I almost fell off of my chair when I read the news article called the Panama Papers from CBCnews on their website. First, when they said that there are legitimate reasons for having an off shore account like and second, just how prolific these off accounts are among the rich and famous. But that is not all. When I read that part in the news article that our very own Canada Revenue Agency (CRA) will not invest time and efforts to look into the Canadians on the list (who could be possible tax cheats) on the Panama Papers, this made me angry.
So, I am a big multi billion dollar corporation, and I ask my lawyers, “hey, how do we cut the amount of taxes we are paying in this county,” they would say, open an off shore account and there you can hid your money from the tax man. How could this be legal? I certainly see the benefit from the corporation’s point of view, and I just cannot wrap my head around how our government can legitimize this whole secrecy part about hiding money like this. Sure, there must be some legal reasons for doing this, (although I cannot see them at the moment) but in this day and age, when the number of people who have billions in their bank account is growing, and the number of countries and people who are corrupt grow, I can only see dodging and secrecy as the heaven against high tax jurisdictions and law enforcement agencies. So it would make sense to me that anyone who has lots of money (or property) would want to “hide” it, especially from government’s tax and legal departments.
I am just dumbfounded that in my own country (Canada) having an offshore account is perfectly acceptable; however, I did read my my tax return, and it asks if you have property and money outside of Canada, so I guess if you are honest, you would tell them. But, the CRA seems to not have any troubles if you decide to open an offshore account, and you kept that to yourself, they appear to have no interest in looking for it. So, if you are lucky enough to not have your offshore company’s records leaked to the world, then your money, assets and property (including valuable art) are perfectly safe in (from) Canada.
I say, Canada at least, should treat this like the “War on Drugs.” Liken it to drugs, say Cocaine for example. Cocaine is a highly additive drug, and it so happens that it is illegal to have possession of it, and to us it, other than for medial reasons by a real doctor. So, lets treat offshore banking the same way. Since greed for money seems to be associated with illegal activities, and common links can be drawn between the drug user and offshore accounts, why not set up laws and policing agencies to combat this scourge. If it is discovered that a person, or legal fiction, has an offshore account, then an automatic investigation should start. Heck, why not make it so that all money transactions have to go through policing body for some sort–say the CRA. in other words, if a Bank, like the RBC tells one of its customers that they should open an offshore account, then the first thing that must take place is a request by the CRA to grant the RBC to open this offshore account, while in that process, a copy of money and items must be registered.
Yes, I think this would fly like a lead balloon. Even in Canada, this would go too far. Yes, I would admit, if I could hid my money, I probably would. The best I could do is bury my cash, (LOL) if I had any to spare.