Tag: Yente

OTTAWA — A Conservative plan to allow Canadians to use income splitting as a tax-saving measure will be just one more example of the federal government financing its policies partly through provincial coffers, a new study says.[np_storybar title=”Income splitting would cost taxpayers $3B a year and benefit only 10% of households: study” link=”https://business.financialpost.com/2014/06/10/income-splitting-would-cost-taxpayers-3-billion-a-year-and-benefit-only-10-of-households-most-of-them-in-alberta-study-finds/”%5DThe Harper government’s income splitting plan is more expensive than previously believed, helps even fewer Canadians than earlier thought and would benefit Conservative strongholds such as Alberta and Saskatchewan more than other provinces, according to a study by the Broadbent Institute. Keep reading. [/np_storybar]The Mowat Centre report says if the federal government goes ahead with its plan to introduce income splitting, the provinces would have no choice but to follow suit thanks to existing tax agreements.And that would cost provincial coffers around $1.7 billion a year at a time when everyone is strapped for cash.“The federal government has walked out of the bar and the bill is sitting on the table and the provinces are going to have to pick it up,” report author Sunil Johal said in an interview.It’s far from the first time the provinces have been impacted financially by new federal measures.[Ottawa] has walked out of the bar and the bill is sitting on the tableEarlier this year, the provinces won a hard-fought battle over the controversial Canada Job Grant program, fearing Ottawa would claw back federal job-training dollars even as it forced provincial governments to foot their share of the bill.They’ve also been vocal of late in expressing frustration at the billions of dollars they expected to have to pay as a result of Conservative criminal justice reforms.The Tories promised to allow income splitting during the 2011 campaign, saying it would take effect in 2015 as long as there was a balanced budget, which is now expected.The toxic duo of taxes and inflation on high-net worth CanadiansKenney says Ottawa to proceed with income splitting, despite report saying it may worsen income inequalityThe plan would allow spouses with children under 18 to divvy up their incomes to a maximum of $50,000 in order to reduce their overall tax bill.The government estimates 1.8 million families could save an average of $1,300 a year.But critics, including the late former finance minister Jim Flaherty, have suggested the policy is a flawed one.The Mowat Centre, based at the University of Toronto, bills itself as a non-partisan think-tank. But multiple studies from across the political spectrum have found that in some provinces, existing tax structures mean no families will benefit. In others, some in high-income brackets would see only minimal financial savings.Despite the criticism, however, the federal government has insisted it will press ahead with the measure.The provinces would likely be on the hook because of the tax collection agreements all of them save Quebec have signed with the federal government over the last 50 years, the report said.The deals mean there is only one tax collector for the various federal and provincial levies, which saves everyone money. But as a result, the affected provinces all use the same definition of taxable income.That means if the federal government changes the definition, the provinces will have to go along.The tax agreements are a key part of the economic union in Canada, Johal said.“But at a certain point, if things like this keep happening and the cumulative impact of these decisions reaches a certain dollar value, the provinces are going to have to make an assessment: ’Is it really worth it to us to stay in these agreements if the federal government is going to continually make unilateral decisions?”’But amendments to the agreements or an offer by the federal government to compensate the provinces for lost tax revenues are options that could be explored before the provinces just walk away, he added.For example, Ontario’s agreement with Ottawa on the collection of the harmonized sales tax protects the province from any decision that would result in a 1% revenue decrease. If the province doesn’t agree with the decision in writing, the federal government has to pay up. read more

by The Canadian Press Posted Feb 23, 2017 11:30 am MDT Last Updated Feb 23, 2017 at 12:20 pm MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email Former Valeant and Philidor executives plead not guilty in fraud scheme MONTREAL – A former executive with Valeant Pharmaceuticals and the head of a defunct U.S. mail-order pharmacy pleaded not guilty Thursday to conspiring to defraud the Quebec-based drug giant through a multimillion-dollar kickback scheme.A lawyer for Gary Tanner, 39, a former executive at Valeant (TSX:VRX) confirmed that his client and former Philidor Rx Services CEO Andrew Davenport, 48, entered the pleas in the U.S. District Court in Manhattan.The pair were arrested last November and each charged with four counts, including wire fraud, conspiracy to commit wire fraud and conspiracy to commit money laundering.Investigators allege that both accused conspired to obtain tens of millions of dollars from Valeant and split the proceeds.In a 28-page complaint, FBI special agent Ryan Redel alleged that Davenport paid Tanner about US$10 million in secret kickbacks. The complaint said that money was laundered through shell companies and came from a US$40 million payout Tanner received from Valeant.The men are alleged to have used the proceeds to buy second homes, pay debts and make investments — and in one case, Davenport spent US$50,000 for the installation of a custom wine cellar, according to the complaint.Tanner’s lawyer Howard Shapiro declined to comment but has previously said his client was innocent and regularly communicated with his Valeant bosses about his efforts to grow the company.Davenport’s lawyer and Valeant could not immediately be reached for comment.Valeant was once Canada’s largest firm by market capitalization. But its reputation has taken a beating since its affiliation with Philidor, a Pennsylvania-based mail-order pharmacy that mainly distributed some of Valeant’s specialty drugs, was disclosed.The company cut its ties with Philidor in October of 2015 and three months later, Philidor ceased operations. read more