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Taxpayers DO have the right to remain silent

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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

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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Bruce Dowbiggin

Hyperbole Is Dead. Big Brother Killed Him

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Antietam, Maryland: On Sept 17, 1862, the combined forces of the Union Army (under George McLellan) and the Confederate army (under Robert E. Lee) met on sleepy farmland west of Washington. When the ten hours of vicious fighting was done, there was an appalling 22,717 casualties. It still stands as the most lethal day in American military history.

History records it as a draw, although the Union army stopped an attack by Lee’s 30,000-man army on the U.S. capital. Walking the rolling lands alongside the Potomac River with Matthew Brady’s grisly photographic record in mind a modern visitor would ask how did it come to this slaughter? What issue was so divisive that it led to this?

The issue as seen today was slavery, although the Confederates would say it was states’ rights. From the day the ink dried on the Declaration of Independence the issue of slavery pointed to that day in 1862. Attempts to reconcile the issue of the South’s dependence on slavery produced failed compromises (The Great Compromise of 1787) and the creation of the Republican Party.

It all failed. The reason? For 75 years, the two sides divorced themselves from one another, demonizing and distancing in escalating rhetoric and political corruption. With the election of Abraham Lincoln, an abolition-sympathetic Republican, war was on. Before it ended in 1865 there were 828,000 Union casualties while the South experienced 864,000 casualties. There were almost a million civilians and free slaves left dead as well.

This ominous historical note is relevant today as the two sides in the American and Canadian debate slide inexorably toward a schism. With a presidential election this November and a Canadian federal election likely next year, the sides have given up on policy. Oh, they still make a show of plans for the economy. Or housing. Or the military.

But the real battlefield is the war on information. Who will be censored? Who will write history? As a picture of intolerance it has reached DefCon 4. No better example exists than the hissy-fit from employees of the NBC News department at the attempt to hire Rona McDaniel, former RNC chairwoman as an employee. The sanctimonious stars of NBC and MSNBC news— several of them Obama-era employees or Democratic fundraisers— launched a collective insurrection against the hire, saying McDaniel was a purveyor of lies and disinformation in the service of Beelzebub aka Donald Trump.

Never mind that Racial Maddow and Joyless Reid and Chuckles Todd spent the past eight years carrying water for Hillary Clinton’s demented RussiaGate and Hunter Biden’s laptop hoax. Former Republican Joe Scarborough spoke of the “sacred trust” with viewers as grounds for forcing NBC to fire McDaniel after about 48 hours.

No one is now allowed to pollute the minds of Morning Joe viewers. A narrative is a narrative, and no niece of Mitt Romney is getting in the way of that carefully crafted line as we head to November. Trump World is a cesspool of Nazis and enemies of democracy, and they’re going to play that card.

Viewers of last Sunday’s 60 Minutes saw a more subtle version of demonizing the other. In the fusty Tiffany Network style they introduced  Kate Starbird, a professor at the University of Washington and a leader of a “misinformation research group” created ahead of the 2020 election. Who gave her that title is left to the listeners’ imagination.

Naturally Ms. Starbird did a hit job on Jim Jordan and the GOP. Naturally, 60 Minutes neglected to mention Starboard is a longtime Democrat donor and foot soldier in the 2024 Biden Army. Naturally, the divide was widened further. The effect was achieved. Anyone voting Trump is a dedicated Nazi.

It will only ramp up from here because, with no successes to brag about and Biden’s polls plunging, fear is king. (Adding Robert F. Kennedy Jr. to siphon left-wing votes is another threat.) They know Biden is a millstone in efforts to eradicate Trump. And 40 percent of the U.S. population thinks this is reality, much the way the opposing sides at Antietam saw the devil across the Bloody Ditch and Antietam Bridge.

The federal Liberals in Canada have been paying attention. With polls that even Biden would faint over, Justin Trudeau is ramping up the disinformation dodge with the same fervour as the MSNBC fainting goats. Skippy has added a little Russian sauce to his equation, claiming that Putin has Conservative leader Pierre Polievre in his control, manipulating the public to abandon Ukraine.

How Ukraine figures in Canada’s national interest isn’t explained, but if Canadians elect the Tories next year Western society will collapse, pace Trudeau. The PM’s lightweight posse is jumping in, too. Deputy PM Chrystia Freeland, who applauds Nazis in Parliament, is predicting a bleak future for the country unless the evil-thinkers to the Right are brought under control.

