Modeling Journey

Did we learn today the application by federal tax authorities of the Orwellian value system introduced in Animal Farm?

Courtesy of the Oliphant Commission into the three cash payments made by Karlheinz Schreiber to former prime minister Brian Mulroney?

In Animal Far, the pigs who emerge as leaders of the animals set out the values to guide the new society, declaring that All animals are equal, but some animals are more equal than others.

Our tax authorities seem to have similar system of values (unless I am missing something) when it comes to how much tax a former prime minister has to pay on earnings.

How so? Consider this:

"Brian Mulroney only paid taxes on half of the $225,000 Karlheinz Schreiber paid him to act as a high-profile pitchman for an armoured vehicles project, a public inquiry has heard.

According to an agreement with the Quebec tax authorities, Mulroney paid income tax on $112,500 as part of a procedure called voluntary disclosure.

Mulroney's lawyers confirmed the revelations on Tuesday, which came during the former prime minister's fifth day of testimony at the Oliphant inquiry.

During the testimony, inquiry head Justice Jeffrey Oliphant appeared puzzled.

"Let me get this straight ... He ended up with a voluntary disclosure paying tax on only half of what he would have paid had he declared it in the year earned?"

Mulroney lawyer Guy Pratte said his client declared the full amount, but Quebec tax officials only assessed income tax on half of the $225,000.

Mulroney told the inquiry that his accountants took care of the matter.

"I referred the matter to my tax advisers in 1999," he said. "They resolved the matter with the government of Canada and the government of Quebec. "

And after their discussions and negotiations, all I was advised of was that the matter had been resolved and that certain monies were to be paid, and the cheques were issued. That was the extent of my involvement in it.""

Hmmm ….

Wonder where I can get such a tax break ….

Wouldn't it be nice if my MP asked the Minister in Parliament to explain why Brian Mulroney only was allowed to pay tax on half his declared earnings.

Is there some kind of 'phantom discount' which only PMs can use, to cut their taxable income in half?