1. Mulroney took $225,000 in cash, taxable fees, but did not pay GST nor Quebec PST because he said he worked for a foreign entity. You cannot just "say" you worked for someone offshore to avoid charging sales taxes so Mr. Mulroney must produce an invoice or proof from his offshore client, in this case allegedly Thyssen, that he was paid $225,000 for services rendered.
If he cannot prove that Thyssen was his client he owes nearly 14% GST (because Schreiber lived in Quebec at the time) plus penalties and interest for earning fees from a Quebecer. If he cannot prove that Thyssen was his client then he was paid off for some other purpose, or for some unknown entity inside or outside Canada, by Schreiber.
2. Mr. Mulroney admitted he did not declare the $225,000 as income for tax purposes either for six years. What penalties and interest did Revenue Canada charge him? We would like to see the notice of assessment. Or did he get special treatment?
3. Mr. Mulroney said he did not have to declare the $225,000 as income because the fees all went toward expenses. Let's see all the receipts to back up this statement? And if this was true why would he declare income that was not income? Let's see the letters written to Revenue Canada to explain all this.
Monday, January 14, 2008
Does He Owe GST?
Diane Francis details what we need to know to sort out whether Mulroney owes GST and income tax penalties on the cash he got from Schreiber: