Tuesday, February 17, 2009

CRA's "WAYS"

I just finished my book on CD, which included a revised chapter on the national application and strategic plan for subsistence allowance. One aspect of the chapter discussed the historic (and not so historic) ways CRA “deals” with issues of possible conflict. I provided an example of a not so publicized situation where CRA had the “Moral High Road” in dealing with a tax issue. Instead of ethically dealing with the problem, CRA chose to lie, manipulate and harass citizens in blatantly illegal procedures. In the specific case I outlined, all that needed to be done was change a particular law (as it was written in the Income Tax Act). However, instead of closing a legal opportunity they chose to stalk and intimidate individuals into an economic stupor. It was (and is) a deeply sorrowful day for our Country.

However, it revealed the “mind” of CRA. Its power is derived from its ability to harass one specific individual (with virtually unlimited resources) until economic oblivion is achieved. It can also focus on a small or medium size group of citizens (ranging sometimes in the tens of thousands or hundreds of thousands).

Too often Canada Revenue Agency has been promoted as an entirely law abiding body of beurocrats. This, unfortunately, is not the case. When given an opportunity and a reason to abuse, they can be brutal. It reminds me once again of Silvio Berlusconi, the President of Italy who stated “when taxes are too high it is morally acceptable to evade them”. It is my solemn determination to avoid this type of national attitude. Too many accountants across Canada hear clients try and justify “tax evasion” every year. Granted, they do so because they feel they are being unjustly taxed. It’s not the taxation that motivates resentment and abuse but the “unjustness”. That is one of the primary reason I am an advocate of subsistence allowance. If properly and nationally implemented, subsistence may change our Countries anti-government sentiment (starting with truckers of course).

If CRA (with the Finance Ministers approval) focuses on shutting this just and non-discriminative opportunity down, I fear a much more vocal carnage may occur. Eventually, the only other option for equality may come in a flat tax (something I don’t view as entirely necessary at this time). A flat tax would eliminate the jobs of 50-70%+ of all auditors and CRA workers as well as accountants and tax lawyers (an efficient but not very popular move for sure). I trust the current Canadian leaders might see the ultimate outcome of the conflict, embrace justice and equality while refusing to comply with another tax scandal.

So far they have, in fact they have been more than just co-operative. But politics is politics….

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