Feb 7, 2017
Last week we rolled out these strategy newsletters with the intention of exploring insider thoughts and ideas. To review that message click HERE.
Tax Court Appeal?
Some of you are wondering about our personal opinion of the GLGI Tax Court appeal launched by Winnipeg tax lawyer, Jeff Pniowky.
1st, a number of us have had private discussions with Jeff and listened to a recorded conference that is available on the Tax Court Appeal member page..To add to what's there:
1) Jeff is extremely accommodating with his time. Hasn't been 'too busy'
2) He is ultra confident and thinks there is a chance of initial results by June, 2017
3) Our belief is that to make this appeal worthwhile financially, one's tax debt
should exceed $25K, but can't discount the added value of delaying collections for those who's debt is lower
4) Their office is currently investigating a number of tax shelter appeals for other programs (ParkLane, RLG, Mission Life, etc)
Here is a potential alternative Tax Court appeal option that we will throw out for thought. Not to confuse you (because Jeff's program is tremendous), and this is only for those who have NOT YET received a Notice of Confirmation, and those who are aggressive risk takers...
When the Notice of Confirmation comes, CRA will present us with 2 options - pay in full or appeal to Tax Court. We are investigating the option of independently appealing (cost is $0 to $550) and hanging our hat on Jeff's result. That is, he doesn't represent me, but my appeal cites his file and indicates the appeal is a 'TEST' case for me. Maybe you recognize, or not, the subtle difference between 'test' and 'representative' but is the same difference as those who agreed to be bound to the 2015 GLGI court result, and those who didn't... i.e. continuing appeal rights.
Potential benefits: 1) save considerable fees and 2) because I have not agreed to be bound, then I am not represented by and dependent on the lawyer's case or timing. It could be the best of all worlds... if Jeff gets a great result then claim it represents me. If not, then the delay game can continue.
Will it work? Stay tuned, but 1st listen to the Jeff Pniowsky audio
If you ever get contact from Collections that they intend to take legal action then watch out. they are within days or weeks of garnishing your bank and/or your employer. When they do, 100% of ALL your bank accounts will be frozen and typically 25% of each paycheck will be gone.
We knew of one gentleman who had been warned by CRA for many weeks that if he didn't pay they would take legal action. Because he felt he was in the right about a Notice of Objection issue his defense was to argue with Collections. One day he checked his account and $106K was out of his savings, never to be returned.
Remember it's legal to avoid paying one's creditors. If you are on board with that then read on.
Just simply for now... according to tax professionals and lawyer Tony Merchant, don't leave your bank accounts exposed.
1) They can't take what isn't there. Get the funds the H_LL out. Perhaps leave a few bucks to throw CRA off the trail but the bulk should be moved to a different bank. The new bank account should be non-interest bearing so you don't have to provide your SIN #
2) Anything in your personal name is exposed. CRA cannot garnish joint accounts.
3) If your employment income is direct deposited into an exposed account then realistically it can be 100% garnished vs 25% through the employer.
4) Highly suggest you read chapter 10 in the Tax Collector's Bible in your Tax Collections member page
That's about it for this week. Any thoughts or concerns let us know.
Randy Shoeman - cell (306) 501-2613; firstname.lastname@example.org
Reno Giambattista - cell (306) 737-7476; email@example.com