Ethics:
I was talking to an electrician who does heating cable repairs, getting referrals from various manufacturers. On one job the manufacturer is pushing the electrician to say the cable has to be replaced. I don't have the details but if, for example, it's a 200 foot pipe the manufacturer could score an eight to ten thousand dollar sale. The repair would be a third of that.
However to strip the cladding and insulation, replace the cable, re-insulate and re-clad could cost $200 per foot or far more depending on the height above ground.
Repair: Under $5K with a few hundred dollars in parts.
Replacement: Over $40K plus disruption
To get a sale of under $10K the manufacturer wants the end user to waste possibly ten times the amount of a repair.
Going back to the above beat-the-taxman house flip:
The pseudo owner has the deed in his hands and has been living rent free for a year and a half. The million dollar property has gone up $500K and he now reuses to move because the $50K rent he saved doesn't give him a down payment on his own place.
With an effective lawyer he might be able to delay the process two or three years, allowing him to save another $100K to $150K in rent.
Now if the real owner finally finds a way to avoid the CRA and has an IOU for the million he goes after his $1 million, getting back his capital, the secret loan.
Then the deed holder points out that the investor doesn't have a judgement against him and it's been over two years and after two years the debt is uncollectable unless the debtor admits to the debt or pays any amount in settlement. Then the clock resets.
All the debtors says is "I have no debt" and the investor is screwed.
At the end the deed holder gets a free house, now worth a million and a half, in exchange for his reputation.
Five or ten years later he has new friends and family. Life goes on. He feels good about himself because he screwed someone who was screwing the government.
The double edged sword. I knew a guy that cut his business taxes by putting his wife on the payroll but she never worked at the business. When they split up he fired her and she went after severance pay. He did not want her telling the CRA his secrets so paid up.
Be very careful who you sleep with, especially if you talk in your sleep.
I was talking to an electrician who does heating cable repairs, getting referrals from various manufacturers. On