From: Canuck57@nospam.com   
      
   On 25/06/2013 7:50 AM, Alan Baggett wrote:   
   > Beware the tax nightmare disguised as a gift : CRA SOTW   
   >   
   > TONY WILSON   
   > Vancouver — Special to The Globe and Mail   
   > PublishedTuesday, Jun. 04 2013, 5:00 AM EDT   
   > Last updatedTuesday, Jun. 04 2013, 9:38 AM EDT   
   >   
   > There are countless things to keep in mind when you’re a small-business   
   owner dealing with the Canada Revenue Agency (CRA). It explains why   
   accountants and tax lawyers are usually so busy advising their clients about   
   the perils of the Income Tax Act    
   and the benefits of remaining on the right side of the CRA.   
      
   Yep, so much so it isn't for many worth doing business in Canada.  So   
   complex it is very expensive to deal with it.  Part of why retail costs   
   are high too, as this byzantine tax regime costs a lot to deal with.   
      
   > One of the many perils involves gifts that successful entrepreneurs or other   
   business people might make to family members, say for a first house or a   
   wedding, particularly if – at the time the gift was made – the entrepreneur   
   was offside with the CRA    
   and owed tax.   
   >   
   > It is the recipient of the gift who may pay the real price.   
   >   
   > Vancouver tax lawyer Jeff Glasner likes to explain the scenario and its   
   ramifications in these terms: Let’s say “Mandy” is raised by her mother   
   because her father abandoned them years before. Whether guilt made him do it   
   or not, Mandy’s father “gifts”    
   her $100,000 for a dream wedding. The problem is, at the time, her father and   
   his unincorporated business owed the CRA money.   
   >   
   > Years later, Mr. Glasner says, the ramifications could play out this way:   
   Mandy is pregnant with baby No. 3, her husband has been laid off, and the   
   small business she owns is struggling. A letter comes in the mail from the CRA   
   saying Mandy is now    
   responsible for $100,000 of her father’s tax debts.   
      
   Rightfully so too as this is tax evasion.  Mafia does this all the time,   
   very little if any is in Rizzuto's name.  The idea is to get the money   
   in a place CRA can't get it.   
      
   In this case, he shifted money to the wedding knowing in time CRA was   
   going going get it anways.   
      
   It is "family" fraud practiced all the time.   
      
   Politicians even use it.  Get some insider info, have the wife, brother   
   or parents, even kids invest on the insider tip but because the   
   politician didn't invest, it looks kosher...unless you look at the   
   relationships.  Get some cash, get family members to pay the bills as if   
   it isn't in your name, it isn't going to be tracked.   
      
   Its why the mafia has family members owning a funeral business, at arms   
   length they are free to do business without Rizzuto Sr. liabilities.   
   They even profit buy interning their own.   
      
   So in my books, yes, go get the money.  Fact is Glasner's tax   
   criminality setup his own offspring with a tax liability.   
      
   Pay up cheats!   
      
   But does also highlight the CRA double standard.  These people are small   
   enough and without political connections so easy to prosecute.  That is   
   why Rizzuto "family" businesses operate with impunity.  Between judges   
   on the take and enforcers, they can fix CRA good.   
      
   One rule for rich and powerful, another rule for commoners.   
      
   --   
   Liberal-socialism is a great idea so long as the credit is good and   
   other people pay for it.  When the credit runs out and those that pay   
   for it leave, they can all share having nothing but debt and discontentment.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)