The evaders

Bandit went into the gulag last week. Actually it was home boarding and the family taking him in for a few days in Toronto has a very fetching bitch. Bandit looked far too happy when we went to get him.

Notable was the proprietor’s insistence that the fee to look after our pampered canine be paid in cash. No cheque. Certainly no plastic – even though this is a professional operation, advertising widely and in business a decade or two.

“You do understand I used to be the federal minister of national revenue?” I asked. “Are you tax evaders? If so, we have a problem.” That was awkward. Of course he evades. “I’d just have to ask you for HST if you wrote a cheque,” he said. So I wrote a cheque.

Paying cash is endemic, in some places ubiquitous. Consumers think they’re smart or saving something when they give it to renovators, gardeners, cleaning ladies or dog boarders. The act allows these enterprises to have unreported revenue so they can flow money into personal use and escape paying corporate or income tax. Lower reported sales also means the guy fixing your taps or cleaning your gutters doesn’t remit as much HST, while still claiming all of the input tax credits on his supplies. It’s sometimes hard to see why a homeowner – paying everything out of after-tax dollars – would assist someone else in making income without paying their share. But, hey, sticking it to the man is cool, right?

So all this cash-for-services thing has resulted in a so-called underground economy now worth between $45 and $50 billion. Most of the cheating is carried on in just three industries – home renovations (the biggie), retail and hospitality. In restaurants, for example, workers often make more in tips than in wages, and declare nothing. That’s evasion. It’s illegal. Also against the law is paying any regular employee in cash. You must report the income along with the employee’s SIN, even if nothing is withheld for tax.

A major new source of evasion: collecting rent in cash from your residential suite. With an estimated 54% of homeowners in the Lower Mainland leasing out basements, laneway houses or bedrooms – plus playing the AirBnB game – breaking the law is mainstream.

In the past I owned four restaurants with over a hundred servers, bartends and chefs. It was a nightmare. Every single employee wanted to walk out at the end of the shift with pockets of cash, and recoiled at my plan to record all tips, distribute them evenly then issue everyone with a tax slip. Never again will I employ wait staff. Or touchy, temperamental chefs who think they’re food artistes, above taxation. Hundreds of thousands, perhaps millions, of working people in Canada believe they can cheat, game and rob the system. The clever ones justify it as revenge for the government wasting their money. The rest call it greed.

So now the country is short about $20 billion a year in tax revenues and has $600 billion in accumulated the debt. Most provinces are in even worse shape. Politicians have spent the money people demand – sending them cheques for having babies, for example, or just because they get old – without being able to cover that spending with tax revenues.

You can see the result.

Ottawa has raised taxes by more than $2 billion on wealthy income-earners through the creation of a new tax bracket. It’s in the midst of launching an assault on small businesses, doctors, self-employed professionals like lawyers, vets and IT guys. This week the CRA told PayPal it has to cough up data on every dollar that’s gone through the system in the last three years. That potentially affects 6.4 million customers, including about a quarter-million retailers. It comes on the heels of similar CRA fishing expeditions when it forced eBay and Square Canada to give up customer transaction records.

The revenue cops are also chasing condo-flippers who recorded profits as capital gains instead of heavily-taxed income. And now, with evidence in the Paradise Papers of corporations using offshore accounts in a completely legal fashion to harbour after-tax income – public pressure has the CRA chasing its tail across the Caribbean.

Meanwhile in the House of Commons, when confronted with the news his own party fundraiser was named as a Pardiser, the prime minister shot back: “we are fully committed to fighting tax evasion and tax avoidance.”

Great. Except tax avoidance is legal. Every time someone puts a dollar into an RRSP or a TFSA, opens a spousal plan, loans money to their adult children to invest or structures their portfolio to make capital gains instead of interest, they’re avoiding tax. On purpose. Legal and deliberate. Just like the rich guys parking money in a jurisdiction where taxes are lower.

This pathetic blog has detailed a host of methods to avoid tax, from getting funds out of a RRIF without penalty, to leveraging an RRSP homebuyer’s loan into a bigger down payment, to splitting income with your kids or simply using the dividend tax credit or capital gains tax exemption. This will continue. You have an obligation to your family not to pay more than your share. Just as we all have an obligation to pony up what we owe.

Bandit included.

234 comments ↓

#1 dakkie on 11.15.17 at 6:00 pm

Trudeau shafts veterans but gives terrorists millions: Canada is funding terrorism

http://investmentwatchblog.com/trudeau-shafts-veterans-but-gives-terrorists-millions-canada-is-funding-terrorism/

#2 Lost...but not leased on 11.15.17 at 6:06 pm

Phyrrzzt ?but not last!

#3 Victoria Real Estate Update on 11.15.17 at 6:09 pm

BEYOND IRRESPONSIBLE

“I have no particular regrets. The (2006 US) housing bubble is not a reflection of what we did, as it is a global phenomenon.” – Alan Greenspan

Housing bubbles are not new to the world in the past 10, 20, 50 or even 200 years. They’ve been around a lot longer than most could imagine.

And no real estate bubble in history has had a soft landing. A soft landing is always predicted by the policy makers who are responsible for the bubble their policy created. But, as Mr. Market has proven with every housing bubble the world has seen, soft landings are impossible after house prices have been pushed to extreme levels and then beyond that by reckless and irresponsible lending practices, mortgage fraud, extreme speculation, etc.

Perhaps some backtracking is in order here. It is possible for a bubble market to achieve a soft landing – but it only happens in the wishful dreams of Canadian realtors, bankers, economists, policy makers, etc.

In reality such an ending isn’t even remotely possible.

BIG PRICES COME FROM BIG DEBT

How big is Canada’s housing bubble? To quantify it we can compare it to the 2006 US bubble.

And Canada’s bubble wins the size competition hands down.

Back in 2011, the Economist declared “Canada’s Housing Market More Overvalued Than U.S. At Its Peak” and Canada’s housing bubble has grown an alarming amount since then.

For the longest time (until 2006), Canadian and American house prices were approximately equal. Then suddenly, by 2013, house prices in Canada were almost 60% more expensive than in the US (first chart).

As Canadian house prices skyrocketed past those in the US after 2006, Canadian household debt also skyrocketed past that in the US (third chart).

The connection is undeniable. It takes extremely unusual and dangerous amounts of household debt to push house prices to extremely unusual and dangerous levels.

DON’T BLAME IT ON THE RAIN

And Canadian policy is to blame.

For example, the minimum down payment in Canada is 5% (2.5% for some first-time buyers in BC, which is almost zero) while the minimum down payment in the States is 20%. Obviously this makes it much easier for Canadians to qualify for mortgages (and bigger mortgages) in Canada than Americans can in the US. Canada had 0-down, 40 year mortgages for some time after 2006 as well.

Having lax mortgage lending standards is obviously destructive enough, but Canada’s poor enforcement of those shoddy lending standards over the past decade-plus has taken this irresponsibility to another level. And it has enabled Canada to take its housing bubble to the next level, and the level after that…

And CMHC has been behind it all.

For several years now and well before 2006, Canadian lenders haven’t hesitated to hand out mortgages to as many qualification-challenged applicants as possible, knowing that CMHC has their back 100% as lenders in the case of default.

In the US, American lenders would, perhaps, reject a big chunk of American applicants (with similar incomes as Canadian applicants) for a similarly priced house, based on bigger down payment requirements, etc. and would probably be less likely to suggest mortgage fraud as an option (something that Canada is known for). This is how Canadians get into more expensive homes in Canada than Americans do in the States, despite similar income levels.

THE SHOW IS ONLY HALF OVER

But this level of irresponsibility comes with a big price. And Canada hasn’t paid the price yet.

Unfortunately for Benny Tal (CIBC) and other Canadian “it‘s different here“ cheerleaders, extreme price levels reached in housing bubbles are always only temporary. Fundamentals (such as incomes) can only support price levels that are in line with the long-term mean (that was established before lax lending standards were implemented). And prices always revert to the mean.

If you only recently started to pay attention to Canada’s bubble, you missed the first half of the show – the boom years. But don’t fret, you’ll still be able to watch the second half of the show – the bust years.

#4 M on 11.15.17 at 6:12 pm

..I always pay my mechanic in cash. Transmission replacement goes less than half price the dealer’s.
Cash is a form of resistance against governments that waste 2 billion $ to bomb a far away country with 6 Crappy planes:

https://en.wikipedia.org/wiki/Operation_Mobile

http://nationalpost.com/news/canada/libya-mission-cost-seven-times-what-the-government-said-it-would-documents

Remember MacKay ? Same moron that dumped dough in that F35 failure ?

https://www.youtube.com/watch?v=RwA4RaaJSeI

Watch those generals lying prime time ! Watch those politicians lying prime time !

Every dollar we can block from getting into gov coffers diminishes the errors in judgement the governments do to the detriment of their citizens.
Show me ONE good thing Canadina government did in the last 10 years that was not FORCED to do.
..and Canada gov is mikey mouse compared to others..

#5 Doug t on 11.15.17 at 6:13 pm

Tattoo shops – cash
Weed shops – cash

We have been slowly weaned from using cash by the banks and government – they want us controlled and they want to know what you are doing at all times

RATM

#6 Editrix on 11.15.17 at 6:15 pm

With all the searching under rocks for any money the CRA can find, it seems our country must be in a financial mess. They know that they’ll scoop a whack of cash from the pot legalization. Perhaps legalizing prostitution is the next step. I’m all for that over legal pot. (This is a woman typing.)

#7 Muttley O'Toole on 11.15.17 at 6:16 pm

Tax evasion is a problem world wide.
What are the chances within our lifetime cash will be gone and all payments/receipts of money are made by card?

#8 Ronaldo on 11.15.17 at 6:18 pm

I once said to someone, ”Money is the root of all evil”.
He responded by saying, ”No it’s not, you don’t see millionaires going around robbing banks, do you?” I thought about that for a second and then replied, “Not so sure about that considering what happened with the banks and their CEO’s back in the 2008 GFC”.

#9 jeff on 11.15.17 at 6:24 pm

CRA does not have computer code that detects when two people (who are not in a couple) have the same address. If they did, they could verify that one of the two is paying the other for rent. Of course, in 2017, this would be easy to do, but CRA hasn’t done it.

At my office, in Toronto, plenty of people pay cash to rent basements for 10-20% cheaper. Why would a landlord declare this when there is only a tiny chance to get caught. CRA agents are not knocking on many doors in Toronto, to see who lives there.

#10 Bob Dog on 11.15.17 at 6:24 pm

I think most canadians have lost faith in the system and totally lost faith in the corrupt puppet government. When the best occupation in the land is real estate speculation, only a fool would work hard and pay their taxes. I for one am proud of the fact I have collected EI for 3 of the last 5 years. I enjoyed the sunshine, lost weight and have the same standard of living I would have had if I worked my ass off.

People have simply given up. The system is rigged and they are taking a ‘catch me if you can’ attitude.

This all hinges in the fact that interest rates have been kept at 1% for 10 years. An act of financial terrorism from my point of view.

Jail some bankers and politicians and I believe the attitude of Canadians will improve. Until things normalize I simply don’t care if the economy fails or succeeds.

#11 ShawnG in TO on 11.15.17 at 6:25 pm

uber and airbnb should issue tax receipts too

#12 The real Kip on 11.15.17 at 6:26 pm

A week ago this blog was bashing Bill Morneau and Justin Trudeau over double standards related to paying fair shares of taxes. It’s hard to blame working class Canadians for seeing it as it is and paying cash where possible. I do it EVERY chance I get.

#13 M on 11.15.17 at 6:26 pm

#1 dakkie

..For the record: Omar Khadr was/is not a terrorist.
Troops in an undeclared war fall from the sky in his village.
NOT Canadian troops. He took part in the fight just like your son will jump to defend you in a bar brawl.

Let’s talk ISIS baby:

http://www.independent.co.uk/news/people/julian-assange-clinton-foundation-isis-same-money-saudi-arabia-qatar-funding-a7397211.html

Let’s talk about our brave new world institutions:

https://www.thestar.com/news/canada/2016/07/29/pair-found-guilty-in-bc-terror-trial-to-go-free-after-judge-rules-rcmp-entrapment.html

The tragedy of the so called “war on terror” conceived to take your rights away.

The real terrorists are the governments that fight their own “war on terror” invention. With OUR money.
I’m supposed to be robbed blind…I am not supposed to be stupid though.

PS
Mr Levant is reaching. Mr Levant is a man with an agenda. Forreign of course:

..from the horse’ mouth…so to speak..
https://www.haaretz.com/world-news/americas/1.778988

..and “the other” horse..:
http://nationalpost.com/features/inside-ezra-levants-rebel-media

#14 Cecil Henry on 11.15.17 at 6:27 pm

People evade because the are taxed too much.

Nobody evades paying at the grocery store. You only buy what YOU want.

The answer is to get rid of INCOME tax. Its theft. And didn’t exist until early 20th century. Now its endless parasitism

Then allow people to pay for what they want, just like in any other business. Why is government so special, that they can use force to MAKE me buy their ‘benefits’.

The last thing government wants is to have to EARN their value for citizens. Which is why this must change.

#15 Lost...but not leased on 11.15.17 at 6:27 pm

RE: Tempermental chefs/food artisites

Was recently watching a YOUTUBE video, and one part had the many common reasons for downfall of empires.

One of the more intriguing ones was at the last gasp( after Bread and Circuses) the empires would promote “Celebrity Chefs”…

..the Time Is Nigh?!?

#16 under the radar on 11.15.17 at 6:29 pm

Having a compliant populace means leading by example. It starts from the top down. Profligate spending by government does not exactly inspire people to always report. Lets see, Phoenix payroll system estimated to cost a billion dollars. Ontario’s hydro mess . Minister’s abusing the public purse, be it 16.00 for orange juice or former Alberta premier, she should be jailed for what she spent on creating her own personal lair on the top floor of a government building.

#17 Oakville Owner on 11.15.17 at 6:29 pm

Going to be real interesting if/when the government decides to work only with digital currency !

Perhaps it won’t be Bitcoin but I’m sure the government and CRA would love to use the technology to replace all cash.

If the extra revenue generated comes from those “working the system” I’m all for it. Perhaps they would even consider lowering taxes so no one pays more then 50% of their income! That is criminal in my books!

#18 raisemyrent on 11.15.17 at 6:29 pm

Amen. I refuse to eat at cash only places. I’ve had to pull out of regular work lunch things just because they went to places in Richmond and other merchant rich areas where cash only is de rigueur. Even some places near my current work offer cash discounts. It’s honestly like $0.50.
Sad part is the look in my coworkers face when I joked (though not really) that if I were To go back to a cash only place in question it would be with a CRA officer.
Always ask for receipts. Check for tax. Do not enable tax cheats. Pay someone else to fool you. Heck…

#19 Expat on 11.15.17 at 6:30 pm

“With an estimated 54% of homeowners in the Lower Mainland leasing out basements, laneway houses or bedrooms”

Anyone know where this statistic is from?

I’m just curious. I would like to read the news article or survey that it came from because that is a crazy number. Thanks!

#20 Democracy Is Mob Rule on 11.15.17 at 6:31 pm

The Shock of Sweden’s Housing Market is Hitting the Country’s Currency

the biggest property market in Scandinavia risks sinking into a correction.

The evidence of price declines was so worrying on Tuesday that it contributed to a 1.5 percent slump in the krona against the euro.

Swedish housing prices fell 3.0% in October, the biggest monthly decline since 2008

https://www.bloomberg.com/news/articles/2017-11-14/sweden-s-housing-shock-hits-krona-leaving-riksbank-few-choices

#21 rikk on 11.15.17 at 6:31 pm

I earn $14, I pay $5 tax, I leave a $9 tip … the tax has been paid, end of story, my opinion … not the server pays $2 tax on the already taxed $9 leaving $7, the server gives his/her dog $7 for dog chow, the dog pays … and on and on …

#22 FOUR FINGERS WATSON on 11.15.17 at 6:32 pm

Omar Khadar gets 10 million and my taxes pay for that ? Hahhaaha…..Will you take cash?

#23 Blobby on 11.15.17 at 6:34 pm

I once dated a server, she used to whine about how little money she earned.

But fact was she wasn’t claiming tax on her tips.. 30% of tips were reported (its then”done thing” in industry apparently, tell the tax man youve collected something, so they leave you alone). I worked out one year when I was helping her with her tax return, because of this she was actually earning more per year than I was.

.. I stopped paying for everything after that, she left me not long after.

