Description: This seems like quite a surprise: a group of young and wealthy Canadians wants to pay more in taxes. There are approximately 200 of these Canadians in the so-called Resource Movement, and they are arguing for the government to tax them – and others in the 1% class – with higher rates or new measures, like an inheritance tax. Professor Patrick Leblond, who teaches in the Graduate School of Public and International Affairs at the University of Ottawa suggests another measure. He recommends that the full amount of capital gains be subject to taxation, rather than the current 50% exemption.

Date:  September 16, 2020

Source:  cbc.ca

Link: https://www.cbc.ca/news/canada/milennials-taxes-rich-wealth-resource-movement-inequality-pandemic-1.5726557

Discussion points:

1) What did you find interesting about the Resource Movement?

2) Why is it that only 50% of capital gains are currently taxed in Canada? Do you think the policy should be left as it is?

3) Chapter one of Wiley’s Auditing: A Practical Approach, talks about several types of audits or assurance engagements, such as financial audits, comprehensive audits, and internal audits. What type of audit would an auditor from the Canada Revenue Agency perform to determine the accuracy and completeness of a taxpayer’s capital gains?