In the Vancouver Sun, Friday, February 13, 2004, an article in the business section titled ⤽Tax evaders have good reason to squirm,� reads on page G3 really struck accord with me. Not because of the criminal elements, nor the cheesy aspects of Canadian and American conspiracy charges in our penal codes, but rather the definition of what tax evasion is and its relationship to off shore Banking. It is how people who read these articles give criticisms on these very aspects and how they fear the very notion of corruption and far off lands. The notion that anything outside of Canada, our honest institutions like our Banks are pure good and �”they are bad. How striking that this article plays with every notion that Banking outside of our borders is bad and evil and yet, it never tackles the very core of what is relevant or legal?

Mr. Jerome Schnieder, is, and has admitted to charges of ⤽conspiracy to defraud the U.S. Internal Revenue Services and to cooperate in the IRS’s continuing investigation into U.S. Taxpayers who used his his services to evade taxes.� Mr. Schnieder now lives in Vancouver and pleaded guilty back in January and will be sentenced on September 10 of this year. His sentence will range from 5 to 0 years in jail and fines ranging from $250,000.00 to a few thousand, however, with cooperation, his sentence will be a maximum of 18 to 24 months and a fine of $100,000.00 US restitution: the article says. It is his clients who now should be running!

He has authored books and has done the lecture circuit selling his wears, promoting the virtues of making money like the rich corporations do, however, even he states that the chances of getting caught from the IRS and in Canada, the CCRA, ⤽are next to nothing.� The very reason of living of your investment is so attractive that who would not pass such a golden opportunity up like this. Perhaps a few fact about the Tax system and it’s relationship to off shore Banking should be in order here?

Revenue Canada, like the U.S., has made it’s laws very demanding and omni directional. Any citizen under its jurisdiction is subject to this measure, that is, any income, whether in or outside this jurisdiction is subject to these tax laws. Therefor, any money(s) made as profit, becoming your income is subject to being taxed. Money that you make abroad, in the form of wages or earnings is also taxed if you are a Canadian citizen. Please note how I worded these two phrases.

So, the term investment and Banking need to be addressed. An investment is taking money out of your pocket and giving it to someone who will use it, and in return give you a percentage back to that privilege. Banking is taking you hard earned cash and allowing a Bank to hold it, giving them the privilege to use it as part of their cash reserves, and in return, they give you a percentage for using it �”albeit a teenie, weenie percentage. So why the tax in these two situations? Simple, because they are income that is returned to you after the investment. Another words if you had left it their, then you would have no income.

So, why be up front with the CCRA? Simple, they can arrest you, and take all your money away that you have in Canada. The solution, what every investment broker fears the most, –keeping that money out of Canada for good.

Declare it, but never profit from it. You buy something with it, but never sell it. Only when your ready to leave and start your retirement do you capitalized on your investments, of course your not living in Canada by then. I guess the simplest way of thinking about it is, pretend that you are giving your poor old mother back in Russia some money to help the family out. The size and amount of those transactions are critical. If small and not frequent, then very little will become of it. If you are buying to invest, tell the CCRA, keep it on the books, but never profit from it until you are ready to retire!

CopyWrite Thomasso2004

2 Thoughts on “Oh… TAX SCAMS -TOM’S TAKE

  1. what has happen with his court date of Sept 10 / 04

  2. Hi Steve, very good question. I have not being following this event becuase I have being so busy. I can give you a couple of links if that may helps you? He did enter a plea of guilty, therefore he only goes to court for his sentencing. I don’t know what happen if the court date was changed or is still on and has not being made available. These links may help you?

    Thanks for you comment Steve.


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