Comments on: More on the Smith Manoeuver by Bob Aaron, quotes Dan in Tor Star http://blog.danwhite.ca/2008/03/19/more-on-the-smith-manoeuver-by-bob-aaron-quotes-dan-in-tor-star/ Dan White's Personal Web Site where he provides information on tax topics in Canada. Sat, 19 May 2012 19:00:46 +0000 http://wordpress.org/?v=2.2.1 By: Comment for Blog http://blog.danwhite.ca/2008/03/19/more-on-the-smith-manoeuver-by-bob-aaron-quotes-dan-in-tor-star/#comment-9931 Comment for Blog Fri, 04 Jul 2008 17:04:05 +0000 http://blog.danwhite.ca/2008/03/19/more-on-the-smith-manoeuver-by-bob-aaron-quotes-dan-in-tor-star/#comment-9931 Dan's response. This case is old hat and I am very familiar with it. It does not contradict my postion. If your mind is made up, that is ok. I just wish to let people know that CRA sees this from the same view that I do. Dan <p>The Supreme Court Case has already been made:</p> <p>http://csc.lexum.umontreal.ca/en/2001/2001scc61/2001scc61.html</p> Dan’s response. This case is old hat and I am very familiar with it. It does not contradict my postion.
If your mind is made up, that is ok. I just wish to let people know that CRA sees this from the same view that I do.
Dan

The Supreme Court Case has already been made:

http://csc.lexum.umontreal.ca/en/2001/2001scc61/2001scc61.html

]]> By: Comment for Blog http://blog.danwhite.ca/2008/03/19/more-on-the-smith-manoeuver-by-bob-aaron-quotes-dan-in-tor-star/#comment-9930 Comment for Blog Fri, 04 Jul 2008 17:01:23 +0000 http://blog.danwhite.ca/2008/03/19/more-on-the-smith-manoeuver-by-bob-aaron-quotes-dan-in-tor-star/#comment-9930 Dan's Comment. I did not say that loan interest on investments is not tax deductible. It is deductible subject to certain conditions. I agree with what you are saying about being careful as to what you invest borrowed capital on. It should be risk free. As aforementioned, you are free to believe what you want. I don't need to be right. CRA likes the deal... lots of penalties and interest for them to collect. The financial advisers and planners who have been promoting this scheme, should check out joint and several liabilities to CRA. Dan <p>Ah, but there are flaws in your argument too. Use the loan to buy something that produces income, and the loan interest IS tax deductible.</p> <p>Also, don't be stupid and buy public stocks with the loan, which are subject to market fluctuations. Buy private equity with a flavour of profit sharing.</p> <p>You are quick to criticize something that has also had it's day in the SCC. Google John Singleton, a lawyer from Vancouver that won this argument you claim as risky.</p> Dan’s Comment.
I did not say that loan interest on investments is not tax deductible. It is deductible subject to certain conditions.
I agree with what you are saying about being careful as to what you invest borrowed capital on. It should be risk free.
As aforementioned, you are free to believe what you want. I don’t need to be right.
CRA likes the deal… lots of penalties and interest for them to collect.
The financial advisers and planners who have been promoting this scheme, should check out joint and several liabilities to CRA.
Dan

Ah, but there are flaws in your argument too. Use the loan to buy something that produces income, and the loan interest IS tax deductible.

Also, don’t be stupid and buy public stocks with the loan, which are subject to market fluctuations. Buy private equity with a flavour of profit sharing.

You are quick to criticize something that has also had it’s day in the SCC. Google John Singleton, a lawyer from Vancouver that won this argument you claim as risky.

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