Archive for the ‘Tax Freedom’ Category

B.C. tax protester sentenced to 4.5 years in jail

Date: Friday May. 11, 2012 9:55 AM PT

A B.C. tax protester who preached a bogus scheme to evade the Canada Revenue Agency has been sentenced to four years, six months in jail and fined $274,815.

Chilliwack resident Russel Anthony Porisky was convicted on two counts of tax evasion and one count of counselling to commit a crime in January after both following and prescribing the repeatedly-disproven "natural person" theory.

The legally flawed presumption is that one can avoid paying taxes by declaring themselves a "natural person" rather than a taxpayer an argument Canadian courts have consistently rejected.

The CRA responded to Porisky's sentence, handed down Thursday in B.C. Supreme Court, with a warning to others of his ilk who subscribe to what the agency describes as dangerous "tax myths."

"Individuals who plan to use the tactics of tax protesters should know that this could have significant personal and financial consequences, including fines, imprisonment, or seizure of goods," the CRA said in a statement.

Those convicted of tax fraud are on the hook for past taxes owing, plus interest, and can be fined up to 200 per cent of their unpaid taxes, it added. They can also faceup to five years in prison.

Porisky's common-law wife Elaine Gould was also fined $27,434 for one count of tax evasion and given a six-month conditional sentence.

Together, the couple ran a company called Paradigm Education Group, which offered seminars, consulting services and other products teaching clients how to apply the "natural person" theory.

Porisky earned $555,782 from 2004-2008, all from Paradigm. The company's "educators" charged seven per cent of a student's income for two years -- a system resembling taxation and funneled a portion of that back to their boss, who also profited from the sale of his books, brochures and DVDs.

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B.C. tax protester sentenced to 4.5 years in jail

Restrictions On Italian Private Tax Collectors Declared Illegal

11 May 2012

The Court of Justice of the European Union (ECJ) has decided the Italian provision that private operators should have a share capital of at least EUR10m (USD13m) in order to be entitled to collect local taxes is contrary to European law on freedom of establishment and freedom to provide services.

It was noted that Italian local authorities may choose to award the tasks of assessment and collection of taxes to third party operators. In that case, those activities are awarded by means of concessions which comply with EU legislation on the tendering of the management of local public services.

Italian legislation also provides, however, that private companies seeking to carry out those activities must have a fully paid-up share capital of EUR10m, whereas companies in which a majority of the share capital is in public ownership are not subject to that condition.

In consequence, the Italian Regional Administrative Court in Lombardy has been asked to rule in several sets of proceedings between private companies and regional municipalities, as the former submitted tenders for the award of concessions but were then excluded from the procedure because they did not have the required EUR10m share capital.

The Italian court, in turn, referred questions to the ECJ concerning the compatibility of the Italian legislation with EU law and, in particular, with the rules on freedom to provide services and freedom of establishment.

In its judgment, the ECJs reply is that the Italian legislation does amount to a restriction on freedom of establishment and freedom to provide services inasmuch as it contains a condition relating to minimum share capital. Consequently, such a provision impedes or renders less attractive the freedom of establishment and the freedom to provide services.

In addition, however, the ECJ then goes on to examine whether such a restriction may be justified by overriding reasons in the public interest, with the only ground of justification raised before the court being the need to protect public authorities against possible non-performance by a concession holder, in the light of the high overall value of the contracts which have been awarded.

The ECJ notes that a restriction of fundamental freedoms may be justified only if the relevant measure is appropriate for ensuring the attainment of the legitimate objective pursued and does not go beyond what is necessary to attain that objective; but that the Italian court had given other provisions capable of providing adequate protection for public authorities, including other proof of the operators technical and financial capacity, creditworthiness and solvency, or the application of minimum thresholds for share capital that vary depending on the value of the contracts actually awarded to the concession holder.

Consequently, the ECJ finds that, as the Italian provision goes beyond the objective of protecting the public authorities against non-performance by concession holders, it also contains disproportionate, and therefore unjustified, restrictions of fundamental freedoms.

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Restrictions On Italian Private Tax Collectors Declared Illegal

Morriss: Attack of the Nanny State

TUSCALOOA, Ala. Proponents of an American Nanny State have a plan to improve your health: Tax sugar and junk food so you will eat less of it.

These plans for bureaucrats and politicians to remake your diet are bad news for four reasons.

First, it is no ones business but yours what you eat. The freedom to eat a slice of apple pie might not sound quite as stirring as freedom of speech, but the ability to choose how to live our lives is the most fundamental freedom. What you eat is no ones business but yours.

Second, even if the government has a role to play in guiding our dietary choices, efforts at restructuring Americans lives via the tax code are fundamentally flawed.

This strategy has given us a tax system of unimaginable complexity: The Internal Revenue Code is almost 10 million words long. The leading publication for tax professionals takes up nine feet of shelf space. And that doesnt count the tens of thousands of pages of laws and regulations concerning sales, use, property, excise, and other taxes levied by government.

Taxes need to be simple and easy to administer. As tax laws get fatter, they clog our economic arteries and stifle growth. Trying to fine tune Americans diets via a junk food tax will further fatten the tax laws, and the wallets of accountants and tax lawyers.

