canada taxes

7/29/2019 Canada Taxes

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Canada's Federal Income Tax isunconstitutional

The constitution gives the Federal Government the right to issue its own

currency

Here are excerpts from a paper that was delivered in October, 1991, by Mr.

Murray Gauvreau, of Alberta, at a seminar of the Canadian League of Rights, inCalgary, which was published in the July, 1992 issue of "The Canadian

Intelligence Service" (55 - 8th Ave. S.E., High River , Alberta T1V 1E8):

by Murray Gauvreau_____________

________

I would like to talk with you today about money, interest, debt, and taxation.Thank you for your interest and for coming to hear me speak. I'm sure that all ofyou are interested in Imcome Tax, and the GST. I will no doubt give you someenlightening facts. In order to fully understand the problem that we face today inCanada, we will briefly discuss some important aspects of our history.

In addition, I will try to give you an understanding of how the many taxes we nowpay have come about. I will also propose some solutions to our dilemma. Butplease keep this in mind: our problem is perceived to be vast and complex, and itis intended by those in power that you feel exactly that way, so that you will feelhelpless to do anything about it. But after today you will know for certain that ourproblem is not complex at all, and neither is its solution.

1867 - the B.N.A. Act

As a result of having taken advantage of the many career advancement coursesoffered by the life insurance industry, I became aware that the banks haveexclusive right to issue currency in Canada, as determined by the Federal BankAct. But I didn't see them printing money, so I decided to find out exactly howthey do issue currency. My search led me back into the early history of our nation,and into the history of our Province...


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So let's go back a ways, to the year 1867, and look into the pages of the CanadianConstitution, commonly known as the British North America (B.N.A.) Act.Therein lies the real solution to the ailments, both social and economic, that ourcountry suffers from today. It is the same document today that it was when it waswritten so long ago.

The B.N.A. Act was written in order to establish the legal basis for this country.All laws enacted in Canada, whether by municipal, provincial, or federalgovernment, must comply with the terms of the B.N.A. Act. If they do not, theyare then unconstitutional, or in legal terms "ultra vires," and can be disallowed aslaw. The document belongs to the people of Canada, and not to theparliamentarians or the courts, or to the Prime Minister and the Premiers... Itbelongs to the people.

The Canadian Constitution was not changed or altered when it was brought homeby Mr. Trudeau, as some suggest. However, there was a very important addition

made to it at that time. That addition was the Canadian Bill of Human Rights.Today the Canadian Constitution, as we know it, is comprised of the originalB.N.A. Act, and the Human Rights Act, together...

Direct taxation belongs to provinces

There are two specific sections of the B.N.A. Act that deal with the delegation ofauthority between the Federal and Provincial Governments. Sections 91 and 92deal with authority for various types of taxation, who has authority to levy whichtaxes, and various other areas of jurisdiction.

The Act is very specific in its direction. The right to tax income, known as"direct" tax, was delegated to the provinces; and it was clearly indicated that

any monies so raised must be raised provincially, and used for provincial

purposes. The Federal Government was denied the right to levy income tax.

But the Supreme Court of Canada goes further. It states that no level orgovernment is allowed to transfer its authority to another level of government,and if transfer were attempted by one level, it could not legally be accepted byanother.

On October 3, 1950, the Supreme Court of Canada handed down a decision

in the case involving the Lord Nelson Hotel of Halifax, Nova Scotia, againstthe Attorneys-General of Nova Scotia and Canada. The case involved the

transfer of powers from the Provincial to the Federal Government, and was

directly related to the income Tax Act. In a seven-judge unanimous decision,

the highest court in our land ruled that power transfers cannot legally take

place. The Federal Government was given until 1962 to remove itself from all

such power-transfer agreements, including the Income tax business, and

scrap the Income Tax Act...


