The TaxMan Cometh

Here we are again in April and the taxman expects everyone to have their tax returns filed by the middle of this month. What a stupid idea that is. If you work for someone who has taken taxes off of your pay then I can accept that you want as much of that back as you can get but let’s look at a couple of options that anyone having some intestinal fortitude (“balls” for the linguistically challenged) might want to consider.

1) You work for a company that deducts taxes from your paycheck

If you work for a company that automatically deducts taxes then you are likely in the majority of people on this planet. Some people do in fact own their own businesses and others are freelancers but I’ll address you people in a bit. Right now I want to focus on the majority.

If you believe your earnings are in fact “taxable income” please show me where in any statute is states that. The fact is even my military pension governed by the Canadian Forces Superannuation Act does not state anywhere that “a benefit under this plan is taxable in accordance with the Income Tax Act”. If your local legislation doesn’t state specifically that your income is taxable then in reality it probably isn’t.

Now before you all start screaming at me that you don’t consent to be governed by statutes or any such thing like that let me explain. By taking a job with a company registered in the province or state that you live you DID consent to follow the legislation governing that company regarding your employment. You may try to claim that you did so under duress but that is a lie and you know it. No one forced you to seek out employment with a registered company or any company for that matter. You did it of your own free will.

With that said you need to investigate what exactly those regulations state. Now I know you were told that your “income” is taxable but have you ever seen it in writing in a document or statute that regulates your employment? I doubt it and like most people you just accepted what you were told. That’s a major problem with this world not just the freedom / “time for a change” movement. Many of the people who tell you to do your research actually mean “listen to my favorite preacher and believe what he/she says”. But that’s a rant for another day. Simply stated if you are employed by a corporation telling you your income is taxable, the fact is it’s probably not.

2) You’re contracted with a corporation who deducts taxes from your remuneration

Again there is probably nothing within your contract that states that your services are taxable under the Income Tax Act of your country. As a salesperson or other contract worker the fact is that you are essentially self employed as the remuneration is typically by commissioned sales or piece work. IF you read your contract before you signed it as you should have and you have a copy on file as you should (these are common sense practices for contracting) then you should know that no where does it state that you efforts are taxable.

Further as a “self employed” individual your contract partner has no right to take your revenues to pay your “alleged” debts of any form; including potential tax debts. This has been fought in the courts and won. If CRA or whatever taxman agency wants to garnish your revenues then they have to prove that they actually have the legal right to do so. I have not seen anywhere written in any regulation where any tax agency has the legal or lawful right to take your resources. In fact, my recent year long battle did not end in a decision against me but rather in a Justice of Ontario cowarding out and claiming he lacked jurisdiction over the matter.

3) You have your own registered business

Regarding this situation, I don’t really know what to say. Why would you register with the state for anything that you don’t have to. There is no law requiring you to register your business or to incorporate with the state or crown. As a businessperson you know that there are 4 types of businesses one of which is sole-proprietor. Incorporation or registration is an option when setting up your business. No one forced you to register or incorporate with a separate corporation calling itself the state. As such your business is likely obligated to pay taxes on it’s profits but you as an employee of the business fall into category 1) work for a corporation.

You may be the CEO, CFO and many other titles under the corporation but the fact is you are still an employee and your income probably isn’t taxable. You, as an intelligent business person, should know and understand this. So pay your taxes on your business income and treat your paycheck like the employee you are.

4) Unregistered self employed

This is your best position to be in. I don’t care if you bum for spare change outside the liquor store, mow lawns or sell home made pies to generate income. Not telling the state who you are and how you generate revenues is how every person should go about their lives. The less the state knows about you the better off you will be. Even if you don’t make 6 or 7 figures a year.

As a person who doesn’t generate revenues through a registered company you totally control whether you notify the taxman about your activities on your own. Obviously, you probably don’t really track and report your income revenues. I believe the courts have ruled that gifts and donations are taxable so the spare change you acquired from corner is suppose to be reported but the fact is that only a moron would do that and no one in fact does. It’s a scam on the state/crown’s behalf and even they know no one would be stupid enough to report “income” from bumming on the corner or selling home made products. If you fall into this category then you, my friend, are my hero. You have truly left the system behind you and moved into living independent of it. The status that many in the freedom movement claim to want but refuse to let go of their security blanket to achieve. DON’T BE STUPID AND START REPORTING ANYTHING TO THE STATE.

5) So what should we do about the taxman and his claim of debt?

Legally the tax system in every country allows anyone to challenge their tax debt through the courts. Every country has a tax court and probably some ruling in the superior court to the tax court similar to McKinney v. University of Guelph stating that legislature can’t regulate private persons or private businesses or some other ruling stating that taxes are voluntary and not mandatory. Here you will have to do some REAL research to investigate it.

What I suggest you do, and this is totally up to you as it will require some balls as I stated at the beginning, is file your tax slips with the “taxable income” slot blacked out or with 0 (zero) in the column. Claim that you made no “taxable income” during the year and at the refund place put the sum total of all taxes deducted. YOU WILL BE REASSESSED. When the taxman reassesses your return file into the tax court a challenge on the assessment and demand evidence that any of the income claimed by your employer is in fact “taxable”.

Don’t let them get away with the “well of course it is” bullshit line. Demand to see where in writing it says it’s mandatory taxable income. They’ll never provide it as it doesn’t exist.

If everyone starts doing this it will do two things that I can think of straight off. One, it’ll jam up the courts so bad that they’ll never be able to deal with everyone. This pisses them off. If you doubt that then just go back and read Rourke’s rampage against Robert Menard and Dean Clifford in the Meads v. Meads case. They hate people asking intelligent questions in court and they hate people challenging the system whether legitimately or not.

The second thing it’ll do is force the taxman to prove what is and isn’t taxable. I mean the Income Tax Act in Canada states that a taxpayer is “a person who does or does not pay taxes.” Now how stupid of a definition is that? Essentially they’re saying a taxpayer is a person. And yes in this case, using the proper definition principles and going to the Interpretations Act, since the ITA doesn’t define person, it says that a person is a corporation.

Conclusion

In summary I challenge everyone to protest income taxation and to be as big a pain in the ass as you can. Clog up the system and make them pay for every penny they collect. Stop complying and stop believing everything you’re told because they’ve never told the truth once. Not once. They won’t even admit that the “income tax” collected is just to pay for the corporate debt that they’ve acquired from private bankers and not to pay for roads and schooling and other public services. Those services are paid for out of other taxes.

Stop supporting a corrupt and failed system. Stop supporting the banking cartel that is robbing everyone blind. Stop paying “income” tax and start fighting the system that you don’t support. I’ll see you in the hallways of tax court this summer. Until then, have a great day.

– Rob