Taxpayers Beware of Illegal “Natural Person” Schemes

By News Canada


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You may have heard some individuals claim that the government doesn't really have the right to collect taxes from its citizens. They argue that, for income tax purposes, each one of us is, in fact, two people: the natural person, or the individual that performs the labour required to earn income; and the legal person, the legal entity that the federal government creates by issuing a social insurance number (SIN). And, according to them, income received as a natural person is not subject to Canadian income tax.

It's an intriguing story. Often, it will be accompanied by an invitation to an information session where you can learn more. Once you get there, other services may be promoted, including seminars, consulting services, and additional products to help you apply the "natural person" theory to your personal tax situation. All very tempting.

Don't fall for it, says the Canada Revenue Agency (CRA). There is no such thing as a natural person. People who promote this theory are known as tax protestors, and they are selling a scheme to evade taxes that every responsible taxpayer should walk away from.

Facts:

1. It's against the law. The courts have totally rejected the natural person vs. legal person argument, and 100% of cases brought before the courts have resulted in convictions for tax evasion, counselling others to evade taxes, or both.

2. It's costly. When taxpayers are convicted of income tax evasion, they must repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the CRA. In addition, the court may fine them up to 200% of the taxes evaded and impose a jail term of up to five years.

3. It's a con. Tax protesters who promote illegal tax schemes are lining their own pockets at the expense of the taxpayers they target, as well as all taxpayers who pay their fair share.

Think twice. If it sounds too good to be true, it probably is. Always seek independent advice from a reputable tax professional or contact the CRA if you have doubts about certain tax arrangements.

www.newscanada.com

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Comments

Showing 1 to 6 of 6 comments.

natural person and the citizen are in two different jurisdictions if your a citizen you must pay tax but if your disenfranchised from the government then yo do not pay tax. we were all franchised at birth through the registration of a live birth because your parents had to register you all because the vital staticices act makes you its law WHICH IS SLAVERY. there violating #4 and #20.2 of the declaration of human rights. natural persons are free they are disenfranchised. soon i will have a program up on this on freedom and rights news review channel ,you tube this month I CAN SHOW PROVE

Posted by grant | January 11, 2016 Report Violation

@ Bob, a person will lose most arguments (complaints) with CRA in their court or in any other statute/legal based court based on CRA position as sovereign in the court (using legal/illegal). Their court will interpret as the sovereign (CRA) says. A man will win their claim (verifiable and honorable) when they stand in common law and prosecute their own claim in court (using lawful/unlawful). Keep in mind that a man is not a man in their court and that a proper claim under common law trumps a proper complaint in their law. You can lose an argument in their court and trump with a proper claim in your court.

Posted by Marc | June 20, 2015 Report Violation

I cannot understand WHY, when you want an answer to the question regarding the natural person you go to the "agency" which dictates the paying of taxes to you by saying you must pay them. This agency gets dictated to as well by higher powers who say what the agency does and what the agency will tell you. There is substance to this natural person installment, beyond belief. Just look at valid government documents which come in the mail sometimes. Or have you NOT done your investigative work ? I have decided to post this as it occurs to me that this magazine is responsible to a lot of poor, struggling seniors WHO rely on good publications to provide them with accurate, correct factual knowledge and facts. You are NOT provide correct knowledgeable facts to these people… Could you please get it right? Do some investigative work... Regards.

Posted by David Scrivens | May 17, 2015 Report Violation

There are many different legal words, that don´t mean, or don´t apply to every situation, that depends how dumb the person is to believe that every single Act, Statue, Norm, or "Law" is applied to him or her. First of all, a State/Municipality, etc... is a Corporation (from latin "corpus", death body, and a death body can be used as a corporation, or legal person). In addition a man with an ID with Capital Letters, is not its name in full extend of the law, ir comes from Capitis Diminutio Maxima, which means that your name with capital letters doesn't have any rights, because it is a death body or a slave, so that is why all the names in the graves are in capital letters, and this is called a Strawman (a fake person, or else a death body, or legal fiction=such a company or corporation, are also legal fictions which means that only exist legally, but not physically). In addition a corporation can only issue Norms or Statutes, and Laws, but by consent of every single citizen. In addition a Citizen is a person who works for the government by paying taxes for every single economical movement that he/she does. Another thing that people might not forget is that laws have hierarchies, that means that a superior law overrule inferior laws, so in front of a contradiction, the superior laws, is the winner, it doesn´t matter what the government worker tells you.

Posted by John | January 4, 2015 Report Violation

If you believe that, why has CRA won every case so far? Maybe you should be reading the law books!

Posted by bob | August 28, 2013 Report Violation

For one, there is such a thing as a "natural person" from the Excise tax act "“individual” “individual” means a natural person; So clearly the CRA is lying. A natural person is an individual such as a sole proprietor as appose to a partnership. The government has defined an individual as a natural person is many of its laws. The Canadian income tax act "“person” « personne » “person”, or any word or expression descriptive of a person, includes any corporation, and any entity exempt, because of subsection 149(1), from tax under Part I on all or part of the entity’s taxable income and the heirs, executors, liquidators of a succession, administrators or other legal representatives of such a person, according to the law of that part of Canada to which the context extends; As you can see even corporations are "persons" The Canadian income tax act also states that "An income tax shall be paid, as required by this Act, on the taxable income for each taxation year of every person resident in Canada at any time in the year". So one must have taxable income be a person, and resident in Canada in order to be liable for tax. Basically if you are not registered(incorporated) under the income tax act, then you are not a taxpayer! There is a reason why we all have "legal names" Everyone needs to pick up a law book!

Posted by Jason | June 1, 2013 Report Violation

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