Tax Protesters - Questions and Answers

Q1.  What is a tax protester?

A1. Tax protesters are individuals who support the false notion that they do not have to pay tax on the income they earn, by using a combination of legal and other arguments to place themselves outside of the tax system.

One of the most common arguments tax protesters use is the natural/legal person argument.

Q2. What is a natural person and what is a legal person?

A2.  Tax protesters treat themselves as two people for income tax purposes. They define the natural person as the individual that performs the labour required to earn income, and the legal person as the legal entity that the federal government creates through the issuing of a social insurance number (SIN). Tax protesters allege that the legal person has to file an income tax and benefit return, and that income received as a natural person is not subject to Canadian income tax.

Canadian courts have consistently rejected the natural-person arguments often used by tax protesters in order to avoid paying taxes.

Q3.  Who is involved in the tax protester movement?

A3.  People from all demographics are involved in the tax protester movement.

Q4. What are some of the common false arguments of tax protesters?

A4. Tax protesters make the following false arguments.

Q5.  What is the CRA doing to fight the tax protester movement?

A5. The CRA is always on the lookout for tax schemes, such as the tax protester movement. It will reassess the income tax and benefit returns of the individuals involved in such schemes. In some cases the CRA will act to have individuals prosecuted for tax evasion. The CRA targets and deals with the people who promote tax schemes.

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