Taxman entitled to criminals’ profits

“It’s common knowledge, no matter what the activity, you have to pay your tax"

Cam Fortems – Kamloops This Week

Even criminals are required to hand over a piece of their profits to the taxman.

An Ontario tax lawyer said a recent decision by the Tax Court of Canada that required the operator of a grow-op to pay taxes based on revenues calculated by an expert is a well-understood area of law.

Robert Hole appealed a decision by the Minister of National Revenue to the Tax Court of Canada. Justice David Graham determined the Clearwater resident did not declare several hundred thousand dollars in revenue from a marijuana grow as well as income from a logging business.

“It’s common knowledge, no matter what the activity, you have to pay your tax,” said lawyer Alex Klyguine.

“People should be aware Canada Revenue Agency [CRA] doesn’t distinguish between what is legal and illegal.”

A review of cases heard at the Tax Court of Canada shows people who have profited from both marijuana grow-ops and cocaine trafficking have been assessed tax penalties by CRA.

The federal Liberal government is expected to introduce legislation next year to allow sale of recreational marijuana in a structured system.

While illegal growers may compete with legal sales, Klyguine said those black-market growers will face the same tax penalties as today’s contraband farmers if they flout the law.

“I think they should expect the same treatment as today…. What matters is if it meets the definition of a business and if it’s a business, it’s going to be taxed.”

 

Marijuana growers also face the prospect in some cases of civil forfeiture by provincial authorities, who can seize assets including homes and vehicles even in the absence of a criminal conviction.

 

 

Just Posted

VIDEO: Researchers rely on drones to survey aftermath of B.C. wildfires

UBC researchers are using aerial drones to study the historic 2017 wildfires in the province

Report gives details on proposal to relocate Grade 7s

According to the report, there has been some interest generated in the communities to relocate

This weekend at the Sportsplex

Here is the schedule for the North Thompson Sportsplex for the weekend of Dec. 15 – 17

Province rejects Ajax mine in Kamloops

KGHM Ajax had proposed a 1,700-hectare open-pit copper and gold mine, just southwest of Kamloops

Thompson Rivers University students — by the numbers

Thompson Rivers University enrolment has increased during this school term compared to 2016

VIDEO: Average Canadian food bill to rise by $348 in 2018

Atlantic Canada and B.C. will see the most increases for consumers

‘The Last Jedi’ opens with $220M, 2nd best weekend all-time

As anticipated, the movie fell shy of the opening weekend for J.J. Abrams’ 2015 franchise reboot

2 couples tie the knot in Australia’s 1st same-sex weddings

West Australian couple Anne Sedgwick, Lyn Hawkins have been together for 40 years

B.C. concert promoter bans Nazi symbols at shows

A man was witnessed making a Nazi salute during a heavy metal show at Pub 340

EDITORIAL: Putting #MeToo to work in your workplace

Workers from top to bottom need to stand together against the bully of sexual harassment

Owl found dead after eating rat poison leaves B.C. woman concerned

After finding the owl on her Surrey property, Christine Trozzo says the poison is a concern for kids

Change to CPP death benefit panned as insufficient to cover funeral costs

Funeral Services Association of Canada lobbied governments to raise the value to $3,580

#MeToo at work: Employers play a role in fixing culture of sexual harassment

B.C. workplaces are getting ahead of being the next MeToo debacle, calling on experts to train staff

B.C. woman brain injured in crash as a baby gets $1.1 million in damages

Trial heard the woman was 16 months old, being carried by her mother when they were both hit

Most Read