45c9a78c   
   XPost: can.general, can.politics, ott.general   
   From: campbell@neotext.ca   
      
   On Tue, 10 May 2011 10:40:00 -0700, Alan Baggett wrote:   
      
   > CRA runs secret program to monitor the Wealthy :CRA SOTW   
   >   
   > Taxman eyes fiscal dwarves   
   > A new way of going after wealthy tax avoiders borrows from the Aussies.   
   >   
   > By Matthew McClearn #sponsor table, #sponsor td { width:auto !   
   > important; }   
   > /canadian_business_magazine/index.jsp/canadian_business_magazine/   
   > index.jsp   
   >   
   > Humorist Will Rogers once claimed income taxes made more liars out of   
   > Americans than golf. The Canada Revenue Agency has commenced a cloak-   
   > and-dagger initiative to find out whether Canada's ultra-rich have   
   > become similarly corrupted. Vaguely dubbed the "Related Party   
   > Initiative," it targets Canadians with assets worth more than $50   
   > million — or whose assortment of private companies, offshore trusts and   
   > charitable foundations number more than 30. Unless you're cavorting in a   
   > pile of cash while reading this, you aren't likely among the targets;   
   > according to the OECD, there are only approximately 550 Canadians worth   
   > that much.   
   >   
   > Historically, CRA paid most attention to corporations, which afforded   
   > the greatest revenue opportunities. It scrutinized HNWIs (high-net-   
   > worth individuals) with known links to tax havens, but otherwise "the   
   > tradition has always been to treat them like other taxpayers," says   
   > Osgoode Hall Law School professor Neil Brooks, "and simply audit them on   
   > an individual basis." This approach left CRA with little understanding   
   > of the HNWIs accumulated wealth, or how it was arranged. Meanwhile, a   
   > growing coterie of accounting, law and tax specialists helped make the   
   > affairs of the hyper-affluent ever more complicated. "I think tax   
   > administrators suspect one reason there are so many entities is so that   
   > it doesn't look as if they're as wealthy as in fact they are," Brooks   
   > says. "They call it fiscal dwarfism."   
   >   
   > The Australian Tax Office pioneered a new, holistic approach: in 1996 it   
   > established its High Wealth Individuals Taskforce. During its first   
   > decade, the task force collected an additional A$2.1 billion in revenue   
   > and disallowed an additional A$1.8 billion in losses. In 2004, the   
   > Aussies briefed CRA on its progress. "This is what put us on that   
   > track," says Fred O'Riordan, national adviser at Ernst & Young, who held   
   > a variety of senior positions at CRA while the program was being   
   > developed. By mid-2007, CRA had already audited a dozen HNWIs — and   
   > evidently scared up some additional revenue. "We've had very good   
   > success with that project," O'Riordan told a parliamentary committee   
   > that year. "We'll probably be converting it into a permanent program."   
   >   
   > And so they did. Recently, reports surfaced that unnamed wealthy   
   > Canadians received letters from CRA, along with lengthy new forms and   
   > questionnaires demanding information about related entities, such as   
   > detailed financial statements, organizational charts and minutes from   
   > directors' meetings. CRA demanded a response within 30 days.   
   >   
   > The U.S., Japan, Britain and Germany have all introduced task forces   
   > targeting HNWIs. Brooks says these help preserve confidence in the tax   
   > system by demonstrating that even a modern-day Croesus must pay taxes.   
   > Surprisingly, the OECD reports that such programs have been well-   
   > received: the rich and their advisers often prefer having a single,   
   > specialized contact point with the tax authority. Australia and the   
   > United States have trumpeted their HNWI programs: "We believe that being   
   > open and accountable about our compliance activities encourages   
   > voluntary compliance," explained the Australian Tax Office in a brochure   
   > detailing its program.   
   >   
   > Alas, CRA rejects such transparency. It declined to make anyone   
   > available to answer basic questions about the Related Party Initiative.   
   > One veteran tax lawyer interviewed had never heard of the initiative and   
   > wanted to learn more. Fiscal dwarves beware: the taxman is sneaking up   
   > on you.   
   >   
   >   
   > ----------------------------------------------------------- Miss a Tax   
   > Tale Miss a lot!   
   > Visit the CRA SOTW Library at http://canada.revenue.agency.angelfire.com   
   > ------------------------------------------------------------ Alan   
   > Baggett – http://taxcollectorsbible.com/ – Tax Collector’s Bible   
      
      
   Ooo.  Special treatment for the ultra rich.  What an innovation.   
      
   Dhu   
      
      
   --   
   Duncan Patton a Campbell is Dhu >>> Ne Obliviscaris   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)