Canada’s tax system has become so complex and confusing, and revenue staff so unsympathetic, that a judge has awarded legal costs to an Ontario couple despite ruling against their case with the Canada Revenue Agency.
In the David-and-Goliath struggle between Ajax, Ont., retiree Robert Gangnon and his wife, Margaret, representing themselves on one side and the tax agency supported by the Department of Justice on the other, the little guys won even though, legally, they did not.
Mr. and Mrs. Gangnon, both 70, are described by Federal Court Justice Roger T. Hughes in his ruling last week as folk who “throughout their working lives have endeavoured to pay their taxes and arrange their tax affairs in such a way as to be honest and forthright.”
Judge Hughes then added: “Unfortunately, as it happens the complexity of our taxation system, the confusing forms and sometimes unhelpful officials at the Canada Revenue Agency, have all served to frustrate their attempts, done on their own, to do the right thing.”
The Gangnons waged a five-year court battle against a demand from the tax office for $950 in interest on a miscalculated spousal RRSP payment. Judge Hughes acknowledged he could not order the CRA to change its calculations on the matter, but he could award the couple costs in mounting their challenge.
He ordered the tax agency to pay the couple $1,200 and then dismissed their case.
[More]
It’s about time that the arrogant functionaries were reminded that they were civil servants, not overlording masters.
People who have tried to do their civic duty and follow the ever incresingly complex rules should be treated fairly. In this day, ignorance of the law can be a legitimate excuse. We know that the people who write the laws don’t even know what they’re voting on.
The next time a happy face politician appears at your door give him a piece of your mind.
And more importantly, the complexity of the tax system must be addressed. It has become an unbelievable mess…..and virtually all due to decades of governments that have used the tax system as a tool for social experimentation. It is an absolute disgrace.
Bring on a flat tax.
Big government at its worse. Hopefully the present one will make positive changes but dont hold your breath.
Interesting info on the benefits of a flat tax. A form of taxation I have advocated for 20 yrs I might add.
http://www.fcpp.org/publication.php/2433
When trained accountants make errors the system is way too complex. My son’s father in law teaches accounting at the U of A and he won’t even touch income taxes. A good friend of mine tried to become a certified accountant but he failed the tax portion 3 times. Prior to that he was on the Dean’s honour role.
Why not a fair tax – 10 to 15% consumption – no personal income tax? “The poor” could be subsidized in some matter to ensure that they are not at a percentage type disadvantage.
I have always been in favor of a “flat tax”.
We can save billions.
Re #7 : Works for me or a total tax load of 33% maximum counting all taxes and service fees by the State ?
I would be happier with 10% – !5% but that is maybe too low considering the accumulated debts by all levels of Government, but it might work if one could wipe the slate clean and start over with a fresh system.
Deficits should be illegal or limited to short 3 to 5 year periods and in good times a small surplus reserve should be accumulated after the debts are paid off.
Government spending capped to match income most years and any unspent money shouldn’t be spent by Government departments at the end of the fiscal year because the bureaucracy fears having it budgets cut if they don’t spend it all each year: Any unspent spending room going to pay any debts or accumulating a surplus. The yearly budget should be balanced and preset for multiple years at a time and not reduced the next year if not spend in any given year. If the budgeting is calculated on a realistic basis the above might be possible ?
Getting from here to there is the problem assuming my suggestions is actually workable if we where actually creating a new system without the drag of the actual present situation ?
Re: #9… “Works for me…”
Indeed. This situation is so bad that a taxpayer — with a special tax program generated by “Tax Canada” — is mind boggling. An entire new industry has been built on the shoulders of Canadian taxpayers. So complex that THEY (hired help) can’t figure it out.
If you took the entire Canadian tax code, printed it out and placed it on a table — that table would collapse. There is not one judge in all of Canada that understands it all and there is not one Canadian — “anywhere” — that can fill out their own tax return without an error.
Time to change the picture and “flat tax” is the way to go.
I’d like to see a flat tax become a serious party policy issue in Canada. Heck, politics might even be able to generate a pulse in Canada if that were ever to happen. Imagine, a brand new idea instead of the old recycled ideas dredged up and dusted off from the same old party crappola piles every election cycle. Boring is an understatement when it comes to Canadian politics. A Canadian political party fully explaining and genuinely supporting a flat tax might even be successful in getting Canadian’s minds off the next tv reality show. What a novel concept. And it would be good for the entire country to boot.
http://flattaxes.blogspot.com/
Re # 11 I agree but any Party proposing a flat tax should do a good selling job explaining how it would work, why it would be good for the majority of people, defend the idea from the Social programs tax and spend groups with a vested interest and ideological bent to want to keep the present system i.e. All the other political Parties, the civil service, the poverty industry and most of the Koolaid drinking MSM who can be counted on to be against the idea and not report both sides of the issue fairly.
The Conservative Party has to become much better at selling ” IDEAS ” in spite of MSM resistance I think.
Re: Flat tax
Many would agree with this idea. We could toss out everything and begin again.
However, we still have to deal with “Iggy” and he won’t like that idea.
My view: Our tax system is so complicated that I no longer understand it and I find that repulsive. It seems to me that anyone in Canada should be able to drag out a calculator and complete the return (with no mistakes) without specialized help.
I also think that we don’t need more lawyers to protect us.
A “flat tax” is the way to go.
Simple, fair and understood by all.
A tax return under a flat tax system could be filed on a postcard. Hook up that flat tax defibrillator to Canadian politics and let’s rock and roll.
http://en.wikipedia.org/wiki/Flat_tax
Is it safe to assume then that everyone is against the HST — Harper Sales Tax?
Memo to UV check out #7.
If someone successfully introduced a flat tax, what would we do with all of the unemployed accountants and tax bureaucrats? Soylent Green, anyone?
I don’t know whether it’s true or not but I heard one time that a guy who was dealing with the Canada Revenue Agency asked the bureaucrat what steps he (the tax nasty) was taking to ensure he was respecting the Charter’s Section 8 declaration of prohibition of unreasonable search or seizure. The tax nasty alleged claimed his job wasn’t subject to such petty restrictions.
My father in law, in his declining years refused to file taxes for his little company for about 5 years. Revenue Canada began riding him and I witnessed one such confrontation. The little tax collector faced an 80 year old man and boldly declared, “you realize you can go to jail for this.” The old man responded, “I suppose you think that is a threat?” The little lady left and waited until the old boy passed to go through the books. There were no taxes owing.
I had a dream to make my organization, however I didn’t have got enough of cash to do this. Thank goodness my close mate recommended to use the mortgage loans. Hence I used the collateral loan and realized my dream.
Jack, you’ve got 2 options here -
1) Turn on a CAPTCHA plugin. Even a 2-letter verification would kill most of this spam
2) Install the plugin that automatically removes URL’s from the poster name – hence, killing much of the incentive to spam.
In any case you’ve become too big and too influential to fly along with no protection.