Canadian Banks and Insurance companies will benefit from changing the accounting rules that govern whether their assets are subject to writedowns under fair-value accounting. Here’s what Dominic D'Alessandro had to say
`I think these kind of [fair value] accounting practices are wrong theoretically, they're wrong operationally, they make no sense for anybody,'' D'Alessandro told investors. ``It's absolutely nuts.''
I wonder what Dominic D'Alessandro’s view would be on the methodology cooked up by Jim Flaherty and Mark Carney that creates “tax leakage” by ignoring the 38% of taxes paid by income trusts held in RRRPs, for which the government’s “solution” was to tax them a second time at 31.5%? Would Dominic consider that phony accounting practice which cost investors $35 billion of their savings to be “absolutely nuts”, or simply beneficial to Manulife selling more life annuities and Income Plus?
Please share with us your thoughts, Dominic.....and your logic.
Friday, October 17, 2008
Dominic D'Alessandro: "It's absolutely nuts.''
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4 comments:
Well suck it up Dominic.
We were told to suck it up by just about everyone from Jim Flaherty to Mark Carney.
Get a life.
Dr Mike Popovich.
Dominic also had a hand in the tax leakage scam. Mr. Morgan from Encana and BCE's Sabia all had Flatulence and Carnage's ear. Nuts you say, Dominic, your Company made a fortune off us seniors who were betrayed.
Jerrthebear
Much as I have NO time for D'Alessandro due to his involvement in the Income Trust Lie, I actually agree with him on this dodgy accounting scam that is being proposed....Unless of course it is extended to investors...can we magically make our losses disappear with this new accounting trick too?
How about a further six year extension on the Income Trust tax to encourage investment in the oil sands and give us a chance to recover some of our losses. Or how about extending the dividend tax credit to RRSP's to allow people getting ready for retirement to recoup some of their losses? Those options are realistic and would only take a wave of Stubby's wand...no accounting trickery at all.
Polyian
If that was true then the IT sector should be flourishing right now. I paid higher taxes pre-massacre than post massacre. My tax liability would be higher today.
No, something else is at play here. It is either Dept of Finance incompetence (I don't believe this, although the media has been totally incompetent in reporting it) or Flaherty caved into special interests who wanted to see the sector killed.
Also, why shouldn't I as an individual tax payer have the same ability to access pre-tax cashflow in my RRSP as pension plans such as OTPP or OMERS?
Transcanada
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