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Clearly, the Federal Government has no constitutional right to engage in theIncome Tax business, or any other type of direct taxation, whether on behalf ofitself or on behalf of the provinces. Therefore, the Income Tax Act is, in itself,unconstitutional, and need not to be obeyed...

The Federal Government can create its own currency

It is interesting to note that the same sections of the B.N.A. Act that disallow

the Federal Government the right to collect income tax, did however provide

for a means whereby the Federal Government could raise capital. Sectons 91

(14, 15,16, 28, 29, and 20) give the Federal Government the authority, and

the responsibility, for the control and issue of our currency, based upon the

resources and wealth of the nation. They were given an unlimited supply of

debt-free money with which to operate the contry. All they had to do was

print it. And they did just that for the first 46 years of our country.

Government gives banks credit monopoly

Then, some 46 years after Confederation, in 1913, our parliamentarians werepoorly advised in committing a grave injustice to future generations of Canadiansby passing an amendment to the B.N.A. Act (without referendum!) commonlyknown as the Bank Act. By this act, the Federal Government gave to the bankingsystem the sole right to create the financial credit (in reality, the "money") of ournation. And for the last 79 years, the private banking system has been exercisingthis monopolistic prerogative of creating and controlling the Canadian people'sfinancial credit.

Well, banks don't work for free... they charge "interest." They even charge interestto the Government. And interest can never be repaid; it just keeps adding up, andup, and up, until today our national debt alone is approaching $600 billion.

Shipwrecked on an island

(Editor's note: At this point of his speech, Mr. Gauvreau explains in detail thesame story related by Louis Even in "The Money Myth Exploded," formerly called

"Salvation Islan":)

Let's assume that those of us here this afternoon are shipwreck survivors, and that

we are stranded on a deserted island. Our only means of survival are to help eachother by each doing those things that are necessary for the betterment of our newcommunity, until we can be rescued. One of us becomes a farmer, one afisherman, one a carpenter, and so on.

Each of us has his own role to play for the survival of the community. No one hasany money, and at least for the time being, there is no need for money, All arecontributing equally, and all are on the same economic level. We are satisfactorily


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exchanging our goods and services by barter. But gradually, as the communityevolves, it becomes apparent that money will be necessary. Bob already has ahouse, and the carpenter doesn't need another hundred pounds of fish. But we doneed to associate, cooperate, and continue to contribute to the community. Thereneeds to be an acceptable and equitable means of exchanging our goods and

services...

Then one day, as the community is sitting on the beach, talking about theirproblem, we notice another raft approaching the island. All are happy to see a newface, and we greet the new arrival warmly. As we continue to talk, someone in thecommunity tells the vew arrival about our dilemma, about how we started thecommunity, developed it, built it through cooperation, and advanced to the pointwhere we now need some form of exchange to help make the community growand flourish. The new arrival's eyes light up. "I have the answer to yourproblem," says the new arrival. "I'm a banker. I'll set to work right now to printyou some money."

The next morning, the whole community meets in front of the banker's newhouse. As the banker distributes the money, he reminds us that the money belongto him, and that we do not "own" it, but that we can only "borrow" it, and that wemust pay a small fee for the privilege of borriwing it. We can pay that at the endof the year. And he requests that each person sign the agreement to pay 5%,which is certainly not excessive interest.

The debt cannot be paid back

The first year goes by. The community functions and prospers during the year;

then at the end of the year we return to the banker, to pay him back what we hadborrowed. But we find, to our dismay, that we cannot repay the loan, because wedo not have enough money. We find that we now owe all that we had borrowed,plus 5%, which is the interest. The $1,000 that we had borrowed has now become$1,050. Since there is obviously no way to pay back the $50, which is the interest,the banker suggests that we leave the loan on the books as a $1,000, leaving alesser amount of $950 for each of us to operate on for the next year. Seeing noother real answer, the community agrees to the new terms, and attempts to operatewith less money for another year.

