Value stocks | Page 6 | General financial discussion | Discussion forum

I beg to differ. From various forums I participate in, taxpayers would report cap gains on gold bullion. Our tax system is based on the honor system. Would you purposely abuse it?

I would also assume the dealer's business records would/could be subject to CRA review as part of the dealer's business tax returns. It seems to me this could be fertile hunting grounds for CRA just like 'fine art' sales... looking for tax dodgers. Do you want CRA to follow up on a sales receipt with your name on it?

Added: There is no real value added in taking that 5 or 10% risk of CRA following through to ask me where that cap gain was declared, and then result in X years of my tax returns being reviewed. Standing in the middle lane of a freeway is not my idea of good risk taking.

The whatever-I-get-away-with attitude is one reason why government agencies are being stricter and stricter. I always report every penny I take in or spend (that's expensable) and haven't gotten into trouble. I've had to make an amendment or two over the years but it always went smoothly. Well, except that year in the nineties when I overpaid and it took many letters and phone calls to get the cash back!

A no-problems history can also make things easier if you get selected for a "random audit." A red-flag history can cost you the benefit of the doubt.