Tax Gap Who's going to fix this? Trudeau or Harper?

[step_one]

The Canadian government refuses to make an estimate of the tax gap in Canada.

“Our own estimates would lead us to conclude Canada is losing at least 7.8 billion dollars a year. And probably more like ten or twenty billion,” Dennis Howlett, the executive director of Canadians for Tax Fairness, an Ottawa-based NGO, told 16×9. “That’s revenue lost to both federal and provincial governments.”

However, as 16×9 reveals in its story, Canadian companies can lower their tax burden quite legally. For example, if you move your factories or subsidiaries overseas to a low-tax haven, you can deduct the profits you make overseas from your Canadian tax bill. The rationale is you are being taxed in the foreign jurisdiction. Yet this is an incentive to move your operations to low-tax havens. For example, the Toronto Dominion bank made $6.5 billion in profit last year. But, because of overseas profits, it cut its tax rate to 15 per cent – almost half the Canadian tax rate. Moreover, in 2009, when the corporate tax rate was almost 32 per cent, TD paid only 7.6 per cent tax in Canada.

In the case of Montreal-based clothes manufacturer Gildan Activewear, which moved its last factory out of Canada in 2007, it has made enormous profits in recent years –$224 million in 2011 alone – but has not paid one cent of corporate taxes in the past four years. That’s because it deducts its overseas profits from its Canadian tax bill.

[tgm929]

According to people that actually know, your information is completely wrong.

[Captain Awesome]

So, what is a tax gap, exactly?

[step_one]

According to people that actually know, your information is completely wrong.

Who are the people who actually know?
I watch this on Global News June 6/2014
The TV show "16x9" called "Are Canadians Ccompanies exploiting a loophole in our tax code?"

[maryjane48]

According to people that actually know, your information is completely wrong.

lol is that what peter mckay told you?

[alfred2]

You can not argue with stupid they will drag you down to their level and beat you with experience. This is for people who have no idea other then to run the government down. When you you make a stupid statement have proof of it or stop acting like a fool .

[hobbyguy]

This issue has been around for a long time. Harper's actual response was to cut the number of Revenue Canada staff that could audit the nonsense. http://www.huffingtonpost.ca/2014/03/15/corporate-tax-avoidance-canada_n_4969404.html

We are not alone in this problem. Think about Apple hiding money in Ireland.

But nobody, nobody, in any of the affected countries has done anything about it. Except yell at Ireland. And have committee meetings in the US that everybody knows are meaningless because the congress won't pass changes - only gas...

Trudeau is more likely to make some attempts to recover some of the money - but don't hold your breath. The whole maze of international trade agreements, financial protection acts etc., makes it very tough.

[Captain Awesome]

We are not alone in this problem. Think about Apple hiding money in Ireland.

Most of these things are being passed around like urban myths by people who don't know what they're talking about. Of course media plays its role by sensationalizing everything too.

I remember how Baggo (or Surplus Elect, or whatever name he is using now) claimed how Apple made billions of dollars and didn't pay a cent in taxes. Until I showed him an actual tax form filled by Apple with billions of dollars paid in taxes. He didn't even apologize for BS-ing everybody, but that's not surprising.

[step_one]

I give up, I thought I was sharing something important.
You all know better than i do, or if you do know someone that knows better than I do, you can't say a name.
You wonder why Canadians are f---ed!
Take look in the mirror

[step_one]

According to people that actually know, your information is completely wrong.

WHO ARE THE PEOPLE THAT ACTUALLY KNOW????? ...... WHO ARE THEY??, NAME SOME NAMES.

[tgm929]

lol is that what peter mckay told you?

lol no he didn't. lol It's called knowledge. lol you should try it sometime. lol

[rookie314]

Tudeau will fix it all! And if he doesn't he's just gonna make it so you all can just light a big fatty, get stoned out of your mind and then you just won't care. Unless he raises taxes on Dorittos.

[Daspoot]

I give up, I thought I was sharing something important.
You all know better than i do, or if you do know someone that knows better than I do, you can't say a name.
You wonder why Canadians are f---ed!
Take look in the mirror

I looked in the mirror, I didn't look f---ed to me. What does f---ed look like? sort of satisfied and hungry? Hey maybe I am f---ed.

[The Rooster]

The Canadian government refuses to make an estimate of the tax gap in Canada.

“Our own estimates would lead us to conclude Canada is losing at least 7.8 billion dollars a year. And probably more like ten or twenty billion,” Dennis Howlett, the executive director of Canadians for Tax Fairness, an Ottawa-based NGO, told 16×9. “That’s revenue lost to both federal and provincial governments.”

However, as 16×9 reveals in its story, Canadian companies can lower their tax burden quite legally. For example, if you move your factories or subsidiaries overseas to a low-tax haven, you can deduct the profits you make overseas from your Canadian tax bill. The rationale is you are being taxed in the foreign jurisdiction. Yet this is an incentive to move your operations to low-tax havens. For example, the Toronto Dominion bank made $6.5 billion in profit last year. But, because of overseas profits, it cut its tax rate to 15 per cent – almost half the Canadian tax rate. Moreover, in 2009, when the corporate tax rate was almost 32 per cent, TD paid only 7.6 per cent tax in Canada.

In the case of Montreal-based clothes manufacturer Gildan Activewear, which moved its last factory out of Canada in 2007, it has made enormous profits in recent years –$224 million in 2011 alone – but has not paid one cent of corporate taxes in the past four years. That’s because it deducts its overseas profits from its Canadian tax bill.

,,,,,,,,,l,,,,,,,,,,,,,,,,,,,,

Harper has already put money backin my pocket by reducing the GST , and increasing the person income tax exemption amount . Tru-Dum wants to raise the GST backup , bring in a new Carbon Tax , which only effects the mid and lower incomes , and he wants to dramatically reduce the dollar to the 60 cent range to help Quebec and Onfarios manufacturing sectors . A half dollar will mean a rise in gasoline prices , food , housing costs and everything else .

If you don't like it now , don't vote Liberal because it will be a lot worse

[wanderingman]

One way to equalize the tax gap is make lower income earners pay a more fair share .Seniors get huge non taxable income break before any taxes start(around the first 14k is non taxable)then the next 20 or so is very low
another way to be fair is tax income from dividends from public companys.U can earn around $45000 in non taxable distributions from public companys. SO lets say for example you have made enough money to buy $1,000,000 in royal bank stock and it pays around 4.6% that's $46000 in income that is NOT taxable,lets add your CPP at 700PM and OAS at 455 PM
that's another 14000.00 that wont be taxable because of the over 60ish exemptions
so in fact a person(senior)can in theory make $60,000.00 per year and pay no income tax
any person can earn the 46K from public distributions and pay ZERO TAX on the income
The big problem in Canada is the have notters(Indians and welfare bums etc) use 80% of our resources that the upper income people pay 90% of the bill