me?”
———————————————————-

From the Global link quoted: “For example, the additional tax on the purchase of a home selling for $2 million to a foreign national will amount to an additional $300,000,” de Jong told members of the legislature.”

#174 Aggregator on 07.25.16 at 5:16 pm

#162 Brazil ex-pat – They are adding many rules including penalties for people going around the rules with proxies.

The first assumption is that a provincial government is even capable of taxing foreigners in an effective way that would stem price growth. Excerpt from the bill:

Entering onto residential property

621.  (1) The authority to enter onto a residential property may be exercised by an authorized employee of the city or other person authorized by the city only

(a) in relation to a residential property for which a property status declaration may be required under a vacancy tax by-law,

(b) for the purpose of determining the status of the property and whether the property is subject to the vacancy tax,

(c) at reasonable times and in a reasonable manner, and

(d) after reasonable steps are taken to advise the registered owner and the individual occupying the property, if any, before entering onto the property.

(2) An authorized employee of the city or other authorized person may enter into a residential property that is a private dwelling only if the individual occupying the property, if any, consents.

If they have to enter onto and into a property to see if it's occupied, that tells you they have no idea who's living there and that the new laws are imposed on an arbitrary basis. Ya they might tax a few folks here and there, but don't expect anything significant.

#175 jess on 07.25.16 at 5:22 pm

raiders

…”directors and shareholders enriched themselves at the expense of employees who have lost their jobs, and also stand to lose a substantial part of their pension entitlements. As always, taxpayers will pick-up the tab.

The fiction of UK company law is that somehow shareholders can hold directors to account. In the case of BHS, shareholders and directors were the same people.

Leadership failures and personal greed led to collapse of BHS
http://www.parliament.uk/business/committees/committees-a-z/commons-select/work-and-pensions-committee/news-parliament-2015/bhs-report-published-16-17/
======================
…”They extracted cash not only through high dividends but also through a series of intragroup transactions, carried out with companies registered in opaque tax havens of Jersey and the British Virgin Islands, all under the control of the Green family.”

http://leftfootforward.org/2016/07/bhs-scandal-six-urgent-reforms-clones/

#176 Tony on 07.25.16 at 5:28 pm

Re: #162 Brazil ex-pat on 07.25.16 at 4:34 pm

The tax will work and 15 percent will quickly be bumped up to 30 percent January 01, 2017 for all the Chinese foreigners. It looks good on them and will help all Canadians. Hopefully Canada will do what other countries do and investigate all the money flowing into Canada to see if its laundered or not.

#177 acdel on 07.25.16 at 5:32 pm

B.C. to impose a 15% tax foreign national tax “NOW”, lol, too little to late. What a friggen joke!

I swear that all these so called “educated” politicians are so far back of the curve it’s comical. It’s almost hopeless; they just cannot grasp what the ordinary person is going through, they are much beyond sheltered or just plain cowards to make the choice’s when it “WAS” needed; well, it is up to us to make that difference, unfortunately it is almost hopeless cause for the fact that 4 to 5 yr cycles and a good pension get’s in the way.

People wonder why the Yanks are progressing to Trump or that Brexit will actually be very beneficial to the Brits; most educated people on this planet at this current time are no longer persuaded by headlines or fear mongering!

#178 Bottoms_Up on 07.25.16 at 5:41 pm

#169 Barb on 07.25.16 at 5:16 pm
————————
The two million was obviously an example, not a threshold.

#179 jess on 07.25.16 at 5:42 pm

A group of women showed their contempt for Sir Philip Green (sir shitty)by flashing their bikini-clad bottoms and giving him the two-finger salute as he sailed past on his superyacht

Read more: http://www.dailymail.co.uk/news/article-3706881/This-think-Sir-Shifty-Ladies-TopShop-tycoon-cheeky-salute-glides-past-100m-superyacht-calls-stripped-knighthood-grow.html#ixzz4FSWodR5R
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#180 Bottoms_Up on 07.25.16 at 5:51 pm

#126 Lina Santos on 07.25.16 at 11:48 am
—————————-
I fail to see the point of taxing a tax benefit/credit, unless of course you are advocating for more beaurocracy and red tape.

#181 acdel on 07.25.16 at 5:53 pm

Hey Garth, by the way, although we have our differences from time to time I must say in the past week your posts have been most educational to me, thanks.

Although I like them all as well as our differences that you post of most of our opinions, bring them on, and let’s us all debate our differences; it’s called democracy, thanks again Garth, thanks for the effort, much appreciated!

#182 Nelley on 07.25.16 at 6:03 pm

#173Acdel-I would assume the plan was to make the whole thing so easy to avoid so that the BC government can turn around and say to the public that there never was a foreign money issue in the first place. They definitely didn’t want to do this-this is an attempt to appease the masses they despise-these grifter politicians know who butters their bread.

#183 Bottoms_Up on 07.25.16 at 6:03 pm

#106 Gregg on 07.25.16 at 8:22 am
——————————————
Judging by the 4-point checklist, it appears you can claim your house as a principal residence, regardless of the rental suite.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/rsdnc/wht/hw-eng.html

#184 acdel on 07.25.16 at 6:15 pm

#178 Nelley

That’s my point; so, what are we going to do about it?