At the end of the second year, the community faces a similar, but greater,

problem. In buying down the loan, we find that our operating capital has nowbeen cut by 10%, to $900. We realize that if the plan is allowed to continue, thebanker will own the island, in its entirety, having contributed nothing but thepaper and ink (bookkeeping) that was used to monetize the community's realcredit in the first place. Some of the islanders protest.

But the banker has now had a couple of years to prepare for this day. To counterthe objection that is inevitable, he has taken evasive steps. He has used the time to


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develop credibility in the community to educate us as to how valuable his serviceis, and what a fine contribution he has made to the community. He establishedcolleges and universities majoring in economics, and teaches our children and oureducators all about his money system. He ensures that few, if any, in thecommunity are aware that there is another way; and he encourages the community

to discount as ridiculous any suggestion that there could be a better way to financea community...

The solution: Social Credit

Then one day, one of the islanders decides to take a walk along the beach anddeliberate upon what has happened to the community. As he strolls along, headdown, thinking, he notices what appears to be the corner of a book sticking outfrom the sand. He kneels, and picks up the book and brushes it off. The title,though tarnished from time, wind, and tide, is still readable - "The Meaning ofSocial Credit." The islanders had never heard of this before, but he has not had a

book to read for a long time, so he sits down on the beach to read it. A nd as hereads, he becomes more and more interested and excited. He realizes that thisbook holds the real answers to his island's financial problem. The book describeshow a community can function very well by simply creating a Balance Sheet, asystem of debits and credits...

He runs back to relate the exiting news of his discovery to the rest of thecommunity. As he gathers the islanders to discuss his find, the banker watcheswith concern. Is his jug up? Has he been found out? Is the community finallyready to take back its property, and reconstruct it, and once again have prosperityand cooperation?

Friends, only you can answer these questions, because the island I talk about isyour country, and the community I refer to is all of us.

The story paints a rather dismal picture of the banking system in our country.Please understand, the average bank manager, teller or loans officer, hasabsolutely no knowledge of what you have just learned. They are merely pawns ina much larger game. But rest assured, those in the upper levels of management inthe finance industry are absolutely certain of what they are doing, and how itaffects the citizens of this country... Any system that enslaves and controls apopulation in the way that our finance system does, cannot possibly be from the

Lord. So there is only one other place it could come from...

Banks do not lend out depositors' money

Does anybody here know where the banks get the money that they lend out?Actually, most people assume that they lend out depositors' money. But the BankAct specifies that the bank must retain the depositor's money on account, andmust pay him interest on it.


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So, where else might the bank get the money?

The Bank Act also specifies that the bank may create, out of nothing, new credit("money") through loans, but that it must have a relationship to the deposits.Originally, the banks were allowed to lend out six times their deposits, but today

banks are allowed to issue new credit up to 26 times their deposits. That meansthat if I deposit my $1,000 in a Canadian bank, then that bank can issue loans tothe tune of $26,000... Go to the bank, get a loan, and ask for the loan proceeds incash. No matter the size of the loan, you cannot get it in cash - it must bedeposited to your account, and cheques written in order to access the money. Notangible money is ever created; only debits and credits (figures) are created...

Today in Canada, the only source of money, whether private, corporate, orgovernmental need, is a loan from a bank. But you can never borrow your wayout of debt. You can only borrow your way into bankruptcy, at which time youturn your back on your assets and your hard work, and give up possession of it to

those to whom you owe money, but who gave absolutely no vested interest inyour property...

1917: the Federal Income Tax

Now that we understand that the national debt can never be fully repaid using thecurrent system of finance, the question arises: How, then, does it get paid? In1917, after finding out that the debt was beginning to build, the FederalGovernment usurped the powers of the provincial governments and, under theguise of the War Debt, instituted the War Debt Income Tax Act. The Act wasunconstitutional then, and it is still unconstitutional today. When it was enacted, it

was on a voluntary basis, at a rate of 10%, and applied only to those earning$10,000 or more per year. In 1917, the average yearly salary was about $250.

