Wednesday, 19 October 2016 12:48

Canadian political shanangians — say it isn’t so

Written by  Dale Ferrel
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As our Canadian union bosses lobby hard for our government to prop up their ridiculous salaries and perk demands for their workers, they further demonstrate that they are totally out of touch with the real world. 

Money to kick start  or train for modern, in demand jobs is fine but they remain 30 years behind the rest of the world in their thinking.
First they cannot compete with cheap Chinese or Mexican labour to start with. The latest innovation in China will put the last nail in the coffin for even the cheap Chinese labour. The Ying Oo Kitchen Utensils Factory has just installed nine robotic arms that replaced 256 workers. Production remained the same and reliability and efficiently improved. Need I say more?
The Canada Revenue Agency, (CRA), signed onto a global system for tax information exchange agreements, (TIEAs). Our Liberal government pledged $444 million over five years to fight tax evasion. To date, the CRA won’t even confirm that they have received “any” information from the more than 100 countries in the program.
Billions of tax dollars from corporations remain untouched while the CRA makes a half hearted attempt to find offshore money from individuals. Finance Minister, Bill Moreau, when pressed for an answer as to why the CRA was toying with TIEAs while increasing the flow of offshore money when they should be halting it, was lost for an answer.
Some examples: Drug Maker, Valiant, showed $1.1 billion in profit in 2014, but paid only $119 million or one per cent in taxes. Gillian, a Montreal clothing manufacturer, had a $396 million profit in 2015 but paid only $6 million in taxes, about two per cent. What the companies do, using offshore tax havens, is completely legal.
As an example, a tax treaty with the Barbados, in place since 1980, allows titans like Loblaws and Petro-Canada, among more than 1,000 others, to pay only 2.5 per cent. Even better rates were made available with Turks, Caicos and Aruba, along with 20 other countries by a deal signed in 2009.
Since 2011, Stats Canada estimates that an epiphany of $55 billion has legally but incongruently flowed to havens. Bermuda, with a zero per cent tax, has doubled their take since then, while $20 billion went to the Cayman Islands. These two countries alone, now have more Canadian investment than Brazil, Australia, China and Mexico combined.
Canadians should be screaming their condemnation by the thousands outside the doors of parliament over this terrible depravity of our tax system. Sadly, although this abhorrent travesty could easily be repudiated immediately, the Liberal arbiters seem only capable of hiring some of their stalwart friends to study the issue.

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