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Opinion

Taxpayers DO have the right to remain silent

Published

6 years ago

7 minute read

A taxpayer-friendly unanimous Federal Court of Appeal ruling came out this week in MNR v Cameco [2019 FCA 67]. At issue was whether or not the Minister (through the CRA) has the authority to compel oral answers to oral questions from taxpayers or their employees.

In his ruling, Justice of Appeal Rennie stated “…the Minister does not have the power to compel a taxpayer to answer questions at the audit stage…”, however, it may be in the best interest of the taxpayer to provide reasonable answers to reasonable questions in order to expedite the process. The full entire ruling can be found and read here

This ruling simply re-confirms, that even in an audit, you (and your staff) have the right to remain silent, and that the Minister’s powers are limited to physical evidence.

An exception to this is you are required to provide assistance in locating and providing that physical evidence, which may need to be orally.

Personally, when dealing with a very large number of taxpayers on our own office, we want to be certain that the file that the CRA is talking about is the same file in front of us. As such, we are a firm believer in the Canadian Home Builders’ Association motto that is ironically supported by the Government of Canada: “Get it in Writing.”

I am not advocating answering no questions, as the Minister (CRA) still has the ability to issue reassessments, thereby shifting burden of proof to the taxpayer further to disprove the reassessment.

I am, however, advocating at a minimum to get those questions detailed, and in writing. This will help to provide clarity and allow for proper thought in your answers as opposed to stating something with unintended consequences.

Here is a little example of what happens when you don’t get it in writing: in my dark-side days as a field auditor with the (then called) CCRA, we used to ask prying questions that the taxpayer had no idea they were answering.

For example, in one particular circumstance I was reviewing a file where it was suggested that the taxpayer was doing under-the-table cash jobs. This meant I would have to be creative in figuring out the taxpayer’s cost of living, and ruling out other sources of income.

Meeting in a quiet restaurant in a small Saskatchewan town, I was eventually able to have the taxpayer relaxed enough to think that we were having a normal conversation. Just a couple of ‘Riders fans that aren’t a fan of Ottawa, but hey, I have a job to do. When the taxpayer started complaining about the government, I joined in:

“Hey, I hear you. I’m not some suit from Ottawa. I’m from Regina. I mean both the feds and the province already get enough out of me from tax on my smokes.”

I don’t smoke.

The taxpayer didn’t know that, but the anger was timely because the province had just raised up the cigarette tax the previous year so packs were well over $6 a pack.

“Yeah I know”, the taxpayer said, “I smoke a pack a day”.

Music to my ears as a tax auditor, the taxpayer just told me that they need ($6 x 365) = $2,190 of after-tax income just to feed their cigarette habit.

I continued, “That’s terrible! Between getting our money on that, and getting it at the casino, it’s just crazy how much they make it hard to enjoy our weekends.”

“Yeah, I don’t win nuthin’ at the casino either,” the taxpayer stated.

To me I heard ‘I didn’t have any non-taxable casino winnings. In fact, the taxpayer likely had lost money in the year. This means the taxpayer needed to have more disposable income to gamble.’

The conversation continued for a good 30 minutes. Once I was armed with more knowledge of the taxpayer’s lifestyle and spending habits, I went to work. Bank statements, receipts, mileage information, fuel costs, type of vehicle, etc.

We would use information tools not only from Statistics Canada for price of fuel in different regions, we would also use websites like www.fueleconomy.gov that provide different estimated fuel consumption based on type of use and mileage going back to cars from the 1980s. Then we work backwards to see if the numbers made sense with respect to the taxpayer’s vehicle and costs.

When it was all said and done, I used the results of our conversation against the taxpayer. When I was finished, I found over $30,000 in an income variance between the taxpayer’s living costs and change in net worth compared to what was reported. Not only that, but the taxpayer had already backed themselves into a corner because of the questions that were answered which I had documented.

My guess is that in conclusion, the taxpayer thought they should have got the questions in writing instead of meeting me at a restaurant.