#24 bring_it_on on 11.15.17 at 6:34 pm

This underground economy flourishes when people have strong mistrust in their governments. I can certainly understand this dog-eat-dog sentiment. Perhaps if governments work together internationally to significantly reduce offshore havens, so that Apple, Nike, etc.. and all the Paradise people, no longer have their obscene and immoral “tax savings”, the average Joe might have a conscience before paying some home reno guy under the table in cash in order to get a small reduction.

#25 Dave on 11.15.17 at 6:35 pm

In Vancouver, most drug dealers are now developers. Pay the trades in cash and thus launder their money. Underground economy is huge, the more you tax the more people will find ways to hide their money

#26 Debtslavecreator on 11.15.17 at 6:36 pm

The CRA will catch most of these people in due course
While we pay far too much and governments are completely out of control, tax evasion is wrong and illegal. The governments best defence is 1) eliminate 95% of all credits and deductions, simplify the code radically, 3) eliminate income tax on the first 50k for all, 4) slowly raise the HST up to 17-19% and share with province and cities, then after slowly cut govt spending
The best way is to completely overhaul the system and make it easy to enforce and reduce the incentive
Tax evasion is rampant and illegal but the approach being taken is totally inefficient and poor
But remember – the CRA will eventually catch you and once they do it’s lights out. You will be totally ruined.

#27 Rick on 11.15.17 at 6:36 pm

So, you’re upset. We use cash and your buds have a hard time knowing where we spent it…tough!

#28 Willy H on 11.15.17 at 6:40 pm

Tax evasion is an epidemic in the service industry but I don’t believe the CRA is about to crack down. Just too darn messy in this sector.

As for input tax credits, I wouldn’t be surprised if many all cash operations are leaving these foolishly unclaimed.

The government could have recovered some of this if they had left the GST at 7% for those of us to play by the rules or the tax evaders that are forced to source inputs above ground.

The political GST cuts pulled $14-$17 billion per year out of government coffers.

#29 Democracy Is Mob Rule on 11.15.17 at 6:41 pm

Sweden is the most cashless society on the planet, with barely 1% of the value of all payments made using coins or notes last year, compared to around 7% across the EU and in the US.

several of the banks no longer offer cash deposits or over-the-counter withdrawals.

“This system could easily be disturbed or manipulated. Why invade us when it’s so easy? Just cut off the payment system and we’re completely helpless,” says Mr Eriksson.

The 71-year-old is the face of a national movement called Kontantupproret (Cash Rebellion), which is also concerned about identity theft, rising consumer debt and cyber-attacks.

http://www.bbc.com/news/business-41095004

#30 Monnaye on 11.15.17 at 6:42 pm

Money is not the root of all evil.
The lack of it is.

#31 Howard on 11.15.17 at 6:45 pm

It’s sometimes hard to see why a homeowner – paying everything out of after-tax dollars – would assist someone else in making income without paying their share. But, hey, sticking it to the man is cool, right?
—————————————

They would gladly pay cash to avoid paying the tax that the service provider would have to pass on, just as your dog boarder did when you paid by cheque.

Or am I misunderstanding?

#32 X on 11.15.17 at 6:46 pm

Personal pet peeve is when I go into a restaurant that is cash only….

#33 tomohawk52 on 11.15.17 at 6:49 pm

The tax system seems to me like an IQ test. Smart people are going to find ways to legally avoid paying taxes, or hire other smart people to do it for them.

#34 Marcus on 11.15.17 at 6:50 pm

Squarecash today just started a potential rollout of adding Bitcoin to its platform. With 7.5 million users this will propel the digital currency even higher by the end of the year. this combined with the CME starting trading with Bitcoin will lead to $10,000 Bitcoin by the New year.

#35 Adrian on 11.15.17 at 6:50 pm

The best way to rob a bank is to own one ;-)
***
As for tax evasion, it’s only the people who have plenty of money who can afford to pay someone to help them avoid taxes. It may be legal, but does that make it right?
***
And finally, so long as you keep complaining about sovereign deficits, I will keep repeating myself:

At the macroeconomic scale, one person’s expenses are another person’s income, and sectoral balances mean that in order for one sector to save another must run a deficit. Unless a country is running a significant trade surplus to outsource its money creation needs (e.g. Canada during the ’90s, or Germany today) sovereign government deficits are necessary for the proper functioning of a growing capitalist economy. Professor Steve Keen explains here:

How Austerity Works
https://youtu.be/0y5rP56OX78

You may also be interested in this brief (~3 minute long) explanation by David Graeber, author of “Debt: The First 5000 Years”:
https://youtu.be/LxJW7hl8oqM

#36 Democracy Is Mob Rule on 11.15.17 at 6:51 pm

The weakness in Sydney’s housing market is spreading across Australia

Based on the early evidence, it looks like prices in Sydney may fall for a third consecutive month in November, building upon those reported in September and October. Listings in Sydney have surged by 20.1%

Like Sydney, prices in Adelaide and Perth have also gone backwards over the past month, falling 0.1% and 0.2% respectively.

https://www.businessinsider.com.au/sydney-house-price-falls-impact-2017-11

#37 Nonplused on 11.15.17 at 6:52 pm

I guess it could be significant because even if a waiter was only earning $30,000 a year the government would want about $5,000 in tax, CPP, and EI.

https://simpletax.ca/calculator

The CPP & EI amounts are pretty significant for lower income earners. But you have to pay them to get them so cash waiters wouldn’t find they had much in the way of EI if they lost their job.

OAS is really the only freebie.

However, the higher the tax captured by the government, I have a feeling the more I will have to pay for services. Do I have to report money I pay my baby sitter? It’s hardly significant over the year. I’ll think I’ll just pay cash and let her figure out if she’s claiming it. What about my cleaning lady? Sure, that can add up to $3,000 a year or so but again I think I’ll let her handle the paperwork and take her chances with Rev Can. I don’t even know how much she makes in total I don’t know how many clients she has or what she charges them.

I pay my before/after care via e-mail. I suppose the government will be tracking that soon too. I assume the after care reports the income because that’s a big enough operation to be noticed.

I notice a lot of businesses are using these card readers that plug into headphone jack of a cell phone these days. That is super handy but I bet it’s all tracked. My plumber has one of those but again I’m going to leave it up to him to report his income. I don’t think it’s my business.

Now, if I have an employee, which I do (me), then of course I have to issue T4’s. Learned that the hard way one year. I didn’t issue myself a T4 even though I reported the taxes correctly and boy did Rev Can get mad! $1000 worth of mad. They let me off on the first occurrence because I had paid the taxes, but after that I decided to get an accountant in case there were any more forms I had to send myself that I didn’t know about. That, of course, also costs $1000/year but at least it’s deductible.

I’m not sure I agree with taxing tips though. Are they income? Or gifts? In theory the business transaction is what’s on the receipt.

I suppose we aren’t too far away from the point where every single transaction will be going through a computer and at that point the goal of total taxation of every transaction can be realized. Until that day comes I will pay cash for small transactions where possible and leave it to the recipients to be honest with Rev Can. Cash doesn’t have all the transaction fees. You can’t even email money for less than $1.50. Credit cards typically charge the recipient 2% which is why you can only use Master Card at Costco. Paying 1.5-2% on every transaction adds up after a while. And of course that too is baked into the price, which is why you get Canadian Tire money if you pay cash but not if you use Visa.

#38 wallflower on 11.15.17 at 6:53 pm

Cash economy evading taxes is huuge. I figure at least 20% of overall economy. I know of two businesses that pay all their employees in cash, recording nothing to any payroll register. Nothing. And, just as mentioned, service providers dealing in cash only… huuge. Think about this – when my spawn was going through organized youth sports, all the payments were cash to coaches and referees. Some of these guys were hauling it down every year… cash cash cash.

#39 I’m stupid on 11.15.17 at 6:54 pm

Or you leave the country and let others work with your sin number. The illegal worker pays the taxes and after the min time to collect EI benefits you collect. Rinse repeat. Until one of those workers dies on the job and everyone gets charged. I’ve seen that happen. I’ve realized honesty is the best policy.

#40 Smartalox on 11.15.17 at 6:55 pm

@Ronaldo: you have it wrong. The saying goes: “The LOVE of money is the root of all evil”.

It’s about greed, not about success; having money isn’t a problem. If you have it, good for you. If I have it, good for me.

But if you love money so much that you take it without earning it, there’s going to be trouble.

I went with a friend of mine to buy a used car earlier this year. The seller was a shade-tree mechanic, fixing cars out of his home when he wasn’t working as a long-haul truck driver.

My friend was paying with cash, and as they filled out the paperwork to transfer the title for the car, the seller offered to write half the price down on the form, to reduce the tax bill by a hundred dollars or so, and pocket the difference.

“Why fork it out to the government?!?” he asked, “they steal enough already!”

But my friend is a lawyer, and he explained that he’d lose his license if he were caught in a fraud, so it wasn’t worth it to him – he’d rather pay the tax.

I just shook my head, and thought about how I use some of the completely legal means Garth has described to avoid paying THOUSANDS of dollars per year in taxes – and this guy was prepared to commit a felony to evade $100 tax – and feel like a rebel hero while doing it.

#41 Bruce on 11.15.17 at 6:55 pm

I’ve worked for a government for eight years. I estimate that I’ve seen over a million dollars spent on failed projects (developing resources and staff salary). Some projects never get off the ground others are run for a year or two and then scrapped. This is only in one small department. I can’t imagine what it would be if you extrapolated this for all departments. I also live in a regional area and find it quite alarming that every other Wednesday is ‘payday’. There are lines at the beer store and parties going on every other Wednesday night. Gotta love watching your tax dollars being drunk away and literally being flushed down the toilet.

#42 TurnerNation on 11.15.17 at 6:55 pm

Consumers have a right to play dumb and mind their own business – which is their money:

“Would you like to pay cash”?

“Oh will I get a better deal?”

“Yes”.

Hand it over. You’ve done nothing wrong. A price tag in the laws’s eyes is defined as “an Invitation to Treat, not a Trick.

This applies more to the country folk. Here in the big city we just tap our credit card and move one.

Called my bank which I never do, of course they offered me more crack/money – would I like an increase in my line of credit?

#43 rainclouds on 11.15.17 at 7:00 pm

When people are barely hanging on financially with the highest debt load on record in part encouraged by government policies on things like housing.(the other part is their own inability to do basic math)

Chicken and egg. Incompetent behaviour at the top ( Offloading debt to crown corps to get it off the books is an interesting twist of kicking the can down the road.)Voters watching Governments spend money they don’t have, on initiatives they have no clue about, (Phoenix, Gun Registry, capitol builds ) or invent new taxes (carbon) and invent new user fees instead of cutting costs.Their actions fosters disgust?resentment?Anger? Avoidance…

When Governments decide to show an ethical and fiscal backbone perhaps the unwashed will too.Using the cudgel of CRA at this juncture will simply drive more businesses underground.

25% fed revenue goes to servicing debt
50% of provincial goes to health care/ 30% to education
Not one politician of ANY party has the courage to stand up and suggest perhaps we need to revisit how finite revenues are spent? Nope. so on we go hurtling toward fiscal ruin, nobody driving the bus…….. and you wonder why people avoid giving them more of their money?

You are correct in your assertions but perhaps not in the analysis of the underlying reasons.

#44 Smartalox on 11.15.17 at 7:07 pm

It’s been a while since I lived in Ontario, but I recall that the provincial tax return offered a deduction for rent paid, provided that the person filing the return listed the name and address of their landlord, and the address of the property that they were renting.

It was all hand-written, and not machine-readable, but it meant that the government had a record of:
– Rental income
– Paid to whom
– Their address
– The property that was rented

The feds should do this: offer a rent deduction – offset by earnings so that wealthy renters like me don’t take subsidies from people who need it – and build a database of who’s renting what to whom, and where.

When the rent stops coming in from a particular property, ask why? Was the investment property sold? Were capital gains paid out? Did members of the owners’ the family move in? Great, just send a letter.

Compliance would be high, because the information is reported by those that pay rent, not those that collect it.

#45 WIN not lose on 11.15.17 at 7:09 pm

#8 Ronaldo on 11.15.17 at 6:18 pm
and Garth for the picture

Far be it for me to correct Garth’s picture, or the other blog dogs.

Money is NOT the root of all evil.

Correction:

The LOVE OF MONEY is the root of all evil.

Found in the best seller of all time in the New Testament, 1 Timothy 6:10

Does love lead to pathology?

Who knew?

#46 dr. talc on 11.15.17 at 7:10 pm

HST is too broad. On new homes, buyers don’t pay it because they don’t have it, the builders pay it even though it’s a buyers consumption tax. It gets amortized into the price of the house and paid over 25 yrs. So how moral is that? an amortized tax- a tax so broad that on homes it is noncollectable, so builders create a work around, is that good tax policy?

#47 Democracy Is Mob Rule on 11.15.17 at 7:12 pm

In the terminal collapse of the Roman Empire, there was perhaps no greater burden to the average citizen than the extreme taxes they were forced to pay.

In the 5th century, tax riots and all-out rebellion were commonplace in the countryside among the few farmers who remained. The Roman government routinely had to dispatch its legions to stamp out peasant tax revolts.

Valentinian III in 444 AD decreed that all transactions be conducted in the presence of a tax collector.

http://www.businessinsider.com/all-transactions-to-be-conducted-in-the-presence-of-a-tax-collector-2012-4

#48 crowdedelevatorfartz on 11.15.17 at 7:12 pm

Eventually the govt will realize the removal of cash is the easiest way to cut down on tax cheating.
But people find a way.
India’s overnight outlawing of higher denomination Bills seemed to cause quite a fuss last year but things eventually settled out.

http://www.google.ca/url?url=http://money.cnn.com/2017/01/04/news/india/india-cash-crisis-rupee/index.html&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwicyuDK5sHXAhUJ4GMKHQGtCOsQFggaMAE&usg=AOvVaw3pfCJ1v-lvY-tegzCCMEPn

The average Canadian rarely handles $100’s or $50’s any more. The last time I took some to the bank I was just about photographed and fingerprinted.
Wouldnt take much to wipe those out. And who would we inconvenience? Drug dealers?

The $1000 bill has quietly been withdrawn.

http://www.google.ca/url?url=http://nationalpost.com/news/canada/the-hunt-for-canadas-1000-bills-there-are-nearly-a-million-left-most-in-the-hands-of-criminal-elites&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwi4mvGA58HXAhUL0GMKHZfPBEYQFggUMAA&usg=AOvVaw1JW1vco6BONGAUxTYWN5-M

I once saw a briefcase with 15 of them in it. Waitress almost dropped her tray of beer.

Not to worry folks, A cashless society will be coming to a socialist country near you.

#49 Smartalox on 11.15.17 at 7:13 pm

I recall living in Quebec, revenue QC used to take out billboards that said “Travail au Noir – C’est du Vol!”

“Working in the black market is theft!”

Of course Quebec is wise to the problem, and just taxes service people and wait staff on a % of their stated income as a tax on gratuities. On top of their calculated tax owing.

#50 Smartalox on 11.15.17 at 7:16 pm

It’s sometimes hard to see why a homeowner – paying everything out of after-tax dollars – would assist someone else in making income without paying their share.

You assume, of course that the homeowner is going to pay tax on the gains they received from fixing up and then flipping the property.

#51 The real Kip on 11.15.17 at 7:16 pm

Many restaurants that want cash only is because of gouging credit card companies that ping their own businesses 3-5% of priveledge of having the credit card machine at the business.

Personally, I use my credit card for everything to get my 1% cash back, pay the full bill at the end of the month so I pay $0 interest and who cares if the business losses 3-5% on every credit card transaction. First choice is cash cash cash with no bill, second choice is credit card. It’s just my way of saying thanks to Bill Morneau!

#52 WelcometoSlurrey on 11.15.17 at 7:17 pm

Houses and suites. I’ve mentioned it before. A friend of mine has had a coach home since 2006. Coach home and basement suite cover more than just the mortgage, they are only left with some of the other carrying costs of the home. Their living costs are next to nothing. No one is coming after them and everyone else does this too………no one is coming after the others. Is renting really cheaper than owning ? ………… the debt is being paid by the renters.

#53 conan on 11.15.17 at 7:17 pm

People can not make it playing by the current rules and so they take cash. Probably means the end is near for cash.

Next restaurant venture try bringing the main cook in as a partner. They run the kitchen and share in the profits.

Heard this the other day, Self employed, net 90 K. Open 3 different numbered companies and each one declares 30K.