Hence Bill-63, the Liberal/ NDP diktat to criminalize WrongThink on the internet and what’s left on the traditional media. Not only in the run-up to what may be the Waterloo for Trudeau and NDP fashion model Jagmeet Singh. Freeland’s bill gives faceless bureaucrats the right to criminalize future behaviour as well. Holy Karnak!

There will be many attempts to pretend that permanently silencing the opponent is not the key issue of 2024-2025. Don’t believe them. People who just a few years ago laughed at the images of Mao’s purges in the Cultural Revolution now have succumbed to a new Little Red Book. They praise their heroes Obama and Clinton and demand jail for Trump. Hyperbole is dead. Big Brother killed him.

circa 1970: Chinese Red Guards reading from the little red book of Thoughts of Chairman Mao before starting their day. (Photo by Keystone/Getty Images)

Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster  A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, he’s a regular contributor to Sirius XM Canada Talks Ch. 167. Inexact Science: The Six Most Compelling Draft Years In NHL History, his new book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via brucedowbigginbooks.ca.

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Frontier Centre for Public Policy

Trudeau ‘finished what his father started’ driving Canada into failing freefall

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From the Frontier Centre for Public Policy

By Linda Slobodian

In 2015 Prime Minister Justin Trudeau scorned Canada — a country that afforded him so much, yet to which he had contributed nothing of notable significance. His disdain for those on whose backs Canada was built was clear. History and European national origins had to be blotted out.

Canada was a “post-national” nation with “no core identity,” he arrogantly told the New York Times. The reckless socialist ideology he spat out was an omen of the division, fear and attack on so-called privileged (white) Canadians that hit like a storm. It hovers over us like a choking toxic cloud.

If Trudeau’s vision was a Canada “completely splintered,” with Quebec a nation unto itself “separate and distinct,” English-speaking provinces “fractured into oblivion” and breaking up our “common culture” — then mission accomplished.

“He’s finished what his father started,” said Lt. Col. Dave Redman (ret’d), who served 27 years with the Canadian Armed Forces and headed Alberta’s Emergency Management Agency.

The Trudeau concept of a post-national state is “dangerous and misleading.”

“It implies that democratically elected national governments are no longer relevant.”

Redman explained Canada’s “shifting socio-political landscape” with powerful clarity in Canada 2024: A Confident Resilient Nation or a Fearful Fracture Country? in the Frontier Centre for Public Policy.

Canadians know something has gone terribly wrong beyond mounting financial struggles and trampled rights. Our nation’s rife with “apologies and internal divisions,” said Redman.

“Confidence has been turned into fear and shame. Canada has become irrelevant on the world stage.”

Canada’s in a “failing” freefall.

“Why will no one invest economically in Canada? Why are people leaving Canada? Why are people not believing that Canada has a future? Why are our allies ignoring us and holding us in disdain? Because we are a threat to their national security because China can get to them through us.”

Canada’s at a “critical juncture.” Until politicians and Canadians unite with common values and defended borders —necessary for a successful nation — Canada will be “stumbling from one crisis to another.”

Until Canadians hold them to account, politicians will fixate on minor “wedge” issues — such as diversity, equity and inclusion (DEI) — to divert attention from critical national concerns they want us to ignore.

Convincing people to feel bad about themselves makes it easier to manipulate guilt and usher in destructive, ideological programs with obscene price tags.

Canada must foster national pride, prioritize national interests and protect national security to secure its future, said Redman.

“A nation is successful when a group of people live in one country with defended borders and share common values, even if they vary in cultures and languages.”

Redman’s six-point framework for national interests includes unity, national security, good governance, protection of rights and freedoms, economic prosperity and growth and personal and community well-being. He offers strategies on how to achieve these critical objectives.

“I believe the current sitting government truly does believe that the World Economic Forum’s concepts and ideals of post-national states is what Canada should be and they have started it.”

“I believe the current government of Canada is intentionally walking each of those six national interests away from Canada in a way that will allow Canada to become part of a broken world.”

It’s up to Canadians to decide what direction we head in.

“The reason I wrote this paper was to make people think about our country in a 20-to-25-year vision. And not let the current government which loves to use divisive, tactical issues to destroy the larger picture conversation. And in doing so, destroy our economy, destroy our unity, destroy our national security by focussing on tactical issues,” said Redman.

