Friday, April 25, 2008
In and Out scandal: The Crux of The Matter
There is no clause that prohibits local ads from being identical to national ads. However, that is not the issue at hand. The issue at hand is whether the local candidates incurred the said expenses. Elections Canada, rightly, balked at the notion that money that was transferred to local ridings and then immediately transferred back constituted a local “expense”. After all, suppose my brother transferred money into my business account and I immediately transferred it back out. It would be a pretty neat trick if I was able to claim the act of transferring that money back into my brother’s account as legitimate business expense, but alas Revenue Canada would not kindly to such a ploy on behalf. Conservatives thought Elections Canada would be more gullible. As to the accusation of exceeding election spending limits, if my brother was to transfer money into my business account and then I immediately transferred the money out, I could not then declare the money transfer as a business expense even if my brother went on to spend that money on materials that if had I purchased myself I would have been able to deduct as business expense. I did not make the purchase. My brother’s business is not mine and neither is a national party’s business the business of the local candidate. The Elections Act treats the two as different.