Does this work? Someone tell me no.

#54 Nonplused on 11.15.17 at 7:20 pm

Also I think one of the stronger arguments for legalizing marijuana is that way it can be taxed like tobacco. I wonder how much money that will be worth? Apparently it’s been a huge windfall in Colorado.

It is also a good argument for legalizing prostitution. It’s going to happen anyway. What about all those “Sugar Babies” on SeekingArrangements.com? I bet they are not paying taxes. Although I bet if they had to the “Sugar Daddies” would just have to pay more for the “companionship”. This in turn would probably mean they can afford less “companionship”. Somehow it seems we are wandering into weird territory here, taxing people based on whom they bump uglies with but I suppose if there is money changing hands….

Anyway I don’t know how much extra revenue the government would get by capturing the black market. Even if it is $50 billion large at a 20% effective rate that’s only $10 billion, and although that is real money (Canada could buy an aircraft carrier!) it would just mean less spending in the economy and thus less taxes paid by the legitimate operators who are eventually getting the money, probably at higher effective tax rates. Thus, it will slow economic activity, as all taxes do.

#55 Democracy Is Mob Rule on 11.15.17 at 7:22 pm

Rome had a well-developed tax system, and sought to tax each of the rich, middle class and poor. And, is often the case throughout history, the rich class found a way to escape taxation.

When the imperial administration was increasingly unable to extract tax revenue from the largest estates, they raised taxes on the poor and middle class.

The taxes became so burdensome that the Roman middle class all but disappeared, and many indebted citizens who were not wealthy enough to bribe tax collectors instead were forced to flee.

They ran away to find refuge in the large, de-facto tax exempt, estates run by the very people whose tax avoidance caused their over-burdensome taxes. This created a system of indentured servitude that lasted for over a thousand years.

https://www.huffingtonpost.com/ej-fagan/tax-holidays_b_1737301.html

#56 dr. talc on 11.15.17 at 7:26 pm

Once upon a time you would see signs in computer stores on Kennedy Rd. ‘2% added to price for credit cards’, today? gone. translation- 2% is added onto the price of everything, so if you use cash you lose, no grocery points, no cash back etc for you.
You will NEVER see ‘cash discount’ anymore
why? the credit card companies won’t tolerate it

#57 JakeR on 11.15.17 at 7:28 pm

“Do I have to report money I pay my baby sitter? It’s hardly significant over the year. I’ll think I’ll just pay cash and let her figure out if she’s claiming it.”

Do you want to get a tax credit for that? It’s pretty significant.

#58 Habbit on 11.15.17 at 7:31 pm

Meanwhile back at the ranch honest working folk paying their fair share take it up the ….. we know changes are needed right across the board. Garth how are we to ensure all pay their FAiR share eh? Like everyone eh. Not going to happen as it’s easier to take a dollar from a working person than a dime from a wealthy person. As you know. Do take care.

#59 MSM-Free Zone on 11.15.17 at 7:35 pm

It’s all good, until some tax cheats (a.k.a UHNWI’s) are created more equal than others. After that, all bets are off. Cue the pitchforks and lanterns…

“…..The Canada Revenue Agency offered amnesty to multi-millionaire clients caught using what’s been called an offshore tax “sham” on the Isle of Man — a reprieve that was supposed to remain secret and out of the public eye until it was uncovered by a CBC News/Radio-Canada investigation……”

http://www.cbc.ca/beta/news/business/canada-revenue-kpmg-secret-amnesty-1.3479594

#60 Doghouse Dweller on 11.15.17 at 7:35 pm

How do they know the underground economy now worth between $45 and $50 billion?

#61 Newcomer on 11.15.17 at 7:36 pm

Two financial rules I live by:
1) always report all your income (even if it is not obvious income); and
2) always hire a tax accountant.

Rule one stops worry about the tax man finding out that he didn’t get enough, and rule two stops him from getting too much. My wife actually uses Paypal for her business, and I’ve got to say it’s nice not to give a damn about the CRA having the records. They won’t find anything they haven’t already been told. Meanwhile, my tax accountant saves me around five times what he charges. Unreported income is the dumbest way to reduce your tax bill.

#62 Rausscher on 11.15.17 at 7:38 pm

Was standing in line at Service Ontario the other day. Spent 45 minutes standing there, making no progress in the line, getting more and more annoyed at how slowly people were being helped, how incredibly inefficient the process was and on top of it all how unhappy the employees looked. Clearly nobody cares about whether this can be sped up, but meanwhile we have 6 people doing the job 1 person could do if the process was optimized.

It has to come from both sides: take the tax dollars you need, but spend it like it means something, don’t waste it on the next election promise. Until people feel that their tax dollars are taken seriously there will always be people avoiding tax, and there will be an argument for it.

#63 Nonplused on 11.15.17 at 7:38 pm

#38 wallflower

“when my spawn was going through organized youth sports, all the payments were cash to coaches and referees. Some of these guys were hauling it down every year… cash cash cash.”

Most youth sports coaches are volunteers and do not get paid. Did it myself many years and the most I ever got was a $50 gift card to the Keg. And no I didn’t claim it.

Most youth refs are youths themselves and probably don’t make enough per year to bother with the paperwork.

Most clubs do have some professional coaches on hand, but they are on salary and I bet the tax is paid. A non-profit like a soccer or hockey club would not want to get in trouble with Rev Can. Also I am not sure I like the idea of the government taxing any portion of my son’s soccer club, even the coaches, because that just means my fees I have to pay are higher, just so he can get some exercise.

I suppose the day is coming when the government will try to tax “the volunteer economy” (yes, that is a real thing and it’s also pretty big, in theory there is an economic value associated with things people do for free like coach soccer and hockey), but I think those efforts would be doomed to failure. Who is going to pay tax on something where no money is changing hands? The activity would just stop. Taxing youth coaches for the “implied value” of their activities would just mean no more coaches. Now, that might be a good thing, but it might not be.

#64 Democracy Is Mob Rule on 11.15.17 at 7:39 pm

Despite the rise of electronic banking and alternate forms of payment in the past 15 years, nearly 90 percent of consumer transactions in Mexico are still paid using cash.

various socioeconomic factors such as low bank penetration and financial literacy have contributed toward a greater share of cash usage in Mexico and kept people from rapidly adopting alternative forms of payment.

http://www.withdrawcashwednesday.com/cash-blog/report-nearly-90-of-mexican-transactions-are-in-cash

#65 Speeding up the Crash on 11.15.17 at 7:39 pm

I have always said if you want to speed up this housing correction:

– report to the CRAall of the rental income you paid to past landlords;
– monitor rental ads and addresses and report those houses to the CRA;
– report to the CRA houses with known illegal suites because if they are illegal, you know the owners are not paying taxes on rental income;
– report all BnB units that are houses and condos to the CRA because they are illegal hotel platforms and not pat of the ‘share my spare room in my house’ platform

You can report anonymously to the CRA and they will investigate. And the CRA always finds something to justify the review and/or audit. Throw in the fact that the federal government has massively boosted the CRA budget to find lost tax revenue to fund increasingly bigger deficits, and you have guaranteed action on the housing front.

If every housing bear and tax paying Canadian did this, the market would move much much quicker. But of course, its just easier to wait and whine…

#66 Zapstrap on 11.15.17 at 7:40 pm

So … looks like most dawgs that live in Canada prefer not to pay tax … this doesn’t look good for our collective future. Please don’t get sick. Or smoke. Or zipline. Or …

#67 Lost...but not leased on 11.15.17 at 7:44 pm

IMHO the key issue is the equilibrium in a so- called democracy between our alleged elected representatives and their constituents.

Justin Turdeaus daddy… Peter Turdeau …was simply a Machiavellian maestro of the “divide and conquer” template that has been the contemporary modus operandi to power in Canada.

When people see not only a litany of betrayals, but an entrenched methodology by Gov’t that has all the hallmarks of a kleptocracy, they will resort to any/all means to level the playing field ..and at minimum survival mode.

If Justin Turdeau is willing to give over $30 million to 3 parties who feel screwed Canadian style..well, I can easily supply hundreds of people from an older generation whose claims are on par, if not exceed those of Turdeau’s trinity.

There is NO law, and history has shown..never will be, one that can stop the citizens who have had enough and the status quo is no longer an option.

Parties that continually act as apologists and capitulate to corrupt leaders deserve what they get…as they are increasingly marginalized by the increasingly and rightfully disillusioned.

aka there is no obligation to feed the organ grinder or the monkey..its like putting gas on a fire.

#68 Trojan House on 11.15.17 at 7:44 pm

Remember the old saying “he who is without sin cast the first stone.”

It seems all the blog dogs on here are quick to call doctors, lawyers, engineers, et al, tax cheats and evaders but probably have never stopped to think about the time they paid in cash for something to avoid paying tax. Be honest, all of you commenters here have done it. I have many times.

Somebody said it above – the reason is people don’t like paying tax or maybe too much tax. And if you think you like paying tax, remember when you paid in cash for that deck build?

Btw, the saying is not “money is the root of all evil.” It is “the LOVE of money is the root of all evil.”

#69 Ex Pat canuck on 11.15.17 at 7:46 pm

You can chat about the regular low income hoi paloi and how wonderful you were by forcing your wait staff to pay taxes on tips, that is a good thing you did. But as the paradise papers leak shows us, the biggest corporations and the wealthiest people on the planet regularly dodge paying taxes. Not so, you will say, Sir Garth, what they are doing might be morally wrong but it’s not illegal. It does leave an honest business owner such as myself a wee bit of a bitter taste in my mouth, as I pay the man 38 percent of my income in taxes here in the divided states of ‘murka, while they get off tax free in many cases. If a waitress or waiter chooses to risk prison for tax evasion that’s up to them, but you can hardly blame them for thinking “why should I pay when Apple or Bono or the queen don’t have to?”

#70 Smoking Man on 11.15.17 at 7:47 pm

With the way T2 is blowing vasts amounts of our money on really stupid shit I blame noone anymore for burning CRA. it’s now a mafia collection racket.

Didn’t always feel that way. Always advocated for paying your fair share.

I think if you can get the hell out of Canada do it. It’s just going to get worse.

And if you want to trade forex on a tax free island. Absolutely nothing in your name. No redemptions ever back to Canada. That’s for retirement.

#71 Dolce Vita on 11.15.17 at 7:53 pm

Make a new currency. All current notes to be redeemed by a certain date or worthless. That was the € transition by the way for the doubters.

Then go cashless with the new currency.

Watch all the mattresses in Canada get emptied.

Watch a surge in offshore deposit accounts before and electronic transfers after to Canada.

I am like the Swedes, 1% may be in cash.

Will be fun to watch tax cheats squirm, same people that bitch about Gov. services but won’t pay for them…I can dream can’t I?

#72 Nonplused on 11.15.17 at 7:58 pm

#23 Blobby

How much was she earning? I’ve always been interested to know about how much a server makes.

#73 Smartalox on 11.15.17 at 7:58 pm

One more thing:

All this tax talk reminded me that I had to complete my T1213 Forms for 2018, and mail them to the tax office.

I just did. Let the tax avoidance BEGIN!

For T1213 allows you to reduce the amount of income tax deducted from your paycheque, if you know that you’re going to have tax-deductions over the course of the year.

Regular, ongoing payments that you can write off on your taxes, like:
– Child support and alimony payments
– RRSP contributions (including income-splitting spousal RRSP payments) over an above any company RRSP or pension plan
– Child Care payments (for lower earning spouse)
– Charitable donations (beyond current payroll deductions)
– Medical expenses, such as related to ongoing treatments / therapies.

If you’re going to be making these contributions anyway, and claiming a tax refund the following spring, filing the T1213 gets you a letter from the CRA that you give to your payroll person, ordering them to deduct less tax.

You won’t get a fat return to blow in April, but you’ll get more cash flow in your budget every month. Saves me thousands every year – money that I use to top up my TFSA contributions.

And you’ll get the satisfaction of knowing that you aren’t giving the spendthrifts in Ottawa an interest-free loan of your hard-earned cash for as long as it takes you to file your tax return.

All legal, but almost nobody does it. They’d rather take their chances committing a crime, than keep more money staying legal.

#74 MSM-Free Zone on 11.15.17 at 7:59 pm

Creating a paper trail for unreported rental income isn’t really that difficult.

While residing in one of Canada’s more left-leaning provinces (the one where you can hold out an extension cord like a stick in the winter time) renters were once offered income-based provincial tax credits on their annual returns for the annual rent they paid, in exchange for the name address of their landlords, much to the delight of the CRA and low-income renters.

The system worked quite swimmingly, until a more right leaning, ‘all-rental-people-are-scum’ Harris/Klein-like wannabe came into power.

#75 akashic record on 11.15.17 at 7:59 pm

Taxing Bandit is weird.
He doesn’t even have to work for living.

All those things are applied to the only slave creatures of this planet: humans.

Everyone else is free like a bird.

Doing just as well as the supposedly “most intelligent” ones on the totem pole.

#76 GeniusMoney on 11.15.17 at 7:59 pm

Let’s face it:

1. Corporate taxation should go to 0%, that’s the only way to get rid of 90% of offshore money and have it come back. When corporate taxes are already 0 or near 0 offshore, only an idiot business person would chose to pay taxes locally.

2. Taxation dollars are critical to providing basic services like roads, bridges, fire fighters and yes police.

3. Taxation dollars get massively wasted by governments.

4. Taxation dollars get absolutely abused, and I’d argue criminally abused by governments to fight highly questionable wars. 1 Million+ innocent Iraqui civilians were killed in the Iraq wars. Canada contributed to that, as they did in the Afghan and other wars. I DO NOT F’ING WANT MY TAX DOLLARS TO FUND WARS. The last justifiable war was WW2, anything after that is extremely questionable!

5. The tax code is a complete and utter mess. Despite having software that greatly simplifies filling out a tax return, most Canadians still can’t figure it out. Are they too dumb or is the tax code overly complicated? I’d argue the latter.

6. Income tax has been illegal implemented. Do some google searches.

7. Canadians are taxed to death. A business owner has to pay corporate tax, then income tax derived from his already taxed business, then pay tax on anything else he buys, and also capital gains tax on his income that he manages to invest and turn a profit. QUADRUPLE TAXATION = ROBBERY of the middle class. It’s utterly excessive. PERIOD.

8. Within 10-15 years, most G20 countries will migrate from paper money to fully digital money (aka. Government backed blockchain currencies). At that point everything you spend is fully trackable… under the guise of protecting the nation from tax cheats and #terroristsLOL. Freedom is impossible, when a government has full control over every dollar you spend. How is it that we can claim to be a free nation, when adults can’t be free to spend their money on whatever they want? We gotta wait around 30+ years for governments to finally decide that buying weed is legal? WHATEVER! You can f*** right off. Once this is implemented, in theory tax avoidance will be impossible… unless….

9. You start using anonymous Crypto Currencies like Monero or Zcash (sorry, Bitcoin is anything but anonymous). Today we might have a relatively just government, but just look at the USA.. Today it’s Donald Trump, tomorrow who the hell knows who’s going to be in charge. You want freedom from government spying and control over your life? Start learning about crypto currencies.

10. Once the general population starts using anonymous crypto currencies, it’s game-fucking-over for governments. No, they are not going away, but the taxation laws will be utterly obsolete. The only way to tax citizens to fund wars will be through consumption taxation (GST/PST). Instantly, corporate taxes will be under a significant decline. Income taxes likewise, and capital gains taxes… only the fools will pay those. Further, blockchains can actually be turned against governments and impose **FULL** transparency of all government money spent. No more $50 screws being billed by the military which ultimately end up funding highly questionable black projects.

Government is about to lose the taxation war it wages on citizens. I give it 10-15 years max.

#77 juno on 11.15.17 at 8:00 pm

Throughout history the more you tax people the bigger the underground ecomony gets.

You think by taxing people more, you will collect more taxes. Nope, you will collect less. The best is to have a fair tax system so people will not be enticed to cheat the system.

#78 D on 11.15.17 at 8:04 pm

CRA did it’s regular audit of my large employer and deemed those working in downtown cores and parking on company-owned private property must now be taxed on the value of free parking only because there are paid public lots nearby. And they went retro 3 years even though past audits were fine..likely as it’s private property. Buildings outside these areas aren’t impacted. We are now also taxed on gift certificates. So winning best costume for Halloween and a $25 gift cert will net you about $11 tax on your pay. But, hey, if you work retail, your perks are ok. Or go elsewhere and work in cash.

