Monday, July 27, 2009

Don't lift my Corporate Veil baby.

In a shameless decision that only served to illustrate that the Tax Court of Canada is indeed a Kangaroo court, for the second time the court ruled in it's own favour in my appeal of the application of the foreign tax credit.
http://decision.tcc-cci.gc.ca/en/2001/2001tcc20005196/2001tcc20005196.html

In a very unusual situation, the Crown actually opened the appeal admitting it had made a mistake in applying the tax law to my situation but without blinking an eye, the Crown turned around and introduced yet another argument that they thought would continue to rob me of my hard earned and legitimate wages.

Even more difficult to imagine, the judge ALLOWED the Crown to introduce AND PERSUE this second line of attack. In the end the Tax court again ruled in it's own favour. Dirty pool the likes that few people would believe. After all, why would you expect the Tax court to rule in your favour anyway?

The result was that I had to file my last appeal with the Federal Appeal Court of Canada. In a pivitol decision, the court slapped the hands of the Tax department for their ferocious handling of the case and rendered a decision including damages on my behalf.
http://decisions.fca-caf.gc.ca/en/2002/2002fca258/2002fca258.html

And what was the issue that swung the decision in my favour? Revenue Canada lifted the corporate veil. The judge explained quite clearly what this legal concept was all about in the decision above but for you and me, what we need to know when Revenue Canada comes knocking, is that if we say that's the way we run our company and there's no evidence of a "sham", then the tax man is obliged to accept our explanation and work with it. They can't gather evidence without having a specific suspicion and they certainly can not use evidence gathered against you to tell you that you run your company any other way that you explained it.

So there's two important concepts in there and one BIG caveat.

If there's no evidence of a "sham":
1) They can't gather evidence without a reason why. That means NO FISHING EXPEDITIONS.
2) They can't tell you the way you run your company. It YOUR company and you tell THEM the way it works and they must accept that and work with it.

Modern Day Privateers

Questionable decisions by the courts in itself these days is a topic that I will continue to beat the drum on whenever possible. Why? Because courts and judges are here to uphold and administer the law, not make their own law. When there are clear and concise definitions within an act or regulation and common law has been praticed thus for many years, there is no interpretation required.

For some cases like "Caisse Populaire Desjardins de L’est de Drummond v. Her Majesty the Queen in Right of Canada, 2009 SCC 29" however, the clear interpreataion of the law was muddied by the presiding judges when they ruled in favour in Revenue Canada instead of Caisse Populaire and gave the rights of the tax authority priority over the rights of the financial institution as well as the undertaking of a term deposit from a third party.

Now don't misunderstand me! I am no more a fan of that other institution in Canada that is little more than a legalized bandit as well. The fight over the spoils of a bankrupt business between the bank and Revenue Canada looks like the jackal at odds with the vulture over who gets to pick the bones of the carcass.

Never the less, the court granting Revenue Canada priority over the bank who had the first caveat over the business because of a defaulted line of credit is again so wrong that one must only come to the conclusion that Revenue Canada and it's agents are the modern day Privateers who have been granted all rights by the King of Canada to plunder citizens and businesses within the land.

Disgusting.

Our link to the story as reported on TheCourt.ca:
http://www.thecourt.ca/2009/07/21/third-party-liability-in-insolvency-cases-favor-revenue-canada/

No Longer Guilty but a National Embarrassment to be forgotten.

My first case so to speak is not the one that I was originally going to post. That will be saved for later. It is instead, a case that I have just become aware of: The Irvin Leroux case. What the case illustrates fellow Canadians, will be a recurring theme here.

Revenue Canada mistakenly determined that Irwin owed more than one million dollars in taxes. Mistakenly should really not be the word here because Revenue Canada clearly has a pattern of not knowing it's own rules or brazenly ignoring them and preferring intimidation as their primarly modus operandus. Through the whole sordid affair RC has cause the poor man nothing but heartache and pain and bankruptcy and in the end admitted their mistake but refuse to reinstate the man's holdings and assets to the state they were in before they intruded on his life and ruined it. Would it not have been a completely different story if Revenue Canada first had to prove Irwin's supposed guilt in a court of law?

Join Irwin on his group wth Facebook , search for Irwin on YouTube, see the CBC article on him, or just Google him yourself and follow up this horrific story of the Canadian dream gone wrong.

You are living in a country where YOU ARE GUILTY UNTIL YOU PROVE YOURSELF INNOCENT under so many statues that indeed this country might be considered to be on the doorstep of a police state. Don't be alarmed that I just used a nasty phrase to describe our idyllic existance in our country; be alarmed that you didn't notice it happening. Boiling frogs and other such stories will all be fodder for my cannon in the near future.

Introduction

I needed a place to sound off and I needed a forum to share these experiences and facts with fellow Canadians who don't realize what lurks below the surface of our idyllic Canadian life.

As you'll find out, that's not my reality or the reality of many Canadians. We're living the alternative Canadian reality.

My point in this is to illuminate your life and have you become an active part of the real Canada that you love and live in. This is our country and we need to reclaim it!