End of the Natural Person in Canada
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End of the Natural Person in Canada
Looks like a few of our North American based pilots could be taking some time off work in the future.Former city dentist jailed 18 months for tax evasion
Michael Kane, Vancouver Sun
Published: Saturday, October 20, 2007
A former Vancouver dentist who argued that Ottawa has no power to levy taxes was sentenced Friday to 18 months in jail, one of the longest terms for tax evasion imposed in recent Canadian history.
Nelson resident Eva Sydel is appealing her conviction and has been granted bail.
Sydel failed to report more than $996,000 in professional income earned between 1998 and 2003 by independently contracting her dental services to other practicing dentists.
In her defence, she argued that she is a "natural person" -- rather than a taxpayer -- and is not bound by the Income Tax Act to file income tax returns, nor pay any income tax.
The prosecution cited eight previous Canadian cases where the courts have rejected the "natural person" defence promoted by tax protesters and self-described "de-taxers," who argue that tax laws are not legitimate.
During sentencing at Vancouver Provincial Court Friday, Judge P. R. Meyers stated: "It seems to me that this type of crime and this type of individual, as Dr. Sydel is, is precisely the type of crime and individual that society must, when they look at it, say, 'How can somebody go for so many years, earning so much money, not paying a dime in taxes, be it through the process of delay and then bankruptcy, and yet use everything that Canada has to offer by way of free facilities?'
"People have to look at that and say that the only appropriate punishment for somebody like this is a jail sentence."
Sydel was also fined $244,446 as a result of her conviction on July 11, 2006, on four counts of making false or deceptive statements on her personal income tax returns, and five counts of wilfully evading the payment of federal income taxes. The fine represents about 96 per cent of the federal tax evaded.
In his reasons for judgment, Meyers wrote: "It is my finding that the accused's mistake was the direct result of her own wilful blindness. The accused's mistake was not a result of the 'notoriously complex' nature of the Income Tax Act, but rather, from a very basic mistaken belief about one of the most basic, straightforward and uncomplicated features of the Income Tax Act -- that human beings are 'persons' and persons who earn income have to pay income taxes."
He added that Sydel, whom he described as an intelligent and well-educated 39-year-old woman brought up in Austria, Germany and Canada, failed to use the procedures available to her under the Income Tax Act to test and determine the validity of her beliefs.
"Instead of using these procedures, she decided to simply refuse to pay the taxes, be criminally charged, and then raise the defence of mistake of law or mistake of mixed fact and law at her criminal trial. She deliberately chose her route."
Doug Christie, Sydel's defence lawyer, said "the issue of a mistake in law constituting a possible defence" is coming up again in the Ontario Court of Appeal, where another accused has twice been acquitted of tax evasion.
"If you can make an honest mistake in law, then the element of intent on evasion may be in doubt," he said in an interview Friday.
He also said there are "important considerations of the propriety of a jail term for a first offence. I think it would be appropriate to take a different view than was taken by the trial judge."
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Caught!
I recall only a few years ago speaking to one of the "natural people" on the street. When I suggested it was perhaps less than just that they live in Canada, use all of the services but pay no tax I was told I was a fool to be paying. Hope that individual enjoys his stay in government provided quarters. Oh yes my tax dollars will help defer the cost of that visit for you as well.
HAHAHAAA
On another note it is kind of ironic that a person can kill someone and get off with a year but man if you screw the government out of their money, watch out!
HAHAHAAA
On another note it is kind of ironic that a person can kill someone and get off with a year but man if you screw the government out of their money, watch out!
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use all of the services but pay no tax
I don't know about Canada, but in the states, the services you use on a daily basis are paid for from other funds, not your income tax. For example, the schools are paid by property taxes, the roads are paid by tolls and fuel taxes, and so on. The government has so much money from some of these extra taxes that they use it for things they are not supposed to. Why is the infrastructure, specifically the airports, in the US so lacking and antiquated? All the taxes that airlines pay on fuel (Well, the airlines don't pay the tax, they just pass it on to you) goes to other things like reducing the national debt (At least it did during Clinton).
