Opinion
Taxpayers DO have the right to remain silent
A taxpayer-friendly unanimous Federal Court of Appeal ruling came out this week in MNR v Cameco [2019 FCA 67]. At issue was whether or not the Minister (through the CRA) has the authority to compel oral answers to oral questions from taxpayers or their employees.
In his ruling, Justice of Appeal Rennie stated “…the Minister does not have the power to compel a taxpayer to answer questions at the audit stage…”, however, it may be in the best interest of the taxpayer to provide reasonable answers to reasonable questions in order to expedite the process. The full entire ruling can be found and read here
This ruling simply re-confirms, that even in an audit, you (and your staff) have the right to remain silent, and that the Minister’s powers are limited to physical evidence.
An exception to this is you are required to provide assistance in locating and providing that physical evidence, which may need to be orally.
Personally, when dealing with a very large number of taxpayers on our own office, we want to be certain that the file that the CRA is talking about is the same file in front of us. As such, we are a firm believer in the Canadian Home Builders’ Association motto that is ironically supported by the Government of Canada: “Get it in Writing.”
I am not advocating answering no questions, as the Minister (CRA) still has the ability to issue reassessments, thereby shifting burden of proof to the taxpayer further to disprove the reassessment.
I am, however, advocating at a minimum to get those questions detailed, and in writing. This will help to provide clarity and allow for proper thought in your answers as opposed to stating something with unintended consequences.
Here is a little example of what happens when you don’t get it in writing: in my dark-side days as a field auditor with the (then called) CCRA, we used to ask prying questions that the taxpayer had no idea they were answering.
For example, in one particular circumstance I was reviewing a file where it was suggested that the taxpayer was doing under-the-table cash jobs. This meant I would have to be creative in figuring out the taxpayer’s cost of living, and ruling out other sources of income.
Meeting in a quiet restaurant in a small Saskatchewan town, I was eventually able to have the taxpayer relaxed enough to think that we were having a normal conversation. Just a couple of ‘Riders fans that aren’t a fan of Ottawa, but hey, I have a job to do. When the taxpayer started complaining about the government, I joined in:
“Hey, I hear you. I’m not some suit from Ottawa. I’m from Regina. I mean both the feds and the province already get enough out of me from tax on my smokes.”
I don’t smoke.
The taxpayer didn’t know that, but the anger was timely because the province had just raised up the cigarette tax the previous year so packs were well over $6 a pack.
“Yeah I know”, the taxpayer said, “I smoke a pack a day”.
Music to my ears as a tax auditor, the taxpayer just told me that they need ($6 x 365) = $2,190 of after-tax income just to feed their cigarette habit.
I continued, “That’s terrible! Between getting our money on that, and getting it at the casino, it’s just crazy how much they make it hard to enjoy our weekends.”
“Yeah, I don’t win nuthin’ at the casino either,” the taxpayer stated.
To me I heard ‘I didn’t have any non-taxable casino winnings. In fact, the taxpayer likely had lost money in the year. This means the taxpayer needed to have more disposable income to gamble.’
The conversation continued for a good 30 minutes. Once I was armed with more knowledge of the taxpayer’s lifestyle and spending habits, I went to work. Bank statements, receipts, mileage information, fuel costs, type of vehicle, etc.
We would use information tools not only from Statistics Canada for price of fuel in different regions, we would also use websites like www.fueleconomy.gov that provide different estimated fuel consumption based on type of use and mileage going back to cars from the 1980s. Then we work backwards to see if the numbers made sense with respect to the taxpayer’s vehicle and costs.
When it was all said and done, I used the results of our conversation against the taxpayer. When I was finished, I found over $30,000 in an income variance between the taxpayer’s living costs and change in net worth compared to what was reported. Not only that, but the taxpayer had already backed themselves into a corner because of the questions that were answered which I had documented.
My guess is that in conclusion, the taxpayer thought they should have got the questions in writing instead of meeting me at a restaurant.
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Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr is the President & Founder of CGL Strategic Business & Tax Advisors; you can find out more about Cory’s biography at http://www.CGLtax.ca/Litzenberger-Cory.html
Only recently have foreign players been allowed to break sacred baseball records
In 1985, American baseball player Randy Bass was one run away from Sadaharu Oh’s single season record.