#79 YVR BUILDER on 11.15.17 at 8:06 pm

Hello Garth,

I’m just curious what, if anything can be done about businesses or homeowners who push service people to take cash? I have worked on both small and large scale projects where it’s is not the trades people or the service providers pushing for cash payments but the person hiring. It is often the trades workers who get the blame for working under the table. Any grown adult should know the rules and it is ultimately their decision but I just want to make the point that it is more often than not, the homeowners or business that is pushing the cash transactions. It is often the difference between getting the job and not.

As a certified journeyman builder I would like to give a small piece of advise to those hiring someone to work on your home. First, only hire someone with real training skills and exucation. Don’t pay them cash and don’t work with them if they ask for it. You are probably going to have a better build or renovation experience with someone who plays by the rules and has nothing to hide. It’s an early indicator of honesty.

#80 jess on 11.15.17 at 8:09 pm

sometimes the rocks need to be turned over to see what is crawling underneath

HSBC has agreed to pay €300m ($353m; £266m) to French authorities to settle a long-running investigation into tax evasion by French clients.

The French financial prosecutor’s office claimed HSBC’s Swiss private banking unit helped clients evade tax.

Europe’s largest bank has acknowledged “control weaknesses” and said it had taken firm steps to address them.

Payment of the fine will close the case against HSBC but two former directors could yet face legal action.

More than €1.6bn of assets were involved in the scheme, according to a statement from the French financial prosecutor.

The investigation started in 2014 after a former IT employee leaked data involving thousands of French customers. …
http://www.bbc.com/news/business-41992985
======================
from a former insider:

We’re sharing in full an article by tax ethicist George Rozvany who racked up 32 years of experience at senior levels of Big 4 accounting firms and major corporations. We interviewed him previously on the Taxcast along with the award winning economics and finance journalist Michael West speaking on the Australian experience of the Big Four. Firstly I asked him for a comment on the Paradise Papers:

http://www.taxjustice.net/2017/11/15/paradisepapers-big-four-words-former-insider/

#81 islander on 11.15.17 at 8:16 pm

‘salvation through taxation’…………read and weep….for others!

https://www.economist.com/news/finance-and-economics/21623742-getting-greeks-pay-more-tax-not-just-hard-risky-treasures

https://www.vatlive.com/vat-rates/european-vat-rates/

https://tradingeconomics.com/greece/sales-tax-rate

#82 Doug t on 11.15.17 at 8:22 pm

#10 Bob Dog

I’d buy you a beer – and pay cash

RATM

#83 Jonah on 11.15.17 at 8:23 pm

@Dakkie, the very first comment:

That is out of topic. Veterans can go to court and sue the system. Liberals paid the convicts way less than what would courts have awarded. It is called democracy, something that was missed while cons were the rulers.

#84 Taking Action on 11.15.17 at 8:25 pm

I have always said if you want to speed up this housing correction:

– report to the CRA all of the rental income you paid to past landlords;
– monitor rental ads and addresses and report those houses to the CRA;
– report to the CRA houses with known illegal suites because if they are illegal, you know the owners are more than likely not paying taxes on rental income;
– report all BnB units that are houses and condos to the CRA because they are illegal hotel platforms and not pat of the ‘share my spare room in my house’ platform

You can report anonymously to the CRA and they will investigate. And the CRA always finds something to justify the review and/or audit. Throw in the fact that the federal government has massively boosted the CRA budget to find lost tax revenue to fund increasingly bigger deficits, and you have guaranteed action on the housing front.

If every housing bear and tax paying Canadian did this, the market would move much much quicker. But of course, its just easier to wait and whine…

#85 For those about to flop... on 11.15.17 at 8:25 pm

Recent Sale Report.

This one just went.

6491 Mackenzie Place,Vancouver.

Asking 3.78

Sold for 3.27

Tax assessment 3.75

Still got over 3 million for a 1950s bungalow…

M43BC

https://www.zolo.ca/vancouver-real-estate/6491-mackenzie-place

#86 the Jaguar on 11.15.17 at 8:27 pm

It’s possible that in a previous incarnation I was acquainted with a couple of CRA detective types who used to tell me stories that 100% support Garth’s comments about restaurants. Never mind the wait staff and chefs, the owners are just as likely to pocket cash. When it comes to the province of British Columbia and ‘failure to report syndrome’ one must expand the territory outside of the lower mainland. Any area, ( Van Island, Okanagan, etc) where tourists flock are just as guilty. One has to understand what Albertans know about the ‘larcenous BC mentality”, which is only matched by the “corrupt, conniving, tax grabbing, morally bankrupt BC government”. If municipalities such as Surrey and the like have no political will or moral fiber to enforce zoning bylaws against illegal suites what message does it send to those who house tenants in them? Not only do they ignore the CRA, they are probably not complying with safety standards for secondary suiteS. In this age of digital sophistication why do we put up with this Banana Republic? Seems like an easy crackdown on the perps. I admit to feeling sympathy for Morneau because I see his genuine qualities if other do not, but if real justice for all is the objective the low hanging fruit is all around us. Where is our Elliot Ness of canadian tax evasion when we so desperately need him? Next time Bandit needs a bodyguard fly me in for that daily walk up the stairs at Bell Fountain. I come with excellent references.

#87 Lost...but not leased on 11.15.17 at 8:32 pm

BitCoin…

from recent reports…Bitcoin lost over 30%
..but was bailed out by Zimbabweans cashing in via the revolution to depose Mugabe

#88 For those about to flop... on 11.15.17 at 8:32 pm

Howmuch has been inspired by the boss of this blog and is pumping out articles at a faster rate.

Will they rope two guys into giving up part of their Saturdays?

Nah…

M43BC

” The Most Valuable Fintech Companies, in One Chart

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https://howmuch.net/articles/10-biggest-fintech-companies-in-america

#89 BobC on 11.15.17 at 8:32 pm

#37 nonplused

“I’m not sure I agree with taxing tips though. Are they income? Or gifts? In theory the business transaction is what’s on the receipt.”

Excellent point. In fact it’s gems like this that has me reading every comment.

The CRA does not consider tips to be gifts, but to form part of earned income. Too bad. – Garth

#90 Game Over on 11.15.17 at 8:48 pm

DELETED

#91 akashic record on 11.15.17 at 8:56 pm

#90 Game Over on 11.15.17 at 8:48 pm

DELETED

Self-fulfilling prophecy in action.

#92 Long-Time Lurker on 11.15.17 at 8:56 pm

Reading the war comments from yesterday: The NoKo situation is hotter than most people realize. Next year should be interesting.

I think Dharma Bum can come up with a Lao Tzu quote for Garth’s post today. How old’s the Tao Te Ching? 3000 years? Some things never change.

#93 akashic record on 11.15.17 at 8:58 pm

#87 Lost…but not leased on 11.15.17 at 8:32 pm

BitCoin…

from recent reports…Bitcoin lost over 30%
..but was bailed out by Zimbabweans cashing in via the revolution to depose Mugabe

—-

It makes sense.

The fiat bailout that created Bitcoin didn’t depose anyone.

#94 vf on 11.15.17 at 9:01 pm

Speaking of the CRA can anyone out there tell me how to get in touch with them ? I have tried the toll free number dozens of times in the last month and can’t even get on a queue because there so busy !

#95 n'ta graves on 11.15.17 at 9:03 pm

Did Trudeau Really say “tax avoidance” will be opposed?
Will those seeking to INCREASE and MAXIMIZE their taxes be PRAISED?

DID A THINKING POPULACE ACTUALLY ELECT HIM?

How long will the sheeple endure him?

#96 Gregg in Victoria on 11.15.17 at 9:03 pm

” 54% of homeowners in the Lower Mainland leasing out basements…”

Hello, Garth. We rent our basement suite here in Victoria and claim every nickle on our income tax – at a cost of ~$2,000 a year. I’m pretty sure we are one of the very few to do this. We claim 35% of the house as revenue producing.

Obviously it has appreciated a lot in the 15 years we have owned it.

What are the chances the feds are going to make us pay capital gains on 35% of the proceeds when we sell. Is there a way to cause a transaction to ‘recast’ the cost basis before the rules change??

Many many thanks.

#97 Walter Safety on 11.15.17 at 9:13 pm

You didn’t have to do that Garth we already know you’re a globalist.
Because of taxation we will never know what alternatives to the so called government services would exist.

#98 akashic record on 11.15.17 at 9:17 pm

“I’m not sure I agree with taxing tips though. Are they income? Or gifts? In theory the business transaction is what’s on the receipt.”

Because you are looking at this from an entirely wrong angle.

It is really simple: income is what the CRA deems to be income.

Really simple actually, once you can force yourself to swallow it.

It comes with the tax free gift of total freedom from the burden of thinking any of it for the rest of your life.

#99 Game Over on 11.15.17 at 9:18 pm

It was not my intention to be offensive. Let me rephrase,

I think the reasons for the underground economy are multifaceted. People that feel their tax dollars are being wasted away by the government, seeing corporations game the system and get away with it, as a means to boost their income to meet the ever rising expenses in the major cities AND as a means to get started in this country. Jobs aren’t easy to come by anymore.. Especially when you are just starting out. That goes for everyone, first generation or 8th!

#100 Capt. Serious on 11.15.17 at 9:33 pm

Garth really buried the lead this time. He owned four restaurants. I’m stunned.

#101 akashic record on 11.15.17 at 9:33 pm

Did Trudeau Really say “tax avoidance” will be opposed?
Will those seeking to INCREASE and MAXIMIZE their taxes be PRAISED?

DID A THINKING POPULACE ACTUALLY ELECT HIM?

How long will the sheeple endure him?

I don’t have anything bad to say or even think about Trudeau.

In fact, I wish him all the best and happiness.

That includes the deliberation from the burden of playing the role of a PM of a country, which is beyond the reasonable weight of duty for him. He will have a much more fulfilled life if he is focusing on his real quest: enjoying his inherited financial freedom with his family.

#102 Theyounggreek on 11.15.17 at 9:36 pm

Gentlemen,

I recently returned from a long overdue trip to Greece and saw first hand what happens to a country when this “cash” game becomes the norm. Tax avoidance and bad government have bankrupted that country to the point where pensions are being cut and starting salaries for most jobs are sub 500 euro/month. A young man I spoke to who was 6 months away from becoming a nurse was told he’d be earning 300 euro/month to start and maxing out at 800 euro/month in 5 years. That night I paid 8 euro for a draft beer, do the math! Another young woman who just completed her medical training was earning 1000 euro/month. Be thankful we live in a country where most of us pay our taxes and those in government are mostly competent.

#103 Stupid Stupid Stupid on 11.15.17 at 9:36 pm

Hands down renovators are the worst! I know of several who get cash handed over at $15,000+ at a time. They end up just buying big homes with the money as a huge lump some payment. It washes the money for them I guess?

We shoot ourselves in the foot when we pay in cash. We save 13%, but we lose 40% in tax they would otherwise pay that contributes to your roads, schools, hospitals.

A cashless economy would solve this. But if the power ever goes out….

#104 Smoking Man on 11.15.17 at 9:39 pm

This sucks. Saw a poster in New Orleans that got to me

Alcohol
A great story was never written eating salad.

The problem I’m eating salad cutting back smokes and cutting down bozze.

Suck for Smokey fans. I just can’t come up with anything worthy to write about with no empty bottles. My fun is over.

The machine beat me.

Got to eat, huge price to pay.

#105 FLHTK on 11.15.17 at 9:40 pm

Tax dollars gets wasted by financial illiterate governments. Avoiding at all costs is a good thing.
Lets go and give away billions to a country no-one cares about because it’s the canadian thing to do. They wouldn’t be so in debt if they didn’t give the money away now would they!

#106 Cloudy on 11.15.17 at 9:42 pm

A policy expert I am not, however it seems if there was a way to allow people to make a small deduction for certain expenses that are heavily involved in the cash economy, it would almost solve itself (Christ I have to kick my ass for sounding like Trudeau there). As a small business owner I get a receipt for everything. I’ve had lots of people say, for example, “I’ll charge you $500 cash” for X service. I always say, how much for a receipt? Same thing usually just the tax or a small amount extra on top. It’s never enough to outweigh the deduction I would otherwise get.

#107 Unabanker on 11.15.17 at 9:43 pm

So, let me get this straight. Tax avoidance, which might follows the letter of the law is cool and their is an entire industry devoted to the wealthy to help them finagle their way out of paying their fair share….but drywallers and ditch diggers who accept cash for services are “breaking the law.”

That’s funny.

#108 Slushie on 11.15.17 at 9:44 pm

I always make some “errors” in my taxes. I’ll keep making these until I get caught. F Canada, all it is is overpaid braindead public servants.

#109 For those about to flop... on 11.15.17 at 9:45 pm

Here’s a post I do about once a month to see what’s happening on the supposed affordable end of the detached market in Vancouver.

Number of properties for sale under 1.3m …..48

Number of the properties with a reduced sticker… 12

So 25% of the cheapest houses in Vancouver had to reduce their prices.

Out of the 48, I can see a few more that I know have had previously lowered like the Rupert one and also Mons and so the real number would be above 30%

Also both of them will probably lose money,Mons for sure,overpaid at the peak.

Surrey,the first two pages I looked at to get the same sample size of 48 and they had 9 houses with reduced asking.I could probably go through the folder and find a couple of them in trouble too.

So let’s just round it off to 20%,and that’s on houses between 600/800k.

So guys can come here and say their buddy Steve just sold his house in a couple of days for a couple of hundred thousand over ask and try and convince people that everything is the same or they can look at verifiable information and make a decision based on that…

M43BC

Vancouver detached under 1.3

https://www.zolo.ca/index.php?sarea=Vancouver&ptype_house=1&max_price=1300000&min_price=800000&filter=1

#110 TurnerNation on 11.15.17 at 9:47 pm

According to Advocis magazine Saskatchewan now is taking life insurance premiums – at 6%.
This means your dollar buys 6% less of premium value – and ensuring lower payout to your loved ones.
Taxes on life and death.

No wonder cash is king. Let’s face it taxes never ever come back to us. Every year every hospital begs for money and critical funding via lotteries, funding drives.

Indigdenous Affairs ministerial budget and spending approaches 9 billion , yearly, yet Native people live on reserves in conditions of below even a refugee camp. More taxes is not an answer; stopping of graft and theft at high levels, is.

#111 TillyHat on 11.15.17 at 9:50 pm

This shouldn’t be surprising. The CRA has to come up with the money for welfare cheques for asylum seekers and refugees somehow. Also dental and eye care and housing and health care etc.

#112 Wrk.dover on 11.15.17 at 9:58 pm

Harper lowered about the only unavoidable federal tax that lowlife and parasites pay. GST. Thankfully the provinces picked up the slack.

I have always noticed that the govt spends $1.20 or what ever it is, for ever dollar they get. How much do you want to enable this borrowing?

I will know honesty has been restored in governments when the Dow corrects downward by more than 1% on any given day…what has it been, like a year now since this has happened more than a handful of times?

#113 Al on 11.15.17 at 9:58 pm

Lol at aggressive, and very often opaque offshore tax avoidance and someone contributing to an RRSP in the proverbial wide open being “just like” one another.

#114 down_boy on 11.15.17 at 10:01 pm

Nice bank.gov plan overall: lock debtors into overpriced boxes, raise interest rates, raise inflation, raise taxes, lower equity.
“Now youse can’t leave” – A Bronx Tale.

signed,
0x250abe3842faeb86314d729a146c62dd81d54dd7
hehe

#115 When the Whip Comes Down on 11.15.17 at 10:06 pm

#95 n’ta graves – I’m with you. I can’t believe what comes out of that prat’s mouth. He ain’t my prime minister. He is the type of person that probably should be in government but certainly not in the driver’s seat. As is well acknowledged, without his last name/inheritance and political heritage, he’d wouldn’t be where he is in life. Tax avoidance next on his list. Gimme a break – would love to know how much tax avoidance he has practised without even knowing it over the years he’s been in politics.

#116 BS on 11.15.17 at 10:09 pm

#79 YVR BUILDER on 11.15.17 at 8:06 pm
Hello Garth,

I’m just curious what, if anything can be done about businesses or homeowners who push service people to
take cash

There is nothing wrong with a customer paying by cash or a businesss accepting cash as payment. As a business it is up to you to declare the cash as income
At year end. Your customer could care less if you declare the cash payment as income or not. That invludes GST which can just be added into the price and remitted by the business. Don’t blame the customer if you don’t pay taxes.

