Canada’s Income Tax Act (“ITA”) now recognizes private persons income. A July 2017 amendment states income benefits private persons unless they receive government benefits. Canada Pension Plan (“CPP”) is a government benefit. So is almost everything on CRA T1 forms. This corroborates Apu’s Theory on how Canada’s income tax seems to really work.
The Financial Action Task Force on Money Laundering (FATF) was established by the 1989 G-7 Summit. The FATF has 37 members, including Canada. It responds to money laundering. ITA Section 270 to 280 is titled, “Common Reporting Standard”. It is for Canada complying with FATF recommendations. They are the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation.
ITA Section 270 complies with FATF standards on combating money laundering
The definition of “government entity” in ITA Section 270 (click to download 3-page highlighted PDF) states,
(i) income is deemed not to inure to the benefit of private persons if such persons are the intended beneficiaries of a governmental program and the program activities are performed for the general public with respect to the common welfare or relate to the administration of government, and
(ii) income is deemed to inure to the benefit of private persons if the income is derived from the use of a governmental entity to conduct a commercial business that provides financial services to private persons.
Duhaime’s online law dictionary says “inure” means, “To take effect, to result; to come into operation.”
Apu’s Theory concludes Canada’s ITA deems individual income as Canada’s “public money” for a federal CPP/ITA “officer”. Such an officer is a “beneficiary of a governmental program”. Therefore, receiving CPP means such an officer’s income is not private persons income as their private property. (So is every benefit on CRA T1 forms.) ITA Section 270 reduces obfuscation in Canada’s ITA. This means self-assessment includes assessing whether it is private persons income or “public money” for Canada’s office. This is Bill Mori’s legal argument for the Tax Court of Canada. It also was Bob and Terry Steinkey’s position in their tax evasion trial.
Receiving CPP means such an officer’s income is not private persons income (as their private property)
ITA Section 270 corroborates Apu’s Theory on how Canada’s income tax seems to really work.