Privatize Crown corporations is a myth. This is because shareholders in the so-called private sector are not investing with their private property. Shareholders are Income Tax Act “officers” investing with Canada’s “public money“. This would include shares held, monies borrowed to buy shares, and all dividends received by shareholders. They all form part of Canada’s Consolidated Revenue Fund (CRF). This fits with CRA T1, T2, and T3 forms reporting “public money” earnings.
A CBC article this past week announced the Province of Saskatchewan had passed Bill 40, which amends the legal definition of ‘privatize’. This allows Saskatchewan to sell off up to 49% of any Saskatchewan Crown corporation. The Province does not need the approval from the people. Bill 40 betrays the Saskatchewan people according to the Opposition. The future of the Crowns are at stake according to the SGEU.
If Apu’s Theory on how Canada’s income tax system really works is correct, this means the (up to 49%) transfer of Crown corporation ownership is nothing more than a transfer from Saskatchewan’s General Revenue Fund (GRF) to Canada’s CRF. This transfer represents a net gain for the Canadian Crown at the expense of the Saskatchewan Crown. That is why I propose privatize Crown corporations is a myth.
CIC of Saskatchewan ensures Crown corporations dividends are paid into the GRF. Both the GRF and CRF have March 31st as a financial year-end, the importance of which is found here. All Saskatchewan public monies flow into and out of the GRF.
Privatize Crown corporations means, in this case, Saskatchewan transferring up to 49% of shares into Canada’s CRF. This is because “officers” under the Income Tax Act (“ITA”) are the shareholders. Their shares and dividends will form part of Canada’s CRF.
Opposition leader Trent Wotherspoon called the bill an “incredible betrayal of Saskatchewan people by the Premier and the Saskatchewan Party.”
All corporate shareholders (resident and non-resident) require a Business Number (BN) to report their dividend earnings.
In addition, individual shareholders (resident and non-resident) require either a social insurance number styled in all lower case letters (SIN), individual tax number (ITN), or a temporary taxation number (TTN) to report their dividend earnings.
Finally, trust shareholders (resident and non-resident) require a Trust Number (TN) to report their dividend earnings.
Private corporations require mandatory T2 filings. In addition, private corporations must file a T2 Schedule 50 information on shareholders as Income Tax Act “officers”. Note that CRA’s T2 Schedule 50 form identifies shareholders as ITA “officers” with the SIN used as a social insurance number styled in all lower case letters instead of the SIN styled in upper and lower case letters.
The T3 Statement of Trust Income also identifies a trust dividend recipient (in Box 12) using a social insurance number styled in all lower case letters. This is also consistent with Apu’s Theory.
While not one of the twelve Tax Filing Myths, privatize Crown corporations also appears to be another myth. Shareholders do not buy shares with their money as their private property. Since shareholders are ITA “officers”, they buy shares with “public money”. The “public money” in the form of shares, and the ITA “officers” that handle them, can even be in another jurisdiction. Apu’s Theory concludes it is the ITA “officer” that is resident or non-resident. Since the Government does not want Canadians to learn about the ITA “officer”, this could be why the ITA has no legal definition for “resident” or “non-resident”.
While leprechauns and the private sector are myths, Canada’s CRF is a pot of public money (gold)!
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