If there are any Americans unaware that sugar and potato chips are fattening despite our $35 billion per year diet industry we dont need a tax to enlighten them, just some public service announcements.

Third, the governments record on dietary control is problematic. The federal government has been involved in the sugar market since the War of 1812. Nanny Staters promise that this time theyll get things right, but if they havent managed to do so in 200 years, why should we believe them now?

The details of official rules are written in back rooms in Congress and government agencies. When those details are drafted, those best able to influence the results are the lawyers and lobbyists for special interest groups.

For sugar, thats the manufacturers of high fructose corn syrup and the 17 domestic sugar cane producers who reap millions of dollars annually under our current agricultural subsidies and sugar tariffs.

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Morriss: Attack of the Nanny State

Tax Collector's Office Receives Worksite Wellness Award

WEST PALM BEACH, Fla., May 10, 2012 /PRNewswire/ -- Anne Gannon, Constitutional Tax Collector, has announced that her agency is the recipient of the 2012 South Florida Worksite Wellness Forum Award in the small business category. Bestowed by the Florida Heart Research Institute in partnership with the Consortium for a Healthier Miami Dade, the award honors organizations that have, according to the Institute, "demonstrated a commitment to employee wellness and whose programs produced positive health outcomes."

Gannon commented "I am very proud of our employees that embraced our wellness initiative. Florida Heart Research's Wellness Award is a wonderful recognition of their commitment to creating healthy habits for themselves and their families."

Gannon's agency has long been involved with wellness initiatives, including an innovative and long-term risk reduction program with partner Karelia Health. The motivation for the program implementation was to better the health of her employees while driving down escalating health care costsboth of which have taken place. "Rising health insurance premiums are alarming to businesses of all sizes. That's why they want to engage in strategies to combat escalating premiums. Companies want to control health benefit costs to protect their bottom line," said Gannon.

The award was presented to the Constitutional Tax Collector's Office on April 20th during the 2012 South Florida Worksite Wellness Forum and Awards at the Miami Beach Resort in Miami Beach. Bill Carew, President of Karelia Health accepted the award on behalf of Anne Gannon and the Office of the Constitutional Tax Collector. "This is a terrific example of how strong leadership can deliver exceptional results," Carew said. "By partnering with Karelia Health, the agency has dramatically reduced the incidence of chronic disease, reducing healthcare costs for taxpayers while improving the health, productivity and quality of life for workers."

The agency's focus on workforce health is not newin fact, Gannon was one of the first officials to implement a non-smoking policy. However, to truly implement a sustainable, long-term positive effect on the health of her employees, Gannon felt that a programmatic approach tied to health care costs was necessary. "I believe that government agencies need to step up and do our part to hold the line on costs," said Gannon.

About The Constitutional Tax CollectorThe Constitutional Tax Collector serving Palm Beach County collects and distributes over $3 billion annually in taxes and fees. The Office collects property taxes for every local government agency that has the power to levy, serves the county's agent for the administration of business tax receipts and tourist development taxes, issues driver licenses, identification cards, titles and registrations for automobiles, trucks, mobile homes and vessels as agent for The Department of Highway Safety and Motor Vehicles, and serves as agent for The Department of Environmental Protection, The Florida Fish & Wildlife Conservation Commission, and The Department of Revenue. The Constitutional Tax Collector is a separate and independent governmental entity to ensure freedom from influence by local or state agencies with the power to levy. The Tax Collector's budget is approved by the Florida Department of Revenue.

ABOUT KARELIA HEALTH The mission at Karelia Health is to save money and lives by preventing and reversing the progression of chronic illness in individuals at high and emerging risk for cardiovascular disease, diabetes and lifestyle related cancers. Karelia Health was originally founded in 1985 as Corporate Health Services of America and later as Health Navigators, LLC by Peter Townsley and Charles Taylor, MD. The core operating philosophy of the business originates in the field of preventive cardiology and has since been codified in the medical literature by the Centers for Disease Control & Prevention (CDC) through the National Cholesterol Education Program Adult Treatment Protocol III (NCEP-ATP III) Guidelines. For more information visit http://www.kareliahealth.com.

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Tax Collector's Office Receives Worksite Wellness Award

UK companies cut secret tax deals

10 May 2012 Last updated at 19:00 ET

Major UK-based firms cut secret tax deals with authorities in Luxembourg to avoid millions in corporation tax in Britain, the BBC's Panorama has found.

The programme obtained confidential tax agreements detailing plans to move profits off-shore to avoid what was a 28% corporate tax rate at the time.

Those involved include pharmaceutical giant GlaxoSmithKline (GSK) and media company Northern & Shell.

Both firms told the programme they have a duty to be tax efficient.

In the case of GSK, the UK-headquartered firm set up a new company in the tiny European tax haven of Luxembourg in 2009.

Because of the veil of secrecy surrounding all these decisions around tax...we, on behalf of the taxpayer, cannot be certain that this was a good, honest, proper deal

In 2010, the new subsidiary lent 6.34bn to a GSK company in the UK.

In return, the UK company paid nearly 124m in interest back to the Luxembourg subsidiary - effectively removing that money from the UK company's profits.

That move meant the money was no longer available to tax in the UK at 28%.

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UK companies cut secret tax deals