On the last game of the season he came up against the team managed by Oh. He was intentionally walked 4 times, and Oh maintained the record.
The truth is, for decades, foreign players were not allowed to break the sacred record held by Oh.
What Shohei Ohtani is doing today, for the Los Angeles Dodgers, would never have been allowed in Japan by a foreigner.
While cultural attitudes have shifted and foreign players have now broken some major records, there are still roster limits on the number of foreign players who can be on the active roster for a single game. Only four can be on the roster at any one time, although the team can sign as many as they want.
In 2001, American player Rhodes tied the single-season home run record of 55, but opposing pitchers consistently walked him instead of pitching to him.
Alex Cabrera, another American player, would later tie the record in 2002, and the controversy surrounding Oh’s management became a topic of heated discussion in the Japanese media.
All three players were deliberately sabotaged. Something that would never happen in Major League Baseball.
MLB would have its own shame, of course, by not allowing black baseball players into the league until 1947.
Jackie Robinson was the first African American player in MLB’s modern era, debuting on April 15, 1947, for the Brooklyn Dodgers.
Robinson experienced significant racism throughout his life, both before and during his baseball career.
He faced racial hostility from neighbors, discriminatory treatment in the military, and constant racial abuse, slurs, and physical attacks from opposing players and fans once he broke the colour barrier in the MLB.
Oh’s vaunted record would finally be allowed to fall in 2013, when Dutch baseball player Wladimir Balentien hit his 56th and 57th home runs to surpass Oh‘s previous mark of 55.
Balentien finished the season with 60 home runs, a record that remains in Nippon Professional Baseball (NPB) history.
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Ohtani plays peacemaker in front of the Padres dugout. Handout
Ohtani not only signed one of the biggest free-agent contracts in history — a 10-year, US $700 million deal with the Dodgers — recently he put on a historic show which stunned the sports world.
During Game 4 of the NLCS against Milwaukee Brewers, on the mound he fired 10 strikeouts over six complete innings, and slammed three home runs — one completely out of the park!
Dodgers teammate Freddie Freeman stared in disbelief with his hands atop his head as he watched the ball sail over the roof of the Right Field Pavilion and clear out of Dodger Stadium.
“Shohei, oh my God,” Freeman said on TBS after the game. “I’m still speechless.”
Ohtani became the seventh player to hit a home run out of Dodger Stadium, and just the second Dodgers player to do so, joining Mike Piazza (Sept. 21, 1997).
It also made the humble megastar the first pitcher in MLB history to hit a leadoff home run in either the regular season or the postseason, and the first home run by any Dodgers pitcher in postseason history.
The 5-1 pennant clinching victory would propel the Dodgers into the World Series, to face the Toronto Blue Jays.
There’s no question, he may be the greatest player who ever played the game.
Only Juan Soto signed to a bigger free agent contract, agreeing agreeing to a 15-year, $765 million deal with the New York Mets prior to the 2025 season.
Soto leads in career batting average and on-base percentage and has generated more runs, but he lacks Ohtani’s two-way dominance — the only player in modern baseball history to be a Cy Young-level pitcher while also being an elite hitter.
He is also a player whose otherworldly talents belie an impossibly down-to-earth persona.
The star two-way player played peacemaker this past season after he stopped his Dodgers teammates from hopping over the dugout railing and having a bench-clearing confrontation (again) with the San Diego Padres.
The drama occurred after Ohtani was hit by a pitch in what looked like a retaliatory move after Padres star Fernanto Tatis Jr. was drilled earlier in the inning, leading to the initial drama and both managers being ejected.
A quick thinking Ohtani immediately waved off the Dodger cavalry.
If that wasn’t enough, Shohei then went and spoke with the Padres dugout.
“He’s going over to the Padres dugout and he’s talking to them. And I guarantee you’re the Padres and you’re sitting there saying, ‘Oh, our bad, one of the Dodger television commentators said. “Those that watch this will talk about this for a long time when you try to explain how different Shohei Ohtani is.”
Meanwhile, what do foreign baseball players face in Japan?
- Housing and bureaucracy:It can be difficult to find housing, as some landlords are reluctant to rent to non-Japanese, and navigating bureaucracy can be complicated.