#117 Pete from St. Cesaire on 11.15.17 at 10:09 pm

I suppose the day is coming when the government will try to tax “the volunteer economy”
—————————————————————–
Oh yeah, that’s coming.
There is already talk about making taxable anything you learn while on a job. Get a job as a night auditor at a hotel, learn a bit about accounting, be taxed on your new knowledge at the value of having learned it at a university.

#118 joblo on 11.15.17 at 10:10 pm

$20 billion short per year, keep up the good work Gubment!

#119 mathman on 11.15.17 at 10:11 pm

It does not take a stroke of genius to crack down on rampant RE tax evasion. Hire 25 comp science students from Waterloo, have them link T1’s of renters to T1’S of owners (reporting the same address) and see if any rental income has been declared. It would take minutes to pull the data and a team of auditors to comb through and enforce. Threaten large penalties and garnishments, you will get your money back real quick.

It disgusts me that as a high income earner, god forbid I miss a dollar of dividends received and I will get the rubber glove, meanwhile hundreds of the thousands of smug aholes have basement apartments and have never claimed the rental income.

Seems like a simple solution to me. Also take anyone who claims the principal residence exemption more than three times in the last 5 years and audit them. They are abusing the spirit of the rule and it should be considered business income for the amateur builders that do this every 18 months.

Just some simple ideas to submit to your respective MP.

Would you rather have people who contribute nothing and cheat the system live in this country or the Cardiologist/Oncologist who actually saves lives and may be tired of being taxed to death. Call me when it takes you 3 months to get an appointment and give me your answer.

Math

#120 Financial Freedom at Forty on 11.15.17 at 10:14 pm

I work with a number of occasional freelancers – peers who are retired from former employers. They take on assignments here and there that interest them. They don’t charge tax but I am kept to a strict billing limit or else have to move the work into the next year and wait for them to have revenue room again. The ‘small supplier’ exemption.

#121 Pete from St. Cesaire on 11.15.17 at 10:17 pm

In a cashless society people use other things; that’s why gold and silver will be outlawed. Foreign currency will be outlawed. Bartering will also be outlawed. Recently in New Jersey it was discovered that bottles of TIDE laundry detergent were being used as a bartering tool. Being found with Tide or owning 2 or more bottles is becoming something that will get you put on a watch list.

#122 akashic record on 11.15.17 at 10:23 pm

Remember Equifax that was hacked recently?

They have your salary history. Here is how to opt out to let them reveal it.

https://krebsonsecurity.com/2017/11/how-to-opt-out-of-equifax-revealing-your-salary-history/

#123 John in Mtl on 11.15.17 at 10:24 pm

Oh boy Garth, have you ever opened a can of worms tonight!

Cash is one of the last bastions of personal freedom. So I encourage everyone to keep using cash – because – if one day everything is digital transactions only, it can be traced and most importantly: controlled. And you can bet that maybe one day, some gov’t bureaucrat decides he doesn’t like your last comment on this blog and declares you an “undesirable” or a “persona non grata” according to the thinking fashion-du-jour, and cuts off your financial resources. What are you going to do then?

I tend to agree with most reader comments tonight regarding the govt’s heavy & multiple taxation, waste, general ineptitude at managing expenditures; and “those at the top” gaming the system to their advantage while everybody else pays.

I got a striking example (again) of gov’t ineptitude and waste today as I was riding on a bike path: they had dumped precast cement blocks for new lampposts to be installed on a 2KM stretch, 3 lights per small city block. But, the path doesn’t need new lampposts – the (new, LED) lights are already there on existing posts and were installed barely 2 years ago at a cost of millions. Now they are going to do it all over again?

Just look around you, recall the countless articles you read on waste and overspending over the last 10-20 years, and ask me why I try to pay as little tax as possible now. Hell, I’ve paid my entire long life. Enough!!

Cynical, are we?

You bet I’m cynical about the entire system. And so are many people nowadays. Anyone with good eyes and a brain to think properly can figure it out. A major overhaul of the existing system is needed. Will it happen? No way, it pays too much to vested interests to maintain the status quo. We need a revolt, a revolution.

#124 Pete from St. Cesaire on 11.15.17 at 10:27 pm

Taxing Bandit is weird.
He doesn’t even have to work for living.
All those things are applied to the only slave creatures of this planet: humans.
Everyone else is free like a bird.
—————————————————————+
I’m just waiting for one of those people who ‘self identify’ as a dog to be charged with tax evasion and claim that they are exempt from tax due to not being human. It is soon to be against the law to refuse to refer to anyone as anything other than they wish to be treated. Can’t call him sir or mister if he wants to be called Ze or doggie, that’s a violation of his rights. So if a CRA guy or the judge says that the ‘non-person’ guy is a person and must pay, the judge is guilty of a serious offense. I’m just itching to see this stuff play out. Perhaps it already has and there is a publication ban on the stories. The trans-humanist NWO wants nothing more than to get people to renounce their species/gender/religion (and therefore God); perhaps the CRA has been told that they must simply accept it if someone refuses taxes based on their not identifying as human.

#125 akashic record on 11.15.17 at 10:28 pm

Exercise your brain, give a spin to your mind: The Bitcoin and AI connection.

https://www.youtube.com/watch?v=YSn7Iomisyc&feature=youtu.be

#126 Raging Ranter on 11.15.17 at 10:31 pm

@ #3 Victoria Real Estate Update, if you think the minimum down payment on a home in the US is 20%, you need to stop posting right now. That’s a glaring error on your part. Conventional mortgages are minimum 20% down in the US, as they are up here. But they have insured mortgages down there too, and homebuyers can put down as little as 2.5% depending on the type of insurance. Try again. Or rather, don’t try again. Much of what else you said was true, but that doesn’t excuse basic and obvious errors in fact.

#127 Bottoms_Up on 11.15.17 at 10:36 pm

I tip large at restaurants (if you can afford to eat out, you can afford to tip well). But I always tip via debit/credit, so there is a paper trail.

#128 TurnerNation on 11.15.17 at 10:40 pm

Kanadian magic trick!
Turning a $10 bill into a Twonie and a Loonie:

Start with a well paid job in high tax bracket, earn $10. With the Total Taxes you pay, it’ll turn into $5.
Then visit your local eatery; be served by someone earning min wage or lower alcohol server min wage. Tip them $5.
They’ll be taxed again…leaving $3.

(If they spend that $3 it’ll be hit again – with 14% HST)

Yup the elites want 100% of our money. They know that waving a thick book in our faces – a textbook, bible, or tax code – turns us into weak kneed un-thinking idiots.

#129 Dmitry on 11.15.17 at 10:45 pm

If I have a chance to pay cash – I will do that. I pay cash to car mechanics, I pay cash to restaurants for take-outs (even though I can pay credit with the receipt and claim as business expense). I just want to help these guys because I know that our government steals from them in the form of gazillion taxes that do not make any sense.
I’m not against taxes at all. I pay all my taxes – corporate, personal income taxes, property taxes, taxes on income from rental property and so on.
But it’s the government that is the problem that pisses the money away on things that do not make sense at all.
But even that is OK with me. What I truly hate is how they push all this gender identity crap and sex-ed crap here in Ontario.
Teachers have a specific reading list of books from which to choose, most of which have gender ideology woven throughout the story – http://d3n8a8pro7vhmx.cloudfront.net/pafe/mailings/1329/attachments/original/LGBT_booklist.pdf
So we decided to home-school our kids.
Do we get tax break on this? No, of course not.
How’s that fare?
Seems that our government wants to turn all of us to genderless, brainless tax-paying consumers.

#130 Catalyst on 11.15.17 at 10:47 pm

I’ll preface this as – it’s not an attack and just trying to understand because I love your blog – but why did you do nothing as minister especially for the restaurant industry? As a wage slave paying nearly half of my pay in taxes, I find it very frustrating that minimum wage is not enforced in this industry and tipping done away with completely. What is the reason for current government perpetuating the status quo?

#131 Bottoms_Up on 11.15.17 at 10:52 pm

There is only one payer–the tax payer. If you are gaming the system, you are screwing yourself. Doing business under the table? There’s an increase in gas tax. Not remitting your HST? There’s an added health tax.

#132 Lobster Man on 11.15.17 at 10:55 pm

The tax collectors are getting smarter.
Within a couple of months the B C Provincial Government will likely introduce a renter’s grant, supposedly at around $400 a year. In order to apply for this grant a renter has to submit (with the income tax form) the rents he/she pays, the address, the identity of the landlord, plus the rent receipts.
Bravo! Can a landlord dare to continue to ask for cash payments and continue not to report this income stream?
There is one more potential play here. If the rental areas in the house add up to be something “substantial”, CRA may argue for a less than 100% principal residence exemption when the property is eventually sold.
We are talking about big money here.

#133 For those about to flop... on 11.15.17 at 10:56 pm

Pink Pumpkins being carved in West Vancouver.

This is an existing case I have that just chopped another half a million off the ask.

They join a long line of people that speculated in this price range that are finding it tougher and tougher each month to find someone to bail them out.

If you look at my notes you can see they are on the hook for 4.16 and so even if they get ask they will have a roughly 400k dent in their piggy bank after expenses.

That’s what happens when you overpay for a potato…

M43BC

2035 Russet Way, West Vancouver paid 4.16 ass4.11

Aug 29:$4,988,000
Sep 27: $4,588,00
Change: – 400000.00 -8%

2035 Russet Way, West Vancouver

Aug 29:$4,988,000
Nov 14: $4,088,000
Change: – 900000.00 -18%

https://www.zolo.ca/index.php?sarea=2035%20Russet%20Way,%20West%20Vancouver&ptype_house=1&max_price=1300000&min_price=800000&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAyOTVBOQ==

#134 IHCTD9 on 11.15.17 at 11:08 pm

I guess avoiding taxes is an official hobby of mine at this point. I’m with the dogs who feel that government needs to be stewardly with our collective blood, sweat and tears. If they just blow it all on sheer stupidity without a care in the world, it’s really hard for them to get up on their high horse and tell us all we’re a bunch of thieves…

The government is screwed, they probably already know how politically incorrect going wide open on tax evasion will be. If you can’t take down one group, you can’t get any of them. Plus, they need to get re-elected, and certain parties draw support from certain areas that preclude the CRA from going in hard on tax evasion. That’s why bloated tax cows like cash rent payments won’t be exploited as it should be. The Libs don’t have the large clanky brass ones needed to do the job, so let’s go after the PayPal’ers, hopefully they’ll break even at $0.00.

Another issue is the cost. The feds would never get the taxes from buddy who did a roof job, brake job, or who sold a cord of wood without expending 10X the taxes retrieved with the effort. Not worth doing, better to make scary robo calls and cross fingers.

For those who think digital transactions will save the day, look across our southern border. It won’t happen here unless it happens there first. There’s not a tax hating individual on the entire planet who wouldn’t take US dollars as payment for anything. That goes double for Canadians.

Raise your hand if you DON’T have some US funds kicking around the house right now this second. Didn’t think so. Crack open your wallet and dig around in the loose change, any US nickels and dimes in there? Yep, there are. Anyone have trouble getting rid of that last 20.00 greenback left in your wallet after a trip by just spending it? The only thing we’d get with an attempt at a digital currency would be Billions more in debt, and an underground economy on crack.

We’re going broke. Our only hope is that commodities and oil will once again rise in demand. Didn’t happen quickly enough for Venezuela, going too slow for most OPEC nations too. We’re doing EVERYTHING wrong right now. With the CRA now digging for pennies on the beach, we get yet another confirmation that the feds are in big trouble.

#135 Leo Trollstoy on 11.15.17 at 11:09 pm

In the past I owned four restaurants with over a hundred servers, bartends and chefs. – Garth

What can I do that would be more agony than raising kids, for $200 Alex.

#136 Leo Trollstoy on 11.15.17 at 11:10 pm

You do understand I used to be the federal minister of national revenue? – Garth

Best buzzkills for $400, Alex

#137 Leo Trollstoy on 11.15.17 at 11:16 pm

Here’s another way to skirt the taxman

Retina specialist needs to inject you with drug B

Pharmacist orders 1 vial of drug B, separates it into 4 syringes of drug B

Physician writes 4 Rx and charges 4 patients for injection of drug B (4 x $1300)

Pharmacist only needs to order 1 vial, but can remit to ODB 4 times

Quadruple payday. $6m/yr ODB billings

Profit $$$

Thx mr government

#138 IHCTD9 on 11.15.17 at 11:28 pm

#112 Wrk.dover on 11.15.17 at 9:58 pm
Harper lowered about the only unavoidable federal tax that lowlife and parasites pay. GST.

————

Super easy to avoid, and reduce on many purchases. We’ve got the Internet these days, Kijiji, EBay, Craigslist etc… never been easier.

Frankly, I’d jump for joy if we ever moved to more of a consumption based tax system like Sweden. Cut my income taxes in half and triple the GST, then give me a lemon to wipe the smile off my face.

#139 genbizx on 11.15.17 at 11:39 pm

i said once before – laws mean nothing if u can’t or won’t enforce them…thats canada…

on the backs of the honest….it worked when money meant less than principle…but not now

#140 Wack on 11.15.17 at 11:46 pm

Lower income tax
Raise the gst,
Problem solved!

#141 Victor V on 11.16.17 at 12:07 am

Basement apartment ban proposed for Toronto Airbnb

https://www.thestar.com/news/city_hall/2017/11/15/basement-apartment-ban-proposed-for-toronto-airbnb.html

Unmoved by pleas from desperate homeowners, some Toronto councillors want self-contained basement apartments banned from Airbnb and other short-term rental services.

Planning committee members unanimously rejected a city staff proposal that secondary units, with their own kitchens and bathrooms, be included in new regulations on lucrative rentals of less than 28 days.

Their concerns Wednesday echoed those of Vancouver councillors who a day before enacted regulations that also ban short-term secondary unit rentals.

Councillor Ana Bailão, Mayor John Tory’s housing advocate, told fellow committee members that Airbnb has a place in Toronto but city council, when it finalizes rules on Dec. 6, can’t let long-term rental units for Torontonians instead host a parade of temporary visitors.

“We have an extremely unhealthy vacancy rate in this city,” said Bailão, one of Tory’s deputy mayors. “If you are a renter trying to find an apartment to live in this city, it is a really bad experience. It’s frustrating, it’s desperate, people are having a tough time and obviously it has an impact on rents.”

#142 Big Daddy on 11.16.17 at 12:08 am

The problem isn’t a lack of revenue….the problem is that the Trudeau Liberals are very poor managers of the tax revenues we send them. Millions to terrorists…..hundreds of millions to dead terrorists family pensions in Gaza etc. Billions supporting failed regimes…..billions to wealth distribution schemes…..billions in waste…..billions pandering to unions and a national broadcaster for loyalty during the Hate Harper Campaign…..billions on green carpet baggers schemes…..now billions more on a Uzn war machine that brought us a coup in the Ukraine and an attack on western civilization in Europe…need I go on? Trudeau is a wastrel….his advisor Gerald Butts seeks an end to country as we know it. Want to know why the countries running short? Look no further than the Trudeau Incompetants in office. Before calling Canadians cheats…..let our thieving Trudeau Liberals take a good look in the mirror.

#143 IHCTD9 on 11.16.17 at 12:17 am

121 Pete from St. Cesaire on 11.15.17 at 10:17 pm
In a cashless society people use other things; that’s why gold and silver will be outlawed. Foreign currency will be outlawed. Bartering will also be outlawed. Recently in New Jersey it was discovered that bottles of TIDE laundry detergent were being used as a bartering tool. Being found with Tide or owning 2 or more bottles is becoming something that will get you put on a watch list.
————

The problem with outlawing something is the matter of boots on the ground enforcement, and real life controls.

Right now, it is totally illegal for me to go on a Rez and buy gas or whatever as a non-native tax free. But guess what? Zero enforcement. Now the FN’s have their own cops. Are they busting all the non locals filling up and buying smokes? NOPE! If they ever did, heads would roll.

If I do buddy’s roof in exchange for a brake job, how is anyone going to prevent it from happening? Right, it’s impossible to actually stop it until we’re all forced to wear body cameras and microphones.

Then there’s banning US cash in Canada.

I know a guy who took mailed in the envelope US cash from US buyers for eBay sales way back. You’d never guess that someone would do something that risky, but it went on all the time. Want to take a guess why they took that risk? Things go on that you wouldn’t always anticipate, and the government always figures it out last. The pressure on owners of black market cash to spend it off quick is huge, it gets done, one way or another.

