Pubdate: Fri, 23 Apr 2004
Source: Montreal Gazette (CN QU)
Copyright: 2004 The Gazette, a division of Southam Inc.
Contact:  http://www.canada.com/montreal/montrealgazette/
Details: http://www.mapinc.org/media/274
Author: Mike De Souza, The Gazette

MINISTER WANTS TO CHARGE PST ON ILLEGAL DRUGS

Tax Collectors Get Search Powers. Convicts Linked to Hells Angels Accused 
of Evading $20 Million in Sales Taxes

They put the squeeze on parents with children in day care. They shook down 
commuters who take public transit. Why not also hit up drug dealers for 
much-needed cash?

Quebec Revenue Minister Lawrence Bergman yesterday announced the government 
will try to tap a new and unlikely source of tax revenue: illicit drug profits.

"The rules of the (provincial sales tax) say that all goods which are sold 
in the realm of a commercial activity are taxable, period," Bergman said, 
arguing it's his department's job to collect taxes, not evaluate the 
morality of a transaction.

On Wednesday, the department announced it wanted to recover millions of 
dollars in unpaid PST on the sale of cocaine and hashish by convicted 
criminals linked to the Hells Angels.

It assessed 20 different individuals with criminal records for about $20 
million in unpaid taxes, Bergman said.

Quebec yesterday beefed up its collection powers, adopting legislation 
enabling tax collectors to secretly search and seize mail and other 
documents during major investigations.

Bergman admitted it could take time to actually make the law work. In some 
cases he may have to wait for the state to sell off seized homes or assets 
before collecting.

Opposition revenue critic Guy Lelievre just laughed when he heard about the 
minister's plan. He said Bergman should instead go after corporate 
tax-evaders who use foreign countries as tax-free fiscal paradises.

"There's lot's of money at stake. It's $2 billion," said Lelievre, the 
Parti Quebecois MNA for Gaspe.

He urged the government to launch a general investigation, but he singled 
out Canada Steamship Lines, the shipping company owned by Prime Minister 
Paul Martin's family, as a possible target.

Bergman said he wants to apply the same rules to everyone, and pointed out 
the department has a Toronto office to investigate outside companies that 
do business in Quebec. In some cases, he said the government even sends 
investigators abroad to check out companies.

The new rules adopted yesterday will allow the department to secretly seize 
material only after getting a warrant from a judge. But Bergman said it's 
aimed mainly at a large-scale organized network of tax evaders.

Lelievre said the department doesn't need these extra powers, and he fears 
they may lead to unnecessary "fishing trips."
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MAP posted-by: Terry Liittschwager