AMENDMENT TO INCOME TAX ACT
SLOGAN: “FREE CANADIANS FROM TAXES”
- Currently payment of Corporate and Personal income tax is based on self-reporting.
- Taxpayers legally and illegally reducing amount of tax to be paid.
- Considerable number of taxpayers do not file tax returns for years
- Taxpayers use cash transactions to avoid taxation
- Taxpayers transfer funds overseas and use offshore to avoid taxation
- Efforts of Canadian Revenue Agency to recover tax arrears are costly and inefficient especially because the measures are taken years after the taxation period in question. Taxpayer may spend or hide all the money even by the time of the audit
- Taxation rules are very complicated and in many cases are not objective.
- The heaviest levy of tax is on the shoulders of the working middle class. This reduces their purchase ability and slows the economy
- Large corporations, by using offshore avoid taxation all together
- Redistribute the tax paid by the population evenly. Modern technology allows to introduce automatic taxation of all financial transactions passing through Canadian financial institutions. Calculate the lowest percentage needed in order to collect the same amount of tax. For example if the Federal Budget plans to collect 500 Billion in taxes and volume of financial transactions is 100 times more than this amount, introduction of 1 % tax will be enough to collect needed amount. Introduction of 1,5 % tax will increase the revenue by 50%.
- This will allow to free Canadians from obligation to file income tax. Although, those who wish will be able to use the current system of taxation and their financial transactions can be exempted from taxation.
- Spared income of the working middle class will be used to boost the economy by increase of the purchase ability of the population.
- Take measures towards reducing of the use of cash with the purpose to completely stop using cash. This will reduce illegal trade, will hit hard drug dealers and other forms of crime based on cash transactions. Decriminalisation of tax evasion / tax fraud, since both will no longer will be possible. Individuals and Corporations will return their assets to Canada.
- Substantial reduction of costs of Revenue Agency.
- Reduction of time used by Canadians to prepare Income Tax returns
- Reduction of number of Accountants and creation an opportunity for them to use their talent elsewhere.
- Review of similar suggestions in other countries.
- Calculation of the exact percentage needed to tax all financial transactions to compensate for / increase total of the federal income tax collected
- Research the options to include other taxes into the same system of taxation
- Conduct discussions with government officials on feasibility of this proposal