So I don't blame these guys for not wanting to pay taxes. It chaps my ass that I have to give my money to the US government too. The only difference is that I recognize who I'm dealing with. I look at it like paying a bully to leave me alone. If I had the choice I would stop paying them, but I think the consequences of not paying are worth a few dollars to avoid all together. I just do like most educated people and try and recover back as much of the money they stole by diligently and meticulously filing my income tax return.
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She is not in jail yet and there is an appeals process. Will Ontario judgments have any bearing in BC as it seems some cases were won in Ontario.
Eighteen months will be out in 2 and declare bankruptcy and keep the money or she can hop a plane back to Austria never to return.
Eighteen months will be out in 2 and declare bankruptcy and keep the money or she can hop a plane back to Austria never to return.
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Income Tax
Squawk7700
Good point on US taxes.....in fact US income tax was first levied by A.Lincoln to fund the civil war programmes (and subsequently repealed). There is a strong case for questioning the constitutionallity of Income Tax but like you said its easier to pay the big bully than try and fight alone and what admistration is gonna execute its golden egg laying goose at the alter of "legality". So many codes and loopholes (sorry credits/subsidies/rejuvination packages) that leaves the high end middle classes funding the biggest chunk of salary taxes. For our profession the codes are hopelessly out dated I think. Consider most of our income is earned off shore as we are out of the country (be it US or Canada) 85 to 90% of the time.
But "Natural Person"!....Afraid that old idea went south with the Calvalry and steam driven automobiles. Nah look for income tax rates around 28 to 35% in 15 to 20 years to fund the huge debt..better go get those Roth IRA's or off shore pensions set up...
In a strange way I kinda admire the lady who is off to prison. She did indeed stand up to the bully, albeit for personal gain. But likely she would only spend the money anyway on "things" which as you said are taxed......urghhh guess I'm rambling on...to hell with it I'll as long as Honkers doesn't get any of my money guess Uncle Sam will have to be paid!!!
Good point on US taxes.....in fact US income tax was first levied by A.Lincoln to fund the civil war programmes (and subsequently repealed). There is a strong case for questioning the constitutionallity of Income Tax but like you said its easier to pay the big bully than try and fight alone and what admistration is gonna execute its golden egg laying goose at the alter of "legality". So many codes and loopholes (sorry credits/subsidies/rejuvination packages) that leaves the high end middle classes funding the biggest chunk of salary taxes. For our profession the codes are hopelessly out dated I think. Consider most of our income is earned off shore as we are out of the country (be it US or Canada) 85 to 90% of the time.
But "Natural Person"!....Afraid that old idea went south with the Calvalry and steam driven automobiles. Nah look for income tax rates around 28 to 35% in 15 to 20 years to fund the huge debt..better go get those Roth IRA's or off shore pensions set up...
In a strange way I kinda admire the lady who is off to prison. She did indeed stand up to the bully, albeit for personal gain. But likely she would only spend the money anyway on "things" which as you said are taxed......urghhh guess I'm rambling on...to hell with it I'll as long as Honkers doesn't get any of my money guess Uncle Sam will have to be paid!!!
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7700
As you live in the US you are unlikley to understand the Canadian Tax system.
You are right most of us don't like paying too much in taxes, but the roads don't get paved free of charge.
The point is the "natural person" scam made no sense at all, wether one hates paying taxes or not. Greed blinded these individuals to the reality of what they were claiming. It was only ever a matter of time. Now with interest and penalties they will pay much more than if they had just paid up in the first place. The justice system is lenient on many crimes, defrauding the Giant Beaver in Ottawa, or Uncle Sam in Washinton, is not one of them. To top it all these people paid some guy a good deal of money to set this up. Wonder how the weather is in the Caymans? bet he knows.
You are right most of us don't like paying too much in taxes, but the roads don't get paved free of charge.
The point is the "natural person" scam made no sense at all, wether one hates paying taxes or not. Greed blinded these individuals to the reality of what they were claiming. It was only ever a matter of time. Now with interest and penalties they will pay much more than if they had just paid up in the first place. The justice system is lenient on many crimes, defrauding the Giant Beaver in Ottawa, or Uncle Sam in Washinton, is not one of them. To top it all these people paid some guy a good deal of money to set this up. Wonder how the weather is in the Caymans? bet he knows.