In short, I don’t think that an Uber expensive, massively bloated Western bureaucracy can ever stamp out black market activity if it wants to live. There’s just not enough money to make it happen.

#144 Irony of it all on 11.16.17 at 12:19 am

The Canadian government put a big for sale sign on Canada years ago. From farm land, to corporations, to private homes. It’s all for sale due to policies that don’t give a damn about its citizens but you better pay every cent owed to the bureaucracy or they will literally destroy your life with prejudice.

#145 IHCTD9 on 11.16.17 at 12:28 am

17 Pete from St. Cesaire on 11.15.17 at 10:09 pm
I suppose the day is coming when the government will try to tax “the volunteer economy”
—————————————————————–
Oh yeah, that’s coming.
There is already talk about making taxable anything you learn while on a job. Get a job as a night auditor at a hotel, learn a bit about accounting, be taxed on your new knowledge at the value of having learned it at a university
———-

That’s right on par with local suggestions out my way to install meters on private rural wells that were installed, are maintained, and were paid for by the homeowner. Just throw the idea of receiving any kind of service for your taxes right out the window. We need more, so hand it over.

Yep, we’re going broke.

#146 Hugh Janus on 11.16.17 at 12:32 am

Hundreds of millions to terrorists, 5 million to an ice rink 2 blocks from the canal, refugees being treated like royalty while aboriginals live in filth on reserves, a lying finacnce minister calling job creators tax cheats, a completely out to lunch federal minister saying it may well cost billions to fix a payroll screw up, the list is endless and unacceptable. No wonder joe schmuk tax slave is trying to pinch a buck any way possible…..

#147 fishman on 11.16.17 at 12:33 am

Hasn’t anyone on here ever been audited? I’ve been incorporated for thirty years & need a CA to sign off. But the small print has the CA say he hasn’t done a full legal audit(like for non profit corps.) & is using figures supplied by the client. If your making money & there’s some big money years in your industry your number will be pulled, especially if you’ve had the Chef’s hat on. These CRA guys are deadly. You’ll be sitting with your newly acquired constant stomach ache while Mr. Pencil zeroes in like a laser beam to those lines you wished,hoped,prayed they wouldn’t notice. And by the way get the boxes out for the last seven years.
All this in your own home because you’ve been deducting it as an office. The old lady giving you the hairy eyeball (she knows what you’ve been up to)while keeping the way too curious kids away. And if your real polite & you haven’t been too greedy they’ll go easy & just net worth you. Go for it blog dogs. Fill your boots.

#148 Blobby on 11.16.17 at 12:41 am

#72 Nonplused

this was around 8 years ago. She was working in a busy place (a quiet bar wouldn’t be same). I was earning 80k a year, she was earning (a fair bit) more than me after tax (and that’s with me lowering my tax as much as possible by doing things like rsp, etc)

Of course, she wouldn’t have had as much rsp room as me, as (as far as tax man was concerned – and anyone she could Moan to about how poor she was) she was earning far less than me.

#149 Blobby on 11.16.17 at 12:43 am

@140 – wealthy people can avoid gst. Poor people can’t

#150 Pete from St. Cesaire on 11.16.17 at 12:57 am

For those who think digital transactions will save the day, look across our southern border. It won’t happen here unless it happens there first. There’s not a tax hating individual on the entire planet who wouldn’t take US dollars as payment for anything. That goes double for Canadians.
——————————————————————–
I guess you didn’t read what I wrote earlier. Foreign currency will be illegal to possess. You’ll only be allowed to get your hands on foreign currency as you are traveling out of the country by getting it at a place in the secured area of the airport or at a duty-free-shop-styled place at the border. So don’t think for a minute that the people will simply be using US$, Pounds, Rand, etc. Possession will be met with immediate confiscation and a heavy fine for first-time offenders. Automatic jail for large quantities (just like with drugs, where more than a certain amount = trafficking; the amount is the proof).

#151 Damifino on 11.16.17 at 1:19 am

#94 vf

Speaking of the CRA can anyone out there tell me how to get in touch with them ? I have tried the toll free number dozens of times in the last month and can’t even get on a queue because there so busy !
——————————–

The CRA is not particularly interested in making themselves available to the public unless you want to use their ‘snitch’ line. They’re more of a “don’t call us… we’ll call you” kind of organization.

This I know by experience. They’ve recently built a huge office building on Terminal Ave in Vancouver. There’s no signage on it that says CRA. There’s a single entrance for employees only. The public is not welcome there. The public is not welcome at any physical location of the CRA, as far as I know. Not in my city, anyway.

Here’s some advice the CRA gives the public: Don’t bother calling early in the week. Try a Thursday or a Friday. And it’s true! I finally reached them on a Friday after waiting on hold for only 20 minutes.

I have access to my CRA account online, but… if there’s a issue that can’t be resolved that way, you’re definitely in for some pain. Fortunately though, it will only be your time that gets wasted.

#152 Chelsea on 11.16.17 at 1:35 am

Don’t believe in tipping! Born in Australia, they do not tip, so why tip here in Canada. Tipping with cash is avoiding the taxman. It flaws me that hard working people here are heavily taxed, while worker’s in certain professions are handed cash in hand (tips) to spend freely. Something is terribly wrong with this picture. :-)

#153 Nonplused on 11.16.17 at 2:03 am

#57 JakeR

I assume that was for me.

So first of all there is a difference between my before/after care provider who is running a real business, has lots of kids, and a real income, as compared to my babysitter who is a teenage girl I hire maybe 5 to 10 nights a year for $100 a pop if it was a big night.

My babysitter is just my friend’s teenage daughter, and she sits around playing video games with my son if we have an after work function. She maybe makes $500 a year off of it. So, yes, it’s not significant and it doesn’t matter.

Before and after care is a different matter and a different thing but I still don’t get it if the government wants my wife to work they should lay off her service providers. She’s already paying the tax, and the idea that the before/after care should have to pay tax on the money my wife needs to spend in order to pay her taxes is redundant. I guess that’s why there is a deduction, but it doesn’t equal what you pay.

#154 Nonplused on 11.16.17 at 2:10 am

#89 BobC on 11.15.17 at 8:32 pm
#37 nonplused

“I’m not sure I agree with taxing tips though. Are they income? Or gifts? In theory the business transaction is what’s on the receipt.”

Excellent point. In fact it’s gems like this that has me reading every comment.

The CRA does not consider tips to be gifts, but to form part of earned income. Too bad. – Garth

Ya, I know Garth, but I am not sure I think it’s right. I am about to give my daughters “graduation presents” in the form of cash. Should they be taxed on it?

In theory tipping could go away. It’s not common in Europe and instead the servers just make more and it’s baked into the price.

#155 morrey on 11.16.17 at 2:17 am

I have spent 6 months trying to get a 5k medical expense accepted as a tax deduction. BIZZARE. meanwhile folks with 5million dollar mansions in Richmond pay NADA ZILCH.

#156 Nonplused on 11.16.17 at 2:21 am

#117 Pete from St. Cesaire

I think that was also aimed at me, but I don’t think it is possible they will be able to find a way to tax things that don’t involve money. I might be wrong, but it seems hard to do. They have to at least do a “property assessment”, and tax the value of that. I know from experience that the value of your education and coaching is zero.

#157 Stan Brooks on 11.16.17 at 2:33 am

the prime minister shot back: “we are fully committed to fighting tax evasion and tax avoidance,”

The guy is pretty weak in the head department.
The question is to what extend are his actions legal if he is mentally challenged as to not know the difference between tax evasion and tax avoidance.

It is a weakness of the political system that we have when elected idiots can ruin a country simply because they are elected and want to, kind of of makes you rethink the role of the government when it is headed by morons and incompetents.

The guy openly stated that ALL private corporations are tax cheats, created for that purpose only, now he is coming after legal tax avoidance and deferral.

New Nero with fancy socks?
Not sure yet.
Mentally challenged? Absolutely.
Just watch youtube videos of parliamentary debates.

#158 Stan Brooks on 11.16.17 at 2:51 am

At some point government employees have to understand that they are serving a quasi-fascist totalitarian liberal government.

The guy/T2 is serious, he is committing billions of dollars to CRA to prosecute the middle class according to his understanding of law which apparently qualifies perfectly legal tax avoidance as illegal.

Hitler came to power in the name of democracy. Opposing him and his government turned into a badge of honor.
When will that happen with the current government is the question here.

T2 is becoming very, very dangerous to Canada.

Did you see his exchange with Duarte/the Filipino president?

The guy flies on Aga Khan airplane, has his ministers in caught in conflict of interest, gets his policy advised by Soros, his fundraisers in offshore tax scandals, and has the nerve to thing that he is untouchable as he represents Canada?

#159 nubbers on 11.16.17 at 3:04 am

Cash really does not work well with our modern(ish) society. It would seem that large denomination bills in the US are mainly used for crime and tax evasion:

http://freakonomics.com/podcast/still-using-cash/

That said, the large corporations that I work for are more effectively able to evade tax without resorting to cash payments.

And while we are on the subject, has anyone ever seen a legitimate use for Bitcoin?

#160 Arne on 11.16.17 at 4:10 am

I’m impressed that though you twice mentioned that tax evasion is illegal, you didn’t moralize on that illegality. Good for you.

The fact is that legal and illegal doesn’t always (or ever) equate with right and wrong. If it did, then last year smoking weed was wrong and next year it’s goong to be right.

It’s the same with tax evasion; yes it illegal, but it’s not wrong. And it becomes even less wrong if the majority is doing it because rarely are societal norms “wrong” as we define them.

As for the underground economy, I could go into details of how we could be progressive to combat that rather than the same old “guilt and punish” but the comments section here is no place for rational discourse!

#161 Howard on 11.16.17 at 6:29 am

#138 IHCTD9 on 11.15.17 at 11:28 pm

#112 Wrk.dover on 11.15.17 at 9:58 pm
Harper lowered about the only unavoidable federal tax that lowlife and parasites pay. GST.

————

Super easy to avoid, and reduce on many purchases. We’ve got the Internet these days, Kijiji, EBay, Craigslist etc… never been easier.

Frankly, I’d jump for joy if we ever moved to more of a consumption based tax system like Sweden. Cut my income taxes in half and triple the GST, then give me a lemon to wipe the smile off my face.

———————————————

Such a move would help savers, the untermenschen of our debt-binge world.

Will never happen.

#162 maxx on 11.16.17 at 6:49 am

#8 Ronaldo on 11.15.17 at 6:18 pm

“I once said to someone, ”Money is the root of all evil”.
He responded by saying, ”No it’s not, you don’t see millionaires going around robbing banks, do you?” I thought about that for a second and then replied, “Not so sure about that considering what happened with the banks and their CEO’s back in the 2008 GFC”.”

Agree with your point about the GFC, but it wasn’t only bank CEOs. Central banks rolled out the red carpet on this one and bottom feeders like realtards, shadow lenders and shady investment gurus gorging at the proverbial trough made it worse by putting the fear of god in re buyers and investors with the memes of “buy now or buy never” and fear of missing out on the latest investment “product”.

Following the GFC, stupid government policy has made the fallout last far longer than it needed to be. We’re still wallowing in it. And will for a long time to come. What’s really dumb is that government has kneecapped its own tax revenues by mishandling interest rates over the past 25 years, but most particularly, since 2000.

“For the love of money is the root of all evil” Timothy 6:10.

Money is just a tool, an innocent bystander……

#163 Dharma Bum on 11.16.17 at 7:02 am

So now the country is short about $20 billion a year in tax revenues and has $600 billion in accumulated the debt.
-Garth
——————————————————————–
Yah, well it’s time that our esteemed government figured out a way to stop overspending, to the tune of several billion dollars.

How about they start by immediately cutting out hundreds of useless programs. it’s called belt-tightening. A concept that the government continually expects its citizens to adopt, but is altogether lost on them.

Taxation is theft. Cash is king.

When a new source of taxation is found it never means, in practice, that the old sources are abandoned. It merely means that the politicians have more ways of milking the taxpayer where they had less before.

https://www.goodreads.com/author/show/7805.H_L_Mencken

#164 Down and Out on 11.16.17 at 8:01 am

Anybody tip their financial advisor after a good year in returns?

#165 jess on 11.16.17 at 8:01 am

evaders tax “optimization” ..Asiaciti’s

http://www.phoenixnewtimes.com/news/a-notorious-gold-fraudster-is-hit-with-a-53-million-rico-suit-6462630

https://www.icij.org/investigations/paradise-papers/paradise-papers-firm-managed-millions-carousel-millionaires-fraudsters/

#166 IHCTD9 on 11.16.17 at 8:07 am

#161 Howard on 11.16.17 at 6:29 am
#138 IHCTD9 on 11.15.17 at 11:28 pm

#112 Wrk.dover on 11.15.17 at 9:58 pm
Harper lowered about the only unavoidable federal tax that lowlife and parasites pay. GST.

————

Super easy to avoid, and reduce on many purchases. We’ve got the Internet these days, Kijiji, EBay, Craigslist etc… never been easier.

Frankly, I’d jump for joy if we ever moved to more of a consumption based tax system like Sweden. Cut my income taxes in half and triple the GST, then give me a lemon to wipe the smile off my face.

———————————————

Such a move would help savers, the untermenschen of our debt-binge world.

Will never happen.
______________________________

No it won’t happen. Why would they trade iron clad revenues off my paycheque before I even see it, for taxes that could disappear overnight if I decided to do a little belt tightening?

Not in Canada, not in a million years.

#167 jess on 11.16.17 at 8:09 am

ROGERS: Keep your assets protected from whom? Depends on, you know, North Korea is probably a very safe country to keep your assets if you’re trying to protect it from the U.S. and the West. I’m not so sure it’s safe for protecting it from the North Koreans if they get angry at you. It depends on who you’re trying to escape. I guess places like- well, that’s a tough one, because if you’re trying to protect it from everybody, you’re going to have to find yourself in an obscure country that nobody’s angry with, and which respects the rule of law and the sanctity of private property. I live in Singapore and I have assets in Singapore. But I have assets in various countries around the world. I have assets in the U.K. Some in the U.S.- tying to get my assets out of the U.S. because I expect exchange controls eventually. Switzerland, Austria– I mean these are countries that traditionally have been okay but even these countries, especially Switzerland, is not what it used to be as far as sanctity anymore. Singapore is the answer that pops to mind most of all for many reasons. The problem with that is, that if the U.S. really comes after somebody, Singapore would probably cave to the U.S., depending on the circumstances…

http://www.offshoresafedepositboxes.com/2015/03/27/jim-rogers-names-top-three-safest-countries-to-keep-your-money-and-assets-in/

https://www.asiacititrust.com/2017/11/06/response-to-media-coverage/

#168 meslippery on 11.16.17 at 8:16 am

#40 Smartalox
The new car dealer collected all the sales tax already.

#56 dr. talc
I get 10% off for cash on my chinese food.

#169 crowdedelevatorfartz on 11.16.17 at 8:22 am

@#52 Welcome to Slurrey
“No one is coming after them and everyone else does this too………no one is coming after the others.”
+++++

Please provide their addresses. CRA would like to talk to them.

#170 rental property math on 11.16.17 at 8:26 am

Anyone know what a renter gets back claiming the rent paid on their taxes? One of you renter geniuses should know right?

I’ve only had one renter ever ask me for a receipt. The rest of them I just supplied and told to give it to their accountant because there’s a line item on somewhere..

Just had a tenant move out on the 14th. New tenant on the 15th. I didn’t do much. Cleaned the bathtub with a power drill and new caulking. The new tenant’s mother raised an eyebrow at me.. She asked me if i pulled out the stove.. NO. Did i pull out the fridge? NO. Why should I do that when a renter never will? Then she went in and said she was going to scrub the oven and asked if they were allowed to paint.

Total cost between tenants this time around. About $10. Rents up 10% from a year earlier. I’ll probably pay an extra 0.75% upon mortgage renewal. Easily sustainable. I hope a few other tenants move. Renoviction might be upon them in the coming years. I’m getting pretty good with the tools.