—
Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr is the President & Founder of CGL Strategic Business & Tax Advisors; you can find out more about Cory’s biography at http://www.CGLtax.ca/Litzenberger-Cory.html

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CEO | Director CGL Tax Professional Corporation With the Income Tax Act always by his side on his smart-phone, Cory has taken tax-nerd to a whole other level. His background in strategic planning, tax-efficient corporate reorganizations, business management, and financial planning bring a well-rounded approach to assist private corporations and their owners increase their wealth through the strategies that work best for them. An entrepreneur himself, Cory started CGL with the idea that he wanted to help clients adapt to the ever-changing tax and economic environment and increase their wealth through optimizing the use of tax legislation coupled with strategic business planning and financial analysis. His relaxed blue-collar approach in a traditionally white-collar industry can raise a few eyebrows, but in his own words: “People don’t pay me for my looks. My modeling career ended at birth.” More info: https://CGLtax.ca/Litzenberger-Cory.html

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International

Seattle Police Department investigating attack on journalist during Antifa protests

Published on June 21, 2025

By

From The Center Square

By 

“I turned around and somebody pulled him back and he kicked me in the face. I pulled out pepper spray and I nailed him in the face, and then I retreated and called 911 and then the police never showed up.” Higby said he waited for police for about 45 minutes but they never came.

Seattle Police are investigating an attack on an independent conservative journalist last weekend during anti-Trump and anti-ICE rallies in Seattle.

Cam Higby says he was assaulted by Antifa members as he attended the sometimes violent “No Kings Day” protests in Seattle at a Department of Homeland Security Building (DHS) on June 14.

Separately, independent journalist Brandi Kruse says she also was assaulted by Antifa members in Tukwila, just south of Seattle. Both attacks were captured on video posted to social media.

“It was out of nowhere, completely out of nowhere that they got violent,” said Higby, whose attack was captured on vide and posted to X. The attack left him bloodied, bruised and with a concussion that is still causing headaches, vision impairment and memory issues nearly a week later, he said.

In a Friday interview, Higby told The Center Square he had been covering the protests in Seattle all day and took a seat on the ground near the federal building by himself when the assailants came out of nowhere.

“They took over the streets, they lit fires to cars, they shot fireworks at cars. Then it’s out of nowhere where this guy yells, ‘Hey Cam, it’s time for you to leave,’ and they charged me and I knew one of them and I’d identified him earlier in the night because he threatened to kill me three weeks earlier,” Higby. told The Center Square

The attacker he was referring threatened to kill Higby in an Instagram post, he said, which was reported to police.

“They crossed the street to get to me and charged me and before I could stand up, I was pinned up against the wall,” said Higby. “They were grabbing at my gas mask and my helmet and just keeping me in place and one of them picked me up and choked me out from the rear. And then he released me, punched me twice in the head with SAP gloves which were filled with steal or lead shot. I turned around and somebody pulled him back and he kicked me in the face. I pulled out pepper spray and I nailed him in the face, and then I retreated and called 911 and then the police never showed up.”

Higby said he waited for police for about 45 minutes but they never came.

Video journalist Jonathan Cho, who was also covering protests, picked him up and took him back to his car across town, Highboy said.

Higby said he went to urgent care the next morning and then to the emergency room when his symptoms related to the concussion were getting worse.

“They said if I had a brain bleed, I’d already be dead. I think it’s very likely that if I wasn’t wearing a helmet, that I would have been either killed or critical,” Higby said.

Kruse, host of the unDivided video podcast, told The Center Square she had only been at the Tukwila protest scene for 30 seconds when she was attacked.

“I didn’t even get a chance to cover it. Within 30 seconds of walking up, I heard a couple of people shout, ‘that’s Brandi Kruse.’ And then they started to form around me, and initially it was they were blocking my camera with their umbrellas because they don’t want you to document their criminal conduct. And then they started spraying water at me, and then they got a little more aggressive,” Kruse said. “They were dumping full bottles of water and hurling bottles of water and it hit me a couple of times from behind.”