- Workplace culture:Some foreigners report experiencing intense competition at work, long hours, and strict workplace hierarchies.
- Cultural isolation:Some players report feeling like they are perpetually “othered,” or “gaijin” (foreigner), and may struggle with cultural differences and a sense of distance from both their home country and Japanese society. Players’ wives, also experience this sense of distance, and lacking interaction can suffer greatly from it. Engaging in social media, however, has helped in this regard.
- Prejudice and discrimination:Some individuals experience isolated incidents of prejudice, ignorance, or discrimination, such as being unfairly accused of wrongdoing.
- Intense training and schedules:Workloads and schedules can be demanding. For example, one player noted working in the mornings and then practicing from 1 p.m. to 7 p.m., with optional practice afterward. Full on game day practices are also mandatory. And if you are slated to play, you will play, regardless of any social events, including family funerals.
Makoto “Mac” Honda, an outfielder who played for the Chunichi Dragons, chose to play in the next scheduled game after his father’s death — an emotional moment in Japanese baseball history.
His story is a key part of the narrative in You Gotta Have Wa by Robert Whiting, a well-known book about Japanese baseball culture.
Contrary to the negatives, players report a high quality of life with low crime and good food. Japanese people are often polite and welcoming, especially toward tourists.
Some people are genuinely interested in learning about other cultures and may be very welcoming and inclusive of foreigners.
The presence of foreign players is also seen as beneficial for the development of sports in Japan, and many teams are embracing the modern world through foreign coaches and players.
In other words, it is changing.
To quote Seattle Mariners legend Ichiro Suzuki:
“The more that Japanese players go to the big leagues to play and succeed, the more that will serve to inspire young kids in Japan to want to become baseball players when they grow up.”
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A months-long RCMP investigation has led to the takedown of a massive synthetic-drug operation resembling the “super labs” often found in British Columbia — but this one was discovered just forty-five minutes north of Toronto. Officers uncovered an industrial-scale facility capable of producing millions of dollars’ worth of fentanyl, methamphetamine, MDMA, and GHB.
The RCMP’s Ontario Federal Policing unit announced Friday that search warrants executed on September 7 in Schomberg, northwest of Toronto, resulted in the seizure of nearly $10 million in suspected controlled substances, along with prohibited weapons, chemical precursors, and a range of illegal production equipment.
In addition to cash, drugs, and chemicals, officers discovered a pill press, firearms, handwritten drug “recipes,” flasks, chemical glassware, and other lab components. Approximately 20,000 litres of hazardous waste were also removed from the site.
Investigators say the probe began in spring 2025, when officers detected a suspicious bulk-chemical order placed by Christopher O’Quinn, operating under the business name O’Quinn Industries. “The chemicals ordered are known to police to be used in the production of fentanyl, MDMA, methamphetamine, and for cannabis extraction,” the RCMP said.
After weeks of surveillance, RCMP officers uncovered what they describe as a large-scale clandestine lab hidden on a Schomberg property. Dismantling the facility required coordination with the Ontario Fire Marshal, Health Canada, and municipal emergency services — a hazardous-materials operation that lasted ten days.
Three suspects — O’Quinn, Liang Xiong Guo, and Katie King — were arrested and face a combined 33 criminal charges.
O’Quinn faces 20 offences, including production and trafficking of Schedule I substances, possession of precursor chemicals, and multiple weapons violations involving a bullpup-style shotgun and a .22-calibre rifle.
Guo faces nine counts linked to the production and trafficking of methamphetamine and MDMA.
King faces four counts related to meth trafficking and illegal firearm possession.
RCMP officials said additional substances are undergoing Health Canada testing to determine whether synthetic opioids such as fentanyl were present.
Authorities also seized $8,000 in cash, multiple firearms, laboratory glassware, and chemicals capable of producing further drug batches valued in the millions.
“The complexity and danger of the operation required extensive inter-agency collaboration,” the RCMP said, thanking partners including the Ontario Provincial Police, Niagara Regional Police, York Regional Police, South Simcoe Police, the Ontario Fire Marshal, Health Canada, the Ministry of the Environment, and the Canada Border Services Agency.
Health Canada testing and court proceedings are ongoing.
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