A vision for Canada involves citizens who are optimistic about the future, have self-respect to follow through on their ideas, and courage to stand up for their culture and ideals, he said.

Trudeau and his band of self-serving renegades unleashed an ideological curse on Canada.

But we let them.

Then COVID-19 demonstrated how quickly rights and freedoms “can be trampled on, eviscerated and dismissed.”

For a glorious moment in time Freedom Convoy truckers rejuvenated Canadian pride, united Canadians and emboldened us to fight for freedom. Peaceful protesters who waved the Canadian flag were punished.

Yet the silence is deafening as people who despise Canada’s core identity — yes, Trudeau, we have one — hijack our nation and our children’s future.

Redman points to “diaspora marching routinely in the streets of our cities supporting illegal terrorist organizations demanding the death of both citizens here and abroad.”

They wave flags but never the Maple Leaf. They support other countries “but do not march for Canada.”

“Unity is the core value for a country. A cultural unity is based on common shared ethics, values and beliefs. People wishing to become citizens of a country must understand these principles of belief and join the country because they wish for the same to be the foundation of their daily lives.”

“Many who come to a country, not wishing to join the cultural unity of that country, are enemies, intentional or otherwise, who work to erode or destroy this unity.”

Immigration is part of national security.

“You’re pouring people into our country who do not share our ethics and values. And you’re doing it intentionally. That will destroy unity and while it’s destroying unity it will destroy economic prosperity and growth.”

“Our police and courts take no action or in fact support these illegal acts.”

“Our current federal government, many of our provincial territorial governments and our municipal governments stand silently by, or in some cases support the destruction of our values, laws and national interests.”
Redman said the question is, what do Canadians want Canada to be? Will we stand up and root out infectious ideology? Is it too late?

“My paper is about how to overcome what’s happened. It’s happened, we can’t change that. But it’s how to get politicians and Canadians to change how they think about our country. And to have a process to put in place, a vision for our country and have elected officials explain what they see the vision to be. Canadians can make a choice between visions.”

Citizens, academia, public and private sector organizations, unions, religious and non-religious groups need to get involved to break down national interests into “clear and attainable objectives.”

Politicians must explain what unity and democracy means to them. That’s not happening.

Many Canadians are pinning hopes on Conservative Leader Pierre Poilievre forming the next federal government.

“My line to Poilievre is I understand his tactical four bullet plan you know that inflation’s up, the cost of living’s up, that housing’s bad and people need more money in their pocket.”

“I get it. He’s beating that drum over and over. But we’ve got a year before the election, he needs to start talking about his vision for Canada.”

Canada was once internationally respected, trusted and consulted. Now we are pitied by shocked outsiders witnessing woke ideology and crushed free speech forced upon us.

“We’ve been taught to be ashamed of our history instead of proud of it, or even to learn from it.”

“We have completely shattered democratic institutions. Our election system is in question. Our legislatures are in turmoil, our courts, our schools, our medical system. The mainstream media is completely partisan. Our economy is broken. People can’t meet bills at the end of the month and we’re ignored and shunned by our allies.”

Redman addressed good governance, offering guidelines on how to “strengthen and preserve the democratic way of life in Canada.”

“Good governance to me means defence of democracy, where in other countries it can mean absolute control of a totalitarian government.”

Redman’s suggestions to stop Canada from being completely “shattered” include a 100% immigration policy review; halting funding to universities that are “domestic threats” and removing Marxists professors; establishing a monitored election process; and ending government-funded media.

Agencies that counter external threats must be “equipped to work individually and cooperatively, with each other and our allies.”

Stop foreign aid that counters our interests and national security.

“While Canadians are challenged to put food on the table and to have a house, they watch as the federal government sends hundreds of millions of dollars to international organizations and specific countries that do not share our democratic aims or our national interests.”

There must be “a wall of people hitting” politicians telling them to listen or face defeat.

“In 25 years will Canada be a democracy? Or will it become a country led by an authoritarian government that uses fear and threats to remove imaginary risks from the daily lives of Canadians who have lost their self-respect and courage?”

Look at what eight years did.

First published here.

Linda Slobodian is the Senior Manitoba Columnist for the Western Standard based out of Winnipeg. She has been an investigative columnist for the Calgary Herald, Calgary Sun, Edmonton Sun, and Alberta Report.

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