The Income Tax Act could have more appropriately been named the Bank InterestDebt Income Tax Act; but then, people would have fought to the death to keep itout of effect. Since that time, the Federal Government has seen fit to increase thetax rate as high as 65% on high-income individuals, and has also seen fit toremove the lower limits to the point that, as you know, everyone is required topay...

And now we have had the GST, which in my opinion is equaly as

unconstitutional, rammed down our throats by a group of MPs that brashlyand boldly declare that they are smarter than we are, and they know best...

Facing up to reality

Our Federal Government has gone so far away from the Constitution, in nearlyevery area of jurisdiction, that it now conspires to change it altogether. But that isnot the solution. Getting back to the way it was written is the solution...


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Each one of us selects his mode and method of doing battles with oppressivegovernment. Some of us do it by speaking out... some of us join non-partypolitical groups, some of us pray, and most of us do nothing. We have a conditioncalled the "ostrich syndrome." If we ignore it and don't look at it, it might goaway! But remember this: if your head is in the sand, your butt is an open target!

The Hart System: tax avoidance Federal Income Tax is illegal

I handle my fight personally using a system called the Hart System of

Effective Tax Avoidance. Gerry Hart passed avay recently in Winnipeg, but

not before becoming Canada's undisputed champion No. 1 tax fighter. Mr.

Hart for many years opted to take an aggressive and active position against

oppressive government, and he has not paid income tax in nearly 50 years.

During that time, he has been imposed upon, charged, harassed, his privacy

invaded, and his person subjected to illegal search. But he has never given an

inch. He has been to the Manitoba Court of Appeal 22 times, but has never

lost.

In 1950 Gerry Hart received a copy of a Vancouver newspaper article whichreported on a recent ruling made by the Supreme Court of Canada. He thenrequested a copy of the ruling itself, from the Supreme Court Chancery in Ottawa.He also requested a copy of the B.N.A. Act, because the ruling quoted varioussections of that document. He found, just as the newspaper had reported, thatSection 91 and 92 of the B.N.A. Act do not allow for the Federal Government tobe in the Income Tax business.

The two documents - the Supreme Court ruling and the B.N.A. Act - have

been the basis of his battle, and the only two cocuments he has needed. Hehas never had the benefit of legal counsel, and has chosen to appear in court

by himself. His only evidence has been those two documents. Charges against

him have been thrown out of court 22 times. The last time, some twelve or so

years ago, Revenue Canada was told that if it ever brought Gerry Hart back

into court, that Revenue Canada itself would be charged with contempt of

court.

Gerry Hart has never been convicted under the Income Tax Act. As he says,"Income Tax is illegal. Therefore the collection of it is also illegal. Since RevenueCanada has no legal method of collecting income tax, they must resort to illegal

means." Those illegal means include harassment, intimidation, illegal search,illegal seizure, violation of privacy, extortion, coercion, and complete ignoranceand contempt for the human rights of Canadian citizens...

We have various books and booklets available to help to educate on how toprepare to stop paying these illegal taxes. If our "Tax Kit" can help you to avoidseveral thousands of dollars of tax, it is certainly worth its small investment. Be


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sure to protect yourself from Revenue Canada before you get involved in this taxfight. Read the books, and find out how...

If you still have questions after you have read the books, then call me. I'll try tohelp you. I have not paid income tax since 1978, and I have used Gerry Hart's

System of Effective Tax Avoidance. I know it works; I'm living proof.

Ladies and Gentlemen: I've talked for a long time. But I cannot overstress thelateness of the hour. We all know what needs to be done, so let's get busy and getto it!

Murray Gauvreau

If you want to contact Mr. Gauvreau, his adress is :

General Delivery, Grovedale, Alberta, T0H 1X0 and his phone : (403)

532-6843
http://www.prolognet.qc.ca/clyde

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