Kruse said she tried to walk away but was followed with protesters pushing signs into her face and continuing to hurl things at her.

“But the thing is they won’t let you walk away, and they don’t want you to walk away. I’m just sort of looking over my shoulder and then I see this individual coming from behind me to the right who had something that they were starting to spray. And you know, your mind goes in a million different places, and you don’t know what it could be, but as soon as it hit my eyes and I got the smell, I knew it was some sort of bug spray because it had that distinctive smell. We found out later it was this hornet and wasp killer that can spray like up to 20 feet,” said Kruse, who posted to social media video of the attack and security escort pouring water into her eyes to flush out the spray which she shared burned painfully for days.

In the assault on Higby, police say they know who the assailant is but have yet to make an arrest. Higby said he’s “10 thousand percent sure” it’s the same person who threatened him weeks before.

Higby told The Center Square he’s been informed that despite the seriousness of the assault, prosecutors may not be inclined to pursue charges.

Seattle Police responded to an email from The Center Square on Friday requesting details on the case and received the following response: “This case is an open and active investigation assigned to SPD’s homicide & Assault Unit. SPD policy prevents me from releasing suspect details or ‘leads,’” wrote Eric Munoz, detective in SPD media and public affairs.

Seattle Police Guild President Mike Solantold The Center Square in a Friday interview that he was skeptical as to whether prosecutors would pursue charges, despite the serious nature of the attack on Higby. He also condemned the lack of coverage in the mainstream media of the assaults on journalists.

“I think the bigger conversation here is why isn’t corporate media drawing attention to this political violence as they’re watching journalists get assaulted and it doesn’t appear to be covered by corporate media at all. My question is why, and the fact that that’s not happening is a major problem with what’s unfolding in our nation,” said Solan.

Kruse said she was also disappointed that members of the mainstream media have ignored the attack.

“I was getting text messages from former colleagues in television news in Seattle asking if I was OK, saying they saw the video, but then never reporting on it. So it’s not as if they’re oblivious…..if these were the proud boys, or if these were right-wing extremists and they assaulted journalists, there’s no way that it wouldn’t be covered,” said Kruse.

Kruse said she’s been in contact with officials in the Trump administration who are paying attention to the case, but has also filed a police report with Tukwila PD.

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conflict

Victor Davis Hanson Makes a Disturbing Prediction About What Happens If Iran Survives

Published on June 20, 2025

By

Amidst rough seas, you need a steady sailor.

Historian and classicist Victor Davis Hanson just delivered a masterful breakdown of the Iran conflict with clarity few can match.

Not just what’s happening, but what’s coming next.

“I think we’re going to see things that we haven’t seen in our lifetime in the Middle East,” he said.

This could go one of two ways, neither is small.

Victor Davis Hanson isn’t known for hyperbole. So when he opens with a warning like this, people pay attention:

“We are at an historic time in the Middle East,” he said.

“Never in our lifetimes have we been closer to a complete revolutionary fervor that gives promise of normalcy for the Middle East. And never have we been in more danger of seeing the entire region blow up.”

The paradox is striking.

Peace may be closer than ever, but so is total collapse.

And at the center of it all is the unfolding conflict between Iran and Israel, which Hanson called “surreal.”

Reflecting on the rapid collapse of Iran’s regional dominance, Hanson admitted that even a few years ago, this moment would have been unthinkable.

“If we had this conversation five years ago,” he said, “and I said to you, the Iranian nation that is huge compared to Israel, ten times the population, the Iranian nation has lost all control of the Houthi terrorists, and they are themselves neutered…”

He pointed to a chain reaction across the region: Iran’s proxy forces in Gaza and the West Bank have been neutralized. Hezbollah, once a feared military force, is now dormant.

“They’re gone as a Hamas, as a fighting force. The formidable, the terrifying Hezbollah cadres, they’re inert.”

The chaos in Syria, once a stronghold of Iranian influence, now seems to be working against Tehran.

“There is no more Syria, the Assad dynasty, the pro-Iranian, the Syria. It’s in chaos. But whatever the chaos is, seems to be anti-Iranian.”

