Quote: Originally Posted by PoliticalNick
That's the catcth here.
Tax Evasion is illegal and can be investigated by the CCRA and RCMP.
Tax Avoidance is the legal practice of hiding assets or profits in offshore tax havens where we cannot touch them unless the funds or assetts are repatriated into Canada. A quote form RBC's 2010 anual reprt actually admits that if their offshore profits were repatirated for the last 3 years they would owe CCRA almost $2.5 billion. This does not include all the indivdual's accounts in those susidiaries, only the banks tax obligation.
The law needs to be changed and the loopholes closed to put this country on its financial feet again.
To investigate tax avoidance would be pointless since it could not be legally enforced anyway. Perfectly legal. Now if you're talking about researching the matter so as to reform the law so as to close off tax loopholes, that's another matter.
But then we must be careful not to hurt people with it either. For instance, imagine international businessman who has to live abroad and pay foreign taxes sometimes, or inversely a foreign businessman who lives in Canada. Though the name sounds important, there is no guarantee that all internatinal businessmen earn large incomes. There may be a few earning average incomes in spite of the prestige of their job. One way to avoid issues there I think would be to make taxes based on residency. In other words, if you reside in Canada, you pay taxes to Canada, and if you don't reside in Canada, you don't pay taxes to Canada. That might be one way to avoid such problems of double taxing, the opposite problem of tax evasion.