#171 Sonny on 11.16.17 at 8:26 am

Not sure of someone posted this article already, but here it is in case it hasn’t been posted:

B.C. to introduce new real estate rules in 2018

http://www.cbc.ca/news/canada/british-columbia/new-bc-real-estate-rules-1.4404447

#172 IHCTD9 on 11.16.17 at 9:05 am

#150 Pete from St. Cesaire on 11.16.17 at 12:57 am
For those who think digital transactions will save the day, look across our southern border. It won’t happen here unless it happens there first. There’s not a tax hating individual on the entire planet who wouldn’t take US dollars as payment for anything. That goes double for Canadians.
——————————————————————–
I guess you didn’t read what I wrote earlier. Foreign currency will be illegal to possess. You’ll only be allowed to get your hands on foreign currency as you are traveling out of the country by getting it at a place in the secured area of the airport or at a duty-free-shop-styled place at the border. So don’t think for a minute that the people will simply be using US$, Pounds, Rand, etc. Possession will be met with immediate confiscation and a heavy fine for first-time offenders. Automatic jail for large quantities (just like with drugs, where more than a certain amount = trafficking; the amount is the proof).
________________________________________

No I didn’t see your post, it was still in the queue when I typed the above. I’ve also posted a couple more times on the same ideas.

IMHO, the government is not going to be able to control peoples actions to that extent, they have never been successful doing so without an SS/Gestapo – or even then.

Look at tobacco, they taxed the crap out of it back in the 90’s only to repeal the tax 100% trying to stem the newly sprouted flow of contraband from the US. When they thought they had the border sealed up tight, they let the tax hammer fly again – only to chase the whole operation on to the FNR’s where it remains today – now, virtually untouchable.

IMHO, it would be exceedingly difficult to Police hard currency flow from the USA. If the Mexicans can get truckloads of cocaine across, cash should be child’s play. If it could be Policed, the manpower and equipment required would very quickly exceed whatever they might realistically gain in revenue.

The government can make all the scary rules they want, but if there is no plan, will, or funds to put boots on the ground to enforce these rules – nothing will change.

#173 Smartalox on 11.16.17 at 9:07 am

To those who get their outrage on, thinking about taxing volunteers: the proposals that I’ve heard actually considered establishing an hourly rate to allow volunteers to calculate a monetary equivalent to their time spent volunteering for charities, etc., in order to claim that time as a charitable contribution for tax purposes. The intention was to inspire hard working people to contribute more of their skills as volunteers to charitable organizations. Of course, the proposal was panned at the time as a sop to wealthy people who could afford to ‘work for free’, a gift to high-earning single breadwinner who could claim their non-working spouse’s volunteer time as a deduction.

As for the trope about ‘being taxed for learning on the job, as you would learn in school’, I recall getting tax CREDITS for my tuition at University, tax CREDITS for books and supplies, and being allowed to deduct interest paid on my student loans. It was hard at the time, but looking back, it seems to me to be a sweet deal. I guess you had to be there (I mean, educated) in order to appreciate it. If the government would treat apprenticeship the same way as it treats college and university costs, it would be with tax CREDITS and not with taxes.

And these were CONSERVATIVES proposals! Sure, not nihilistic, rage-stoking ‘Red Rose’ Tea Party conservatism, like the kind you get on Rebel media, or the kind you can cut and paste from Russian super trolls on the Internet, but an interesting perspective on how to design tax policy to encourage certain behavior intended to enrich society.

#174 Manitoba Whale on 11.16.17 at 9:15 am

#147 fishman on 11.16.17 at 12:33 am
Hasn’t anyone on here ever been audited? …..These CRA guys are deadly. You’ll be sitting with your newly acquired constant stomach ache while Mr. Pencil zeroes in like a laser beam…
——-

Our businesses have been audited several times over my tenure, and each time it is a real pain in the derrière. We have nothing to hide so it is more of an expensive inconvenience, sometimes an expensive one. Still I shudder thinking of the next time.

Cool story, almost 50 years ago my father’s company was audited by the CRA, called the Department of Revenue back in the day. The office was in an old house adjacent to the business. Cocky as he was back then, he slowly turned down the heat in the old house until the male auditor was chilled, my father thinking that this would speed up the audit process.

Now it is 2017 and my son is complaining about the utilities cost of his rental while attending college. Every other day for a week he turned down the water heater in his rental a little bit, from max heat to the middle. His roommates never noticed.

The apple does not fall far from the tree.

#175 paul on 11.16.17 at 9:23 am

127 Bottoms_Up on 11.15.17 at 10:36 pm

I tip large at restaurants (if you can afford to eat out, you can afford to tip well). But I always tip via debit/credit, so there is a paper trail.
——————————————————————–
The paper trail that leads right to you.
Make sure the wait staff at $10 an hour chips away at that 20 Billion.

#176 paul on 11.16.17 at 9:27 am

#151 Damifino on 11.16.17 at 1:19 am

#94 vf

Speaking of the CRA can anyone out there tell me how to get in touch with them ? I have tried the toll free number dozens of times in the last month and can’t even get on a queue because there so busy !
—————————————————————–
Don’t file they will get in touch with you. lol

#177 paul on 11.16.17 at 9:32 am

All these comments should have a check box.

PUBLIC WORKER

PRIVATE SECTOR

SELF EMPLOYED

#178 For those about to flop... on 11.16.17 at 9:47 am

B.C to ban realtors from being able to represent both the buyer and seller as of March 15 2018…

M43BC

#179 Vampire studies GMST on 11.16.17 at 10:05 am

154 nonplused – you only give a “tip” when you have received a service therefore it is income. If it was a gift you expect nothing in return.

Unless you just randomly walk into restaurants, leave money on the table and then walk out.

#180 MediOgre on 11.16.17 at 10:19 am

Does anyone remember Jean Chretien’s advertisement during his campaign….. “read my lips…no GST”…
He lied. We voted and he lied bold face to the average Canadian ..Canadians that contracted him to fulfill obligations. hmmm. We seem to have an arrangement of not doing what we agree to.

#181 doobie on 11.16.17 at 10:21 am

This is why I was in favour of the tax changes for small business, not that it would change any of these double book systems that the self employed seem to have going.

All the contractors, the wedding photogs, the store owners that I know seem to be able to claim whatever income they want. If they know they will apply for a mortgage in the next few years they bump up their reported income, then it comes right back down after they are approved.

Makes me feel I’m a fool for being straight on my taxes when it seems like everybody else is a cheat, including our PM.

#182 Andre on 11.16.17 at 10:22 am

I find interesting to observe the justifications that people find to do not pay taxes. Tax evasion is just a fancy name for stealing!!

#183 MediOgre on 11.16.17 at 10:24 am

I’d rather CRA sniff around the paradise papers for some illegal activity (that would result in billions in lost/stolen money) than rough up some college students earning tips to pay for over priced secondary education ~ thank you very much.

#184 i.baxter on 11.16.17 at 10:38 am

So true, my wife works for a property management company she is amazed how many people pay there rent in cash every month. She has to run to the bank and deposit buckets of cash. No one ask any questions. Not sure what is going on….

#185 Adam on 11.16.17 at 10:51 am

Hilarious how most people here don’t get it. They talk about how their tax dollars are wasted so they encourage use of the underground economy by paying cash – the less you encourage the underground economy, the cheaper your taxes will ultimately be!

You’ve got a great bunch of readers here, Garth.

#186 Cindy Vanderbilt on 11.16.17 at 11:18 am

More divisive rhetoric to ‘stir the pot’. Its almost Trumpian in its ‘whataboutism’.

Media: “Paradise Papers. Trillions in tax avoidance by rich dudes.”

Garth: “…Whatabout the joe blows who pay in cash??”

Yes. Whatabout it.

#187 Tazi Bnu on 11.16.17 at 11:23 am

I just want to point out that operating as a cash business is not illegal. It’s the not charging sales tax and not declaring the income appropriately that’s illegal. Same with the offshore accounts. Some cash businesses show the price inclusive of sales tax and that is completely legal, as long as they are prepared to provide a receipt with the appropriate values. The small businesses that have less than $30,000 in remit-able sales don’t have to file a HST/GST return, therefore don’t have to charge the sales tax. However, if you charge sales tax you must remit it. I’m sure I’m missing some other important info, but I think I’ve made my point, that cash isn’t evil.

#188 I'm A Believer on 11.16.17 at 11:32 am

I understand your logic on sales tax. However, people still ask for the non-tax cash price at retail biz!! They put their frustration with the government on small biz. As if we created it. When independent small biz invoices for services with HST, often the response is ‘your fee includes the HST’ In other words we’re not paying it. It’s hard to believe in the logic and good of the system when the system pisses away our money!! This in a country that should be amongst the richest in the world. Oh but wait we give away our resources and toll highways.

#189 Cletus on 11.16.17 at 11:34 am

CODE RED!

Boys, Garth just as much as admitted he’s a Revenuer and he’s takin’ down are names . Put the cash where we agreed (under the porch). Catch you on the flip flop.

#190 IHCTD9 on 11.16.17 at 11:44 am

#182 Andre on 11.16.17 at 10:22 am

…Tax evasion is just a fancy name for stealing!!
_________________________________________

Nope. At no time does the government own your days or labour. You can’t steal what you’ve always owned.

Tax evasion is more a fancy name for Expropriation, and trust me – I’m giving the government the benefit of the doubt when it comes to the funds being used for the public good.

#191 Rainclouds on 11.16.17 at 11:47 am

Fed Govt Look for ways to reduce expenditures? That’s funny…..

http://www.hilltimes.com/2017/11/15/public-service-pay-the-bulk-of-new-spending-ask/125549

#192 Lee on 11.16.17 at 11:47 am

I would suspect that due to our tax system there are more tradesmen in Ontario who are millionaires than any other profession or calling except doctors. Given that they can all also make lotsa money building their own homes, over and over again, I don’ t think it is even a close call.

#193 Sus on 11.16.17 at 11:48 am

#170 Rental Property Math

Just had a tenant move out on the 14th. New tenant on the 15th. I didn’t do much. Cleaned the bathtub with a power drill and new caulking. The new tenant’s mother raised an eyebrow at me.. She asked me if i pulled out the stove.. NO. Did i pull out the fridge? NO. Why should I do that when a renter never will?

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

Why? It’s called general maintenance, upkeep and pride of ownership. Letting the crud build up tenant after tenant because you don’t see the point now, or are too lazy to deal with it, might lead to bigger problems and expenses down the road.

#194 Sue on 11.16.17 at 11:54 am

#177 paul on 11.16.17 at 9:32 am
All these comments should have a check box.

PUBLIC WORKER

PRIVATE SECTOR

SELF EMPLOYED

Haha!! but its so obvious, no need.

#195 David on 11.16.17 at 11:57 am

They should bring back the 6% GST asap. Consumption taxes help save the environment by taxing consumption while raising lots of $$$.

#196 LivinLarge on 11.16.17 at 12:01 pm

“I’d rather CRA sniff around the paradise papers for some illegal activity (that would result in billions in lost/stolen money) than rough up some college students earning tips to pay for over priced secondary education ~ thank you very much.”…….. I couldn’t agree more and it makes so much sense from a logistical perspective. However, it’s the logistics of collecting the big money that makes collecting it from thousands of “Joe six packs” so much more lucrative for the CRA.

The big Paradise like potential offenders have legions of specialized legal and accounting talent and well, “da CRA don’t”.

I don’t like this situation any more than you do Mediocre but “that may not be news, but that too, is reality”.

#197 Wrk.dover on 11.16.17 at 12:02 pm

When I drove Airline Limo out of Pearson, forty years ago, tips were my total net. The fares rented the car and gassed and washed it every few hours basically. Today at restaurants where almost always service sucks big compared to at a resort, there is minimum wage paying the worthless aloof wait staff. I hate to tip for that and keep it 10% not including the tax. I usually drink water, rather than pay ransom price plus tax and tip on a beer. There is better beer waiting at home. I do tip cash so the employer doesn’t get a grip on that chicken feed first.

So, yeah I lived on tips once, but wish the whole system would go away. Too many levels of wrong.

#198 IHCTD9 on 11.16.17 at 12:21 pm

#194 David on 11.16.17 at 11:57 am
They should bring back the 6% GST asap. Consumption taxes help save the environment by taxing consumption while raising lots of $$$.
____________________________________

Raise HST 500% and eliminate income tax. I’m all for it! This would change EVERYTHING.

#199 IHCTD9 on 11.16.17 at 12:30 pm

Further to my comments at 134 regarding what Canada needs (other than austerity measures) to ever get back to balanced budgets:

http://www.cbc.ca/news/business/norway-wealth-fund-oil-gas-stocks-1.4405071

I have to assume these Norwegian fund managers know what they’re talking about – especially when it comes to Oil…

#200 jess on 11.16.17 at 12:39 pm

195 LivinLarge on 11.16.17 at 12:01 pm

The Ethical Tax Regime

Under George Rozvany’s ethical tax regime, large corporations would actually pay a lower rate of income tax if they were deemed by the Tax Office to be “ethical taxpayers”; say 25 per cent rather than the present rate of 30 per cent.

How to become an ethical taxpayer? Directors would simply present their “tax position” to the Tax Office, that is, their tax structures and strategy. Then, were these to be approved, they would be classified ethical. And once classified ethical, their “tax risk” would be eliminated.

Broadly, this “tax risk” has two elements: regulatory risk, that is, the risk the Tax Office will haul you through the courts as it is doing, for instance, with oil giant Chevron at the moment. The second is, as EY puts it, “reputation risk”.

It is fair to say that company directors have an obligation to their shareholders to eliminate risk, says Rozvany, both regulatory and reputational, and many would therefore elect to cooperate with the authorities. This would engender better tax behavior, less aggressive transactions, and therefore more revenue to government.

A lower tax rate, zero tax risk; these are surely a director’s duty to pursue. What director would choose to pay 30 per cent if a 25 per cent rate were on offer for being ethical?

“Conducting one’s tax affairs in a conservative manner does not mean a negative financial outcome,” says Rozvany. Rather it eliminates court costs and penalties, and reduces the cost of external advisers and audits and so forth.

“The major audit firms,” says Rozvany, “Would play a significant role in this as their tax strategies/advice on tax positions would need to be evaluated and approved”. read more @

https://www.michaelwest.com.au/george-rozvanys-silver-bullet/

#201 Scutel on 11.16.17 at 12:42 pm

Careful Boys, I think there’s somethin’ queer about the other folk on here to. I don’t mean the big tipping neuroscientists and millionaire fidouchiaries. They’re legit. I was supposed to meet the widow “Pandora” for coffee & ? at Horton’s until i spied the size of “her” love bump from the drive threw window. I had to bump the Fokker ahead a me to hightail it outta there. Stay safe. Cletus

#202 Sober Dog on 11.16.17 at 12:47 pm

#104 Smoking Man on 11.15.17 at 9:39 pm

Alcohol
A great story was never written eating salad.
————–
As a writer who is 20 years sober, I’ve looked into this.

Almost all good writing is done stone cold sober and many great writers are full-time abstainers. Almost nothing of lasting value is made by drunk people.

It takes a bit of grit to be creative when you are clearheaded enough to see just how good your work is but, like anything else, ease comes with practice .

#203 gary smith on 11.16.17 at 12:51 pm

wait-T2 and Morneau were raked over the coals in this blog by some sensitive snowflakes small business owners who believed they were being called tax cheats and thieves.

And now Garth says small business owners (home renovations retail and hospitality, landlords) are tax cheats and thieves.

but, but but…

I said nothing of the sort. The biggest tax cheats are now likely homeowners renting spaces for cash. Evaders everywhere need to understand the cost they’re bringing to bear on everyone else. It’s simple math. — Garth

#204 rental property math on 11.16.17 at 1:05 pm

#192 Sus on 11.16.17 at 11:48 am
#170 Rental Property Math

Just had a tenant move out on the 14th. New tenant on the 15th. I didn’t do much. Cleaned the bathtub with a power drill and new caulking. The new tenant’s mother raised an eyebrow at me.. She asked me if i pulled out the stove.. NO. Did i pull out the fridge? NO. Why should I do that when a renter never will?

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

Why? It’s called general maintenance, upkeep and pride of ownership. Letting the crud build up tenant after tenant because you don’t see the point now, or are too lazy to deal with it, might lead to bigger problems and expenses down the road.

————
The girl’s mother did an excellent job cleaning the stove. Looks like brand new.

I can only maintain it as well as the renters will take care of it. Anymore effort is wasted. I’d rather just fix stuff when it’s broken for the least amount of cost as possible to have more money in my pocket for when I give the renters the BOOT and sell the place.
Not such the glamorous renting life this blog makes renting out to be.

