Taxpayer takes Taxman (and woman) to Court

Tue, February 12, 2008

Taxpayer takes taxman to court

By: KEVIN CRUSH, SUN MEDIA

Tired of paying so-called hidden taxes, a Toronto mortgage specialist is taking the feds to court.
Joel Kelman says he was looking at his gas receipt one day and just got fed up with the taxes the government apparently doesn't want to tell people about.
So after taking the case to his father's law firm, he has filed a case with the Tax Court of Canada against the federal government claiming the GST on gas, air fare, liquor and cars is illegal.

RIGHT TO KNOW

"The consumer has a right to know what they are paying taxes on."

Kelman said many people know that the GST is being charged on their gas and some even know that there are hidden taxes behind the price that the GST is also being tacked on to.

Taxing taxes isn't necessarily illegal, he admits, but what he says is illegal is the government not telling consumers how the tax breaks down.

"It's not taxing taxes that's the problem, it's that they are taxing unidentifiable taxes," said Kelman.

It's definitely an interesting case, says the Alberta director of the Canadian Taxpayers Federation (CTF).

"From a moral standpoint, we certainly agree that governments should be forthright and disclose to their citizens what they are taxing and at what rate," said Scott Hennig, who noted the CTF isn't involved in the case.

Taking fuel, for example, Hennig noted there are two excise taxes on gasoline that never show up on the bill - a 10-cents-per-litre tax for Ottawa and a nine-cent-per- litre tax for Alberta (which has the lowest excise tax in Canada).

The GST is calculated after the two excise taxes are put in, so in essence the GST is taxing the tax. None of that is displayed on the bill, which Hennig says is immoral. "Certainly we feel it is wrong to collect a tax in the first part and not tell anyone about it."

LOTS OF HITS

Ever since Kelman went public with his story last week, he says it is getting attention from the public. He has had 1,300 hits on his website - taxontax.ca - so far. Twelve of those have come from the Canada Revenue Agency - proof, he says, that he's ruffling feathers.

He says people can sign up online to join his case, for a $10 fee. If the case is successful, those signing up could get a tax refund of $1,500 or more depending on how much liquor, air fare, gas and cars a person has bought.

Kelman said he's been told that could take four years.

Superhero takes taxing case to court

By: BRYN WEESE, SUN MEDIA

Thu 7th Feb 2008

Joel Kelman is not your typical superhero. In fact, he's just a mortgage specialist who is tired of being allegedly ripped off by the feds.

Now this self-professed "average Joe," with the help of his father's law firm and other financial experts, has filed a case with the Tax Court of Canada against the Federal government claiming the GST on gas, airfare, liquor and cars is illegal.

While taxing taxes isn't illegal, Kelman said -- adding that's exactly what happens when you fill up your tank, buy a bottle of wine, buy or lease a car or fly somewhere -- it is illegal not to disclose what you're taxing.

"The consumer has a right to know what we're paying taxes on ... you can't just say 'whatever is there, we'll charge a tax on it,' " he said. "The federal boys must tell you what's there, and they can't because they can't control the province.

'DRAWING BOARD'

"They have to go back to the drawing board. They have to rewrite the law."

Kelman's case, though not a class action suit, could benefit almost every Canadian if it's successful, but since it was only filed a few weeks ago, it could be four years or more before a decision is reached.

If the case is successful, everyone who signs up with Joel, for a $10 fee, could receive a tax refund of $1,500 or more, depending on how much liquor, airfare, gas and cars an individual bought for the past two years as well as during the years it will take to see the case through the courts.