On July 20, 2016, Canada launched the new Canada Child Benefit (CCB). Over 1.6 million Canadians have visited the CRA website to calculate how much “free money” they could receive through the CCB. As government is notoriously inefficient, could you be further ahead financially by declining CCB? Why is the Government so adamant that you apply for CCB for your children? Is there a hidden agenda?
Accepting any benefit on CRA’s T1 form, such as CCB, mandates reporting all your income. Canada borrows from the International Monetary Fund (IMF) to help pay its national debt. Apparently a condition of receiving IMF loans is that all Canadians must report all their income. This is why the Government pushes benefits and makes it very difficult to decline them. I know a taxpayer who declined the former Child Tax Benefit. It took four letters from her for the government to finally acknowledge it 16 months later.
Applying for CCB also requires getting Social Insurance Numbers for your children. From Apu’s Theory, applying for their SINs used as Social Insurance Numbers means they become liable for the national debt when they turn 18. Also in line with Apu’s Theory, CCB uses your children’s SINs as social insurance numbers instead of as Social Insurance Numbers. This is because CCB is paid from public money, the Consolidated Revenue Fund (CRF), so it is paid to your children as Income Tax Act “officers” identified by their SINs used as “social insurance numbers”.
Benefits are always voluntary. Canada’s first child benefit was Family Allowance in 1945. Initially it was paid regardless of the family’s income or assets. You did not have to report it. The program was amended in later years to be subject to tax. You then had to report it as taxable income on a T1.
Apu’s Theory (Chapter 9) shows Revenue Canada in 1991 started using the SIN as a social insurance number on their T1 forms. Around 1992 Mulroney removed the reserve requirements for Canadian banks, stopped borrowing from the Bank of Canada (with no interest), and started borrowing (with interest) from foreign banks such as the IMF to pay Canada’s national debt. Mulroney also discontinued the Universal Family Allowance in 1992. The Canadian Child Tax Benefit started in January 1993 in its place. This combined the former family allowances, refundable child tax credit, and non-refundable credit for dependent children into a single tax-free monthly benefit paid from public money, the CRF.
In essence, what started out as free money morphed over time into a control mechanism for harvesting tax information from all Canadians so that Canada could borrow money from the IMF.
CRA only provides a form to file income that is “public money” for the CRF. CRA does not provide a form to file private property income. Canadians inadvertently end up converting their former private property income into public money for Canada as soon as it is reported on their T1 due to this underhanded tactic . Unless they are familiar with Apu’s Theory, Canadians do not know how to report to CRA any income that is their private property. As income tax is linked to you handling public money, this increases the amount of public money for the CRF.
Can you apply for CCB but report your income as your private property? You can, according to Apu’s Theory. That would be gaming the system. It may be legal, but is it ethical to take out of public money without contributing? Some would argue that Canada could afford it as it is among one of the richest countries in the world in terms of its natural resources. A World Bank study estimated Canada’s natural wealth in the trillions of dollars. That means every Canadian is a millionaire. Canada arguably can afford to dole out CCB to Canadians who do not contribute. Don’t forget Family Allowance started out that way in 1945.
I don’t do that as I accept no benefits on a T1. I also don’t recommend it. But you have to answer that question with your own moral compass.
The CCB entices guardians to sign up their children for Social Insurance Numbers while they are underage. Their children then automatically become liable for the national debt when they turn 18. As their guardians signed them up when they were underage, these new adults probably will not realize how they become saddled with this debt for the rest of their lives, unless they stumble across Apu’s Theory. (It should be possible for them to resign, however).
Registering for the CCB also requires spouses declaring their tax relationship with each other. The CCB interlinks all family members so that “no taxpayer (is) left behind”.
In conclusion, the CCB is a very effective tool for harvesting information on all Canadians declaring all income so Canada fulfills its reporting requirements to the IMF.
Categories: Canada Child Benefit (CCB), Social Insurance Number, social insurance number
Tags: CRA T1 Form, IMF, Consolidated Revenue Fund, national debt, public money, private property
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