#205 crossbordershopper on 11.16.17 at 1:08 pm

DELETED

#206 John Smith on 11.16.17 at 1:12 pm

Despite the Fifth Estate’s hyperbolic narration in the documentary below, the fundamental ‘rationale’ on being paid in cash remains for your kennel owner: CRA sits on its hands or destroys documents while simultaneously not pursuing KPMG for their Isle of Man tax ‘avoidance’ strategies for the wealthy, in co-operation with a) legislators b) judges assigned to preside over the cases.

https://www.youtube.com/watch?v=6LjMXmGdhrA

“Some correspondence from the Canada Revenue Agency’s former top enforcement official went missing — and appears to have been deleted — in the months leading up to the agency’s secret “no penalties” amnesty offer to wealthy KPMG tax dodgers in the spring of 2015, a Fifth Estate/Enquête investigation has found.

Those revelations may call into question the findings of an external probe that cleared the CRA in its dealings with accounting firm KPMG, which for years had run a secret offshore scheme in the Isle of Man for multimillionaire clients.”

http://www.cbc.ca/news/business/canada-revenue-agency-records-kpmg-1.4113406

Most kennel owners would probably rightly view KPMG being to the CRA as Goldman Sachs is to the Whitehouse; as a two direction revolving door of employment and post employment well paid conflict of interest opportunities.

Because others are dishonest is no justification for your dishonesty. What kind of moral code do you have? — Garth

#207 Overheardyou on 11.16.17 at 1:38 pm

A lot of Paypal business accounts don’t use the account for business. They use it for personal transactions so that when they sell items on Ebay and such, your real name doesn’t show up on the receipt of the buyer. Guess they’ll get swept up in this too, better have your receipts ready!

#208 Newcomer on 11.16.17 at 1:42 pm

#107 Unabanker on 11.15.17 at 9:43 pm
So, let me get this straight. Tax avoidance, which might follows the letter of the law is cool…
….but drywallers and ditch diggers who accept cash for services are “breaking the law.”
————

Tax avoidance is part of the government’s tax policy. The government calls it tax incentives. If you do the kinds of things that the government wants you to do (save for retirement, give to charity, go to school, invest in some types of equipment, hire people with disabilities, etc.) they will give you a break on your taxes. It’s not just legal, it is desirable and, you might say, patriotic, to get in line with these policies and get the reward. It is honest and it is not cheating at all. But lying about how much you earned is cheating. You can tell because it involves lying.

The drywaller should charge the full amount, let the customer pay how they want, declare it, and put the difference in their RRSP, so they don’t have to pay tax on it. By offering the cash discount, not only are they cheating but they are screwing over all the other drywallers who will have to match that price.

#209 Gravy Train on 11.16.17 at 1:43 pm

#154 Nonplused on 11.16.17 at 2:10 am
“I am about to give my daughters ‘graduation presents’ in the form of cash. Should they be taxed on it?

If they’re under 18, then you’d be affected by the income attribution rules!
http://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-74.1.html
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/it510.html

#210 Ponnaps on 11.16.17 at 1:57 pm

There’s no point appealing to ordinary people to do the right thing in an environment where political and big business corruption often go unpunished.. why would people want to pay honest taxes when tens of millions of dollars are then paid to terror accused for eg..

Perhaps the govt should reduce the tax rate to about 5% in order to incentivise people to obtain receipts and record transactions…
an additional 13% on a home upgrade can kill you (esp when you’re paying from already taxed income)

#211 Millmech on 11.16.17 at 2:08 pm

#197
The only thing that raising the hst/gst to a higher amount would do is penalize the lower and middle class more.They seem to be the ones spending the most,the reason the rich are rich is because they save their money and are not caught up with the keeping up with Jones mentality.

#212 John Dough on 11.16.17 at 2:47 pm

Garth is not saying we should throw our hands up in the AIR
and push our friends and neighbours under the BUS
for taking cash. That would not be A FAIR way to do it.

#213 Calgary LDS Temple on 11.16.17 at 2:50 pm

There is another way to deal with taxes. Become a Canadian citizen after leaving the USA. Then never file a 1040 with the IRS again. Not like you are getting any services or benefits for filing in the USA.

#214 Smartalox on 11.16.17 at 2:59 pm

@ Meslippery #168:

If the seller didn’t like paying PST on the sale of the Used car, he should have claimed an ‘input credit’ on the tax that was paid when he acquired the car.

If he’d borne the cost of depreciation, he’d get the refund on the taxes paid to sell it.

Conversely, if he’d put his own money into the asset prior to sale, he could deduct those costs from the capital gains and only pay tax on the remainder.

Either way, he’d end up where he wanted to go (pays less in taxes) but he was just unaware, or unwilling to do the follow-up. So he paid tax on the full sale price.

#215 Smartalox on 11.16.17 at 3:02 pm

@212 Calgary LDS:

You’d think that were true, but my Mrs. is a dual citizen, and a few years ago when the US Gov’t gave all IRS filers a cheque to stimulate spending, she got back several hundred dollars – despite not paying a cent in US taxes ever (having moved to Canada from the US as a child) – though the freebate did just about cover the cost of filing those US returns from Canada.

#216 John Dough on 11.16.17 at 3:07 pm

I have created a ultrasecure test cryptogram for my new business venture. See if you can solve it.

Carl Reiners’ first name
Ketchup King
A writer with a lisp

#217 down_boy on 11.16.17 at 3:19 pm

#145 IHCTD9 on 11.16.17 at 12:28 am

That’s right on par with local suggestions out my way to install meters on private rural wells that were installed, are maintained, and were paid for by the homeowner. Just throw the idea of receiving any kind of service for your taxes right out the window. We need more, so hand it over.
—-
Will you be paying the ‘Nestle rate’ of $2.25 per million litres?

http://www.cbc.ca/beta/news/canada/british-columbia/nestlé-faces-renewed-criticism-as-b-c-drought-continues-1.3145929

#218 NoName on 11.16.17 at 3:30 pm

Blog dogs stop some help, i am almost done reading Double Paradox by Andrew Wedeman, and i need some “help” here. Books stops around 2007-2008, is there similar book that covers same or similar topic but bit it’s more recent book?

#219 FOUR FINGERS WATSON on 11.16.17 at 3:38 pm

Moral code ? Like stashing money offshore and living off a trust fund ?

Worry about your own morality first. You can control that. — Garth

#220 Big Daddy on 11.16.17 at 3:39 pm

Want to out all the cash landlords not paying tax…which is like…99.9%? Make renting a partial write off and mandatory on filling a return. Give each renter say…$50 bucks to check a box…renting…not renting. The CRA can easily cross reference the address to the owner and see if they claimed the income. The non claiming of a rental suite income is pretty much total…especially among our unmentionable groups. But…..now that Air B&B has become a necessary factor in so many owners mortgage calculation, they should be just as easy to nail down if the CRA makes it mandatory for every multiple unit owner to file a seperate form and make Air B&B disclose Canadian files…..just like the Panama Papers and Paradise files are doing….or that big forced disclosure of all Swiss accts a few years back. If the CRA wants to max revenue they must look into real estate related incomes….and hey….if a dummy like me can think of all these simple targets for the CRA…why cant the bright lights at the CRA do the same…..foreign owners and tax cheats should get fried to maybe get the T2 gov to lighten up on honest folks.

And BTW….Canadas tax receipts will start sinking faster now that Trump has lowered corporate taxes down to 20% in the US….who the hell would put up with Canadian tax rates now that the US is opening the doors to businesses like never before and while Trudeau Liberals are actively killing off all resource and energy companies. Look at all the companies that are flooding out of Canada…..even Transcanada is changing its name to disassociate itself with Canada .

This morning the headlines were filled with native leaders who are just waking up to the fact that Trudeau in killing off energy and resource jobs and money has consigned their people to another generation of impoverishment and welfare reliance on a feckless government.

If you voted Liberal and supported the green carpet baggers then you should also not question why your children remain unemployed and your taxes are skyrocketing. Trudeau has announced that the Canadian economy is robust…..what crap….he splashed the balance sheet with a hundred billion in new debt and put hundreds of thousands of new comer dependents into civil service jobs. How much longer are you going to believe the Gerald Butts fairy tale and watch the country sink into a third world morass?

#221 FOUR FINGERS WATSON on 11.16.17 at 3:39 pm

Because others are dishonest is no justification for your dishonesty. What kind of moral code do you have? — Garth
……………..

Moral code ? Like stashing money offshore and living off a trust fund ?

#222 Raincouver on 11.16.17 at 3:43 pm

Bosa Waterfront Office Tower, sold out within 3 weeks at $2,000/sq feet! Mostly Asian buyers. Another way to wash their money. It could be $5,000/sq ft, and it would still sell out. Vancouver has becoming a Bank, where these guys can make a deposit of their ill gotten wealth. Guess who’s paying the price? We are like sheep!

#223 EastSideGTA on 11.16.17 at 3:44 pm

“It’s sometimes hard to see why a homeowner – paying everything out of after-tax dollars – would assist someone else in making income without paying their share. But, hey, sticking it to the man is cool, right?”
————————————————————
This is quite easy…it is after INCOME tax dollars…HST is the second taxation and by paying in cash I save that portion of my ‘after tax’ disposable income. I do not give a damn what that guy does with his return and how CRA is taken for a ride or if he is gonna get audited and busted. All I care is that instead of spending $2260 on my brand new A/C I got away with $1800 (with $200 ‘cash discount’) – total savings for me $460 which can buy my dog a few month worth of fabulous dog chow….

#224 NoName on 11.16.17 at 3:56 pm

#216 down_boy on 11.16.17 at 3:19 pm
#145 IHCTD9 on 11.16.17 at 12:28 am

That’s right on par with local suggestions out my way to install meters on private rural wells that were installed, are maintained, and were paid for by the homeowner. Just throw the idea of receiving any kind of service for your taxes right out the window. We need more, so hand it over.
—-
Will you be paying the ‘Nestle rate’ of $2.25 per million litres?

http://www.cbc.ca/beta/news/canada/british-columbia/nestlé-faces-renewed-criticism-as-b-c-drought-continues-1.3145929

I personally dont like nestle water deal, but if you want to be concerned and sirius about water, read this. (older 2009)

https://www.thestar.com/news/gta/2009/06/11/ontario_drinking_water_leaking_out_of_pipes.html

As much as one-quarter of Ontario’s treated drinking water – enough to fill 131,000 Olympic-size pools – leaks out of pipes before ever reaching a tap. And that’s costing water users at least $700 million annually, says an engineer who studied the issue for the Residential and Civil Construction Alliance of Ontario.

#225 homes = ATMs on 11.16.17 at 3:58 pm

http://www.macleans.ca/economy/realestateeconomy/how-canadian-homes-became-debt-traps/

#226 screwCRA on 11.16.17 at 4:02 pm

CRA recently seized my company’s bank account. Said we hadn’t paid our taxes. We told them we had.

CRA then notified some of our clients we had unpaid taxes and any funds owing should be sent to CRA, not us.

We told CRA we had paid our taxes. CRA looked into it. Turned out we had paid our taxes. Evidently, CRA made a “mistake”.

We asked to get our seized funds back. CRA said, NO, we’ll simply keep them and apply them to the next period’s taxes.

Those funds were earmarked for capital equipment upgrades. They didn’t happen.

No notice sent to our clients who now think we’re deadbeats.

Just sayin’.

#227 Entrepreneur on 11.16.17 at 4:06 pm

And the people of Canada have spoken but will be ignored and taxed more. And/or the CRA will go after you.

Back in the seventies I noticed the cash transactions when unions/trade took over non ones then the GST came along (#180 MediOgre, Jean Chretien election promise to eliminate the GST but lied)now SB only go as high as allowed ($30,000.) to save themselves, now the HST blended taxes and in the near future the National Carbon Tax. Tax, tax, tax upon tax, tax, tax.

I agree with #144 Irony about Canada has been sold out and #43 rainclouds about how the Government should be responsible and stand up for.

I agree with #157/158 Stan Brooks that T2 is dangerous to Canada.

#228 FOUR FINGERS WATSON on 11.16.17 at 4:08 pm

#218 FOUR FINGERS WATSON on 11.16.17 at 3:38 pm
Moral code ? Like stashing money offshore and living off a trust fund ?

Worry about your own morality first. You can control that. — Garth
………………………..

Easy to have a moral code and do the “noble thing” when you are well off. Not so easy for people pinching pennies and just trying to survive and make ends meet. I remember.

#229 tulips on 11.16.17 at 5:38 pm

#218 FOUR FINGERS WATSON on 11.16.17 at 3:38 pm
Moral code ? Like stashing money offshore and living off a trust fund ?

Worry about your own morality first. You can control that. — Garth
………………………..

Easy to have a moral code and do the “noble thing” when you are well off. Not so easy for people pinching pennies and just trying to survive and make ends meet. I remember.

—————————————————————-

Anyone can choose to handle finances honestly and with morality, regardless of financial status. Same goes for saving money or donating money. If you cannot afford any of these things it is because you are using the wrong reference for your financial decisions. Just look around you – there’s always someone better off, and someone worse off. If you keep envying the person who is better off and striving to buy the things they buy, you will always fall short and be unable to afford saving and giving and acting on morality. But if you look at the folks around you who have less to work with than yourself, it becomes a lot easier to save and give and choose honesty. It’ll also make it easier to appreciate what you have and to be thankful.

My parents taught me that. They went through a period in the 1980’s where times got quite tough and they drove a beater car, never bought new clothes, cooked the most simple meals on a frugal budget, and spent no money on vacations or any other luxuries. But they always saved a little bit just incase things got worse, and donated a little bit to support others for who things were worse, and chose to be honest and upright in their financial dealings. That example was far more valuable than any trust fund they ever could have given me.

#230 Guillaume on 11.16.17 at 5:40 pm

Worry about your own morality first. You can control that. — Garth

You are a great virtual father Garth Turner !

Talking about morality, the government should make illegal to buy cigarettes, weed, alcohol, or lottery with a credit card. Lot of great comments today !

#231 crowdedelevatorfartz on 11.16.17 at 6:05 pm

@#174 Manitoba Whale

A friend of mine who is a self made millionaire once had Revenue Canada show up to perform an audit.
This guy’s work camp/ home was out in the boonies of northern BC and they had a feral cat problem. Humndreds of cats roaming, mating, fighting everywhere in , around and miles from the camp.
So there were wild cats everywhere.
The solution.?
A bounty and everyone carried a shotgun in their trucks and leaning against the wall in the office.
Mr Auditor shows up.
Sits down and right outside the office…KABOOM!
Several minutes later, right outside KABOOM KABOOM KABOOM!
About half an hour later. The auditor finds something and calls my buddy over.
“Could you look at this?”
My buddy spies a cat out in the yard and says,” Hang on one second.” Grabs his gun, opens the window and KABOOM KABOOM KABOOM.
Put the gun down and says , ” Sorry, what were you saying?”

Mr Auditor left about half an hour later.

#232 Pseudonymoustache on 11.16.17 at 11:52 pm

“It’s sometimes hard to see why a homeowner – paying everything out of after-tax dollars – would assist someone else in making income without paying their share.”

It is? Seems pretty obvious to me, the payee saves some income tax, and the payer saves the HST… and/or there’s a cash price.

When the government is perceived as ‘them’ instead of ‘us’… why would you not want to screw ‘them’, if you feel like ‘they’ are screwing you?

Politicians that lie from day one, governments that twist the numbers, loot the funds, hide the tax increases in fees, make you wait a year to get back the money they took in the form of IE…

Alienate enough people, and this is the first way most folks will object.

Double that for taxes that fail the smell test… how many people have a moral objection to cheating on the sales tax on used vehicles? It’s just too blatant, ‘they’ taxed that money when the buyer earned it, and ‘they’ taxed the vehicle purchase when the car left the lot… and then ‘they’ tax it again at every sale. Ridiculous.

Don’t you start to wonder, standing in line surrounded by people who all agree that screwing the system is A-OK… is paying full ticket being moral and honest, or just being a chump?

#233 Jack on 11.17.17 at 12:34 pm

Enjoy your blog Garth.

A question seeking your advice.

We had a variable mortgage rate for years and watched the mortgage fell very quickly.

In the last renewal we combined the line of credit with the mortgage and kept the variable rate. But now it has become very painful to watch the hard earned dollars going toward mostly interest. Went from 2.4% to 3.1% in less than six months.

Would you recommend locking in now?

Thanks in advance.

#234 Lacho on 11.17.17 at 2:19 pm

The “smart money” divesting from some of their real estate assets is inflating the TSX. It closed under 16000 for a couple of days, but appears to want to close over that point today. It makes sense to me that it approaches 16700+ by mid-december. I would love to hear Garth’s forecast regarding the index for the next year; especially relative to real estate dynamics. ;)