21badcd6
XPost: can.politics, can.atlantic.general, misc.taxes
XPost: ns.general
From: iwas@thebeach.com
In article
<7162f20c-2c8d-4670-8c21-7ed24f096b6d@hd10g2000vbb.googlegroups.com>,
Alan Baggett wrote:
> What Brian Mulroney did that Encouraged Tax Evasion - Part 2 : CRA
> SOTW
>
> What on earth could a former Canadian Prime Minister ever do that
> would encourage some Canadians to avoid properly declaring their
> earned income?
>
> Well, let me tell you on a little trip down memory lane.
>
> After Brian Mulroney quit the Prime Ministerıs job but was still a
> Member of Parliament he accepted cash payments from Karlheinz
> Schreiber. He accepted $1000 dollar bills, delivered in brown paper
> bags, in a series of secret meetings in 1993 and 1994.
>
> In 1997 UNDER SWORN OATH Brian Mulroney denied any significant
> dealings with Schreiber.
>
> In 1999 Mulroney stated that he had accepted at least $225,000 in cash
> (and perhaps as much as $300,000) from that same Schreiber that he had
> previously denied having any dealings with. The cash was stashed in
> his home safe and in a deposit box in New York. A great way to hide
> assets from the prying eyes of the CRA because there is no paper
> trail. And when there is no paper trail it sure is easy to avoid
> declaring that income on your tax return. Which is exactly what Brian
> Mulroney did. He conveniently forgot to declare at least $225,000 (and
> perhaps as much as $300,000) on his yearly return of income.
>
> So, to be clear, Mulroney has hundreds of thousands of dollars in a
> safety deposit box AND IN HIS VERY OWN HOUSE yet he forgot to declare
> this money on his tax return.
>
> And Brian forgot these hundreds of thousands of dollars that he was
> steps away from in his own home for several years. In fact he forgot
> until 1999 when Schreiber was under criminal investigation in Germany.
> Only then, after threat of exposure, did Brian Mulroney suddenly
> remember these hundreds of thousands of undeclared untaxed income that
> he was just steps away from in his home.
>
> How this guy can forget hundreds of thousands of dollars he is just
> steps away from yet manage to remember a tricky combination lock on a
> home safe is beyond me.
>
> And Mulroneyıs excuse for not declaring the income? He stated that the
> money was simply a retainer. For services to be rendered at a future
> date. When he rendered the services then he would declare the money as
> income.
>
> But if you know anything at all about Income Tax in Canada then you
> know that money is taxable in the year that it is received
> regardless of when it is earned. Section 12 requires such income to be
> reported. And since this is a case of future services, if the services
> have not been delivered by the end of the year then section 20 of the
> ITA allows for a reserve to be deducted. Which means you would declare
> part of the total payment as income.
>
> Now Mulroney said that he intended to follow the law. So then why did
> he not declare any reserve on his 1995 tax return? Or 1996? Or 1997?
> Or 1998? Because though the services had not been rendered some of
> that reserve has to be declared as income. Yet Mulroney never declared
> a penny of this.
>
> And yes, Brian Mulroney did have professionals do his taxes. And they
> WOULD know the tax law. But if Mulroney somehow forgot to tell his tax
> pros about the $225,000 then how could they include it on his tax
> return?
>
> They couldnıt.
>
> NEXT WEEK: How the Canada Revenue Agency abetted Brian Mulroney - Part
> 3 : CRA SOTW
That's all he got caught with, but what else did the scammer get away
with?
--
"You can't solve a problem on the same level you created it."
- Albert Einstein
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* Origin: you cannot sedate... all the things you hate (1:229/2)
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