The Canadian Corporate Bum
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By Sweets
I guess with my past experience I can speak with some authority on the so called corporate bum. In the past I have been the creator of 3 privately held limited Corporations and 1 widely held publicly owned Corporation. – The simple difference between these two types of corporations is, the Public Company’s letters patent allows the Corporation to sell shares to the public’
Provincial incorporated laws of limited corporations are stringent. Either you take the profit as wages or dividends and pay the same rate of tax as any other Canadian – or you leave the profit in the Corporation and pay the corporate tax – it was 25% when I was active – there was no ifs ands or buts, no legal loop holes. That’s if you had an honest auditor; you paid more than your fair share of tax to society. This type of limited Corporation does not fall under the Category as bums.
The problem; where the skullduggery begins is when a Corporation starts expanding, buying up other corporation forming subsidiaries. This is where the loopholes start showing their ugly face. Then they incorporate a sub in the nearly tax-free haven like the Bahamas in order to drain off the profits of the Mother Corporation. Canadian Corporations with US subsidiaries or visa versa has another way of whipping the profit back and forth depending on their physical structure and year-end. The more subsidiaries they own, all the better to fool the tax collector – Our Gov. does not seem to have the inclination or the hired expertise to police these crooked bastards – for obvious reasons, — now they have a sole mate as prime Minister.
The Tax avoidance can not take place without the assistance of unscrupulous lawyers and chartered accountants, lets not forget the Banksters and a willing Liberal Government. These are the weasels who council the willing CEO and boards of directors of the conglomerate. The larger they become the more powerful and legally crooked they become. The Ne plus Ultra is to buy your own country like Shell’s head office in Liechtenstein, –All at the expense of the blind tax payers. A small office in Switzerland is a must for the large conglomerate.
So painting a picture of the Corporate bum, the auditors, lawyers, banksters should be sitting in the front row center, the president, vice presidents, directors and treasurer, all smiling in the back row.
I wont venture into the realm of the widely held Public companies incorporated under the laws of Canada– who through an underwriter, a well written prospectus and then the dark halls of the Bay St Broker peddle the common shares to a naive public – I’ll leave that story for another day.
All by the Sweet one.
@ February 23, 2004