It's NOT "Under Reporting"! They are not required to Report world income in Canada!


Blog by Arnold Shuchat | June 15th, 2015


This June 14, 2015 article in the Vancouver Sun almost nails it with comments from previous Mayor Halsey-Brandy and current councillor Alexa Loo.  But it misses the mark ever so slightly.  The article is here: http://www.vancouversun.com/business/Part+Ritzy+Richmond+neighbourhood+where+many+poor/11136169/story.html

It is not a question of "under reporting" by families originally from another country as the former mayor indicates. Under Canadian Tax Law, individuals ARE NOT REQUIRED to report foreign income if he or she is not a resident in Canada for tax purposes. Plug that hole and the entire picture will change. To put it into perspective, none of the Canadians reading this would be able to easilly leave Canada and lose their Canadian tax liability. But it is easy to NOT move here as a foreign individual and not have to pay tax even though you can accomplish something that Canadian Tax Law never contemplated in its design: i.e. the break up of families which is done by foreigners in order to not have to pay Canadian Income Tax. This is the loophole that needs to be closed. It should 1. be against public policy to encourage family separation to reduce tax liability and 2.NOT be permissible to avoid Canadian residency even though one's family is "permanently" deposited/resident here and you remain outside of Canada except to visit occasionally. This is the crux of the matter and the ex-Mayor and Alex Loo almost have it right.

Plug that hole and we will be going a long way to fix this inequity!