The collapse is strategic, not just symbolic. Hanson noted that the so-called “Shia crescent” connecting Tehran to the Mediterranean is no longer intact.

“Lebanon is free of Iranian influence. So is Syria. Gaza, a de facto, will be.”

Even Russia, once a key ally, is no longer a player in the region.

“It’s tied down in Ukraine,” he said.

“Iran itself, the formidable powerhouse of the Middle East that evoked terror all over, has no defenses.”

Over the course of just five days, Israel has launched a targeted military campaign to dismantle Iran’s strategic infrastructure.

According to Hanson, the damage has been sweeping.

“They have dismantled all of the Iranian missile defenses. They have dismantled the terrorist hierarchy. They have dismantled the people who are responsible for the nuclear program.”

And yet, there’s risk.

“The Iranians have sent over 400 ballistic missiles and drones into Israel,” he said, “and 90 percent are stop. But that 10 percent gets through.”

Which brings us to the turning point.

All of this only matters if it ends with Iran’s theocracy on the brink of collapse.

If it doesn’t, everything that’s been gained could be erased.

“All of this chaos and all of this war will be for not if Iran’s theocracy emerges intact from this war.”

Even more dangerous, he added, would be a scenario in which the country’s nuclear infrastructure survives or can be quickly rebuilt.

That possibility has triggered one of the most urgent strategic questions on the table: Can Israel finish the job?

Or will it need help from the United States to strike Iran’s deeply buried nuclear facilities?

This is where things get complicated.

Under the “America First” foreign policy doctrine, Trump has been clear: no more forever wars, no more ground troops in the Middle East.

But Hanson argued that Trump’s actions tell a deeper story.

“I’m not an isolationist, I’m a Jacksonian,” he said, echoing what Trump might say.

“You should have known that when I took out Soleimani… when I took out Baghdadi… when I took out the Wagner Group.”

The message? Trump doesn’t go looking for wars. But when deterrence is at stake, he’s not afraid to act decisively.

Still, Hanson posed a chilling question: what if the Iranian regime survives?

“If this war should end with the Iranian regime intact and the elements of its nuclear program recoverable,” he warned, “then in some ways it will be all for naught.”

Despite Iran’s military losses, its media destruction and its isolated position, surviving such a coordinated strike could give it something even more powerful than weapons: perceived invincibility.

“It will be more like, oh my gosh, Iran survived everything that Israel, and by association the United States, threw at it.”

“It’s indestructible.”

And that, Hanson suggested, would be the real danger.

Not just a return to the status quo, but a shift in perception that emboldens the regime and reshapes the balance of power across the region.

Now the question hanging over the entire conflict is this: does the world play it safe and allow remnants of Iran’s nuclear infrastructure to survive?

Or risk a final strike that could eliminate the threat for good, but possibly trigger even greater instability?

“Do you risk more danger by taking out and eliminating the nuclear threat for good,” Hanson asked, “and by association, you humiliate the theocracy to the point it can be overthrown?”

That’s the gamble.

He didn’t shy away from his own discomfort with war.

“I don’t like forever wars,” he added.

“I don’t like preemptive wars. I do not like the United States intervening anywhere in that godforsaken area. But if the war ends with the regime intact and a recoverable nuclear program, it won’t just be back to square one. It will be a disaster.”

That’s when he dropped a bombshell prediction of the future in the area after the dust settles in the desert.

Whether this ends in collapse or resurgence, Hanson believes the next phase of the war could reshape the entire region and the world’s understanding of power in the Middle East.

“So we’ll see what happens,” he said.

“And hold on, everybody. I think we’re going to see things that we haven’t seen in our lifetime in the Middle East. And it could turn out very bad.”

“But it could also turn out to be quite revolutionary and remake the map of the entire region.”

This story was made possible with the help of Overton —I couldn’t have done it without him.

If you’d like to support his growing network, consider subscribing for the month or the year. Your support helps him expand his team and cover more stories like this one.

We both truly appreciate your support!

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