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Why is it "bad" when illegal money is brought into Canada?

  • Last Updated:
  • Oct 28th, 2020 8:40 am
Deal Fanatic
Sep 23, 2007
5061 posts
1151 upvotes
I agree with a lot of posters. It's not a serious issue in Canada. It's more about people who cry foul when others are richer than themselves.

Rich foreigners buying up property? The group complaining obviously don't own properties. If you are an existing property owner, Canadian or foreign, you would actually be thrilled that the market is hot.
Deal Addict
Jan 22, 2003
4629 posts
180 upvotes
Austin/Markham
Its a bigger issue when legal money is brought into the country because that's a bigger percentage.

As a fresh grad from UofT, I'm better off going to Dubai and working for 10 years and saving up with 0% incometax and buying a house with a 50% downpayment in Toronto.

If I started working here, I'd lose 50% of my income in taxes and the actual cost of my house would be 4X in higher after tax payments to my bank in interest and principal payments.

Folks coming here with $1M cash is $1M cash that was never earned through Canadian taxation. You'd have to be a masochist to work in Canada to buy real estate vs abroad while you're young.
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demandez-lui si elle dormira avec vous pour un LED keychain
Deal Expert
User avatar
Oct 26, 2003
34247 posts
3931 upvotes
Winnipeg
burnt69 wrote: If Canada's economy actually created wealthy people in any significant numbers, you'd probably see the same, Canadian kids buying condos in foreign countries that have the 'best' schools, etc. With money from their families.

But that's not proof, at all, of money laundering. Lots of wealth has been created in China over the past few decades. Only those who have no clue what 'communism' means in the context of China run around claiming that wealth created by Chinese businesspeople is 'ill gotten'. Or that there's a lot of internal corruption. China is, by far, one of the most capitalistic and economically free countries on Earth right now.
China do have a lot of corruptions though, the ideology of communism is to ensure everyone is starving poor.
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Oct 6, 2015
2463 posts
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divx wrote: China do have a lot of corruptions though, the ideology of communism is to ensure everyone is starving poor.
That's not what 'communism' as applicable to China means. The dreaded "communism" in the Soviet Union put millions into poverty through sub-optimal planning of production and incentives. The "communism" in China does quite the opposite, central planning allows for market inefficiencies to be bypasses as China's central planners are selected to be the top scientists and engineers available for the purpose. Hence, China creates insane amounts of wealth.
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User avatar
Oct 26, 2003
34247 posts
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Winnipeg
webdoctors wrote: Its a bigger issue when legal money is brought into the country because that's a bigger percentage.

As a fresh grad from UofT, I'm better off going to Dubai and working for 10 years and saving up with 0% incometax and buying a house with a 50% downpayment in Toronto.

If I started working here, I'd lose 50% of my income in taxes and the actual cost of my house would be 4X in higher after tax payments to my bank in interest and principal payments.

Folks coming here with $1M cash is $1M cash that was never earned through Canadian taxation. You'd have to be a masochist to work in Canada to buy real estate vs abroad while you're young.
you don't get rich by working for someone, that is true everywhere, outside of Canada as well.
Deal Fanatic
Oct 6, 2007
8126 posts
4653 upvotes
Kootenays
"VICTORIA -- An independent report estimates that $5 billion was laundered through British Columbia's real estate market last year and increased the cost of buying a home by five per cent.

An international anti-money laundering agency said last year that organized criminals were laundering about $1 billion annually in the province. But Maloney's report estimates far more cash was filtered -- though the total amount laundered in B.C. was a relatively small portion of the Canada-wide estimate of $47 billion."

https://www.ctvnews.ca/canada/5-billion ... -1.4415765
Deal Addict
Sep 6, 2011
1045 posts
1097 upvotes
mr_raider wrote: Canada is an amateur destination for corrupt thrid world officials. France is king:

https://www.theguardian.com/world/2017/ ... -in-france
France is where every and any corrupt Francophonie dictators/politicians of ex-French colonies exile to. Governments like that don't care if you abscond with the wealth you've stolen from your people, just so as long as you don't steal from other rich and powerful people.
Deal Fanatic
Jun 26, 2007
5954 posts
1427 upvotes
???
Bringing large sums illegal of money into a country is bad for a very few simple reason.

1. It supports the criminal enterprise that the government is using your tax dollars to eliminate. You think police/army/courts work for free? The 13% hst tax or whatever else tax that these criminals pay when buying things is pennies compared to the amount used to combat their activities. Governments need to create infrastructures to battle against crime, and also feed or house them when caught (jail). Also these guys don’t pay an income tax on drug money etc.

2. It damages foreign relations, if your country is deemed to be a haven for criminal enterprise you better be ready to support your own populace with your own domestic product and hope you’re not an exporter/importer of any type of goods. The government is what setups up trade negotiations and embargo and tariffs for a countries imports or exports. If they deem you to be a haven for criminal enterprise you’re not gonna have a good time at foreign trade negotiation tables.

3. It’s promotes corruption of government. When you’re have a corrupt government, generally the average person or poor person suffers the most, they don’t get social services or general welfare of the country is reduced. Also corrupt governments have credit issues and find it hard to borrow from foreign banks to support infrastructure or growth. Etc.

Basically illegal money only benefits the criminal and those that directly or indirectly support them.
Deal Addict
Apr 30, 2011
3273 posts
390 upvotes
RICHMOND HILL
vaportech wrote: Bringing large sums illegal of money into a country is bad for a very few simple reason.

1. It supports the criminal enterprise that the government is using your tax dollars to eliminate. You think police/army/courts work for free? The 13% hst tax or whatever else tax that these criminals pay when buying things is pennies compared to the amount used to combat their activities. Governments need to create infrastructures to battle against crime, and also feed or house them when caught (jail). Also these guys don’t pay an income tax on drug money etc.

2. It damages foreign relations, if your country is deemed to be a haven for criminal enterprise you better be ready to support your own populace with your own domestic product and hope you’re not an exporter/importer of any type of goods. The government is what setups up trade negotiations and embargo and tariffs for a countries imports or exports. If they deem you to be a haven for criminal enterprise you’re not gonna have a good time at foreign trade negotiation tables.

3. It’s promotes corruption of government. When you’re have a corrupt government, generally the average person or poor person suffers the most, they don’t get social services or general welfare of the country is reduced. Also corrupt governments have credit issues and find it hard to borrow from foreign banks to support infrastructure or growth. Etc.

Basically illegal money only benefits the criminal and those that directly or indirectly support them.
I agree with 1. and most of 2. and 3, but I don't believe that the perception of our country worldwide has changed enough to damage foreign relations and credit ratings beyond what they already are.

There's a reason why there is a global corruption perception index instead of a global corruption index.
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Mar 9, 2012
3249 posts
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Kitchener
garmium wrote: I am not understanding the line of logic.

Say Pablo Escobar, the notorious drug lord, wants to bring his ill gotten money into Canada because he wants to buy Canada Goose jackets, Canadian maple syrup, seasons tickets to Raptors/Maple Leafs, real estate, Canadian beef, etc
How is this a bad thing for Canada?


It would be like if someone owned a store, do they really care how each customer got obtained the money? I have never once been asked how I obtained my money when making a purchase...
One reason is that it increased prices for everyone. Supply and demand -- it lowers supplies and increases demand, which makes it harder for everyone. This is particular has to do with housing, as we see in places like Toronto, Vancouver in particular, and the spillover into cities within a 2 hour drive. Average home prices in Kitchener, for example, are 3x higher than just 10 years ago, but wages are 300% higher. When a 450 square foot condo goes for $350,000 with condo fees of $700/month you have problems.
How can we fly like eagles, when we're governed by Turkeys?
Deal Addict
Nov 23, 2008
4320 posts
1258 upvotes
sandeep8g wrote: Its not bad.

Ask those Chinese students how they obtained $50 million for their mansions.

Image
"No income verification!"
Wow.... sounds like those 2006-era NINJA loans from the good old bankers on Wall Street USA are back with a vengeance!
Deal Expert
Feb 24, 2018
15574 posts
16836 upvotes
SomeOtherDude wrote: "No income verification!"
Wow.... sounds like those 2006-era NINJA loans from the good old bankers on Wall Street USA are back with a vengeance!
It's out of date, the 35% no-income verification is gone. Our socialist technocrats in Ottawa made sure of that.
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Mar 10, 2018
3721 posts
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centre of universe
sandeep8g wrote: Its not bad.

Ask those Chinese students how they obtained $50 million for their mansions.

Image
actually the question is how are they allowed to bring all that money in Canada? what are the rules and why were they not enforced or were they?
I dont care about Ethics, morals, rules or laws. I will apologies only when I get caught.
I try not to apologies but sometimes do it. not because its right thing but it benefits me.
New Mantra for idiots Just ask RFD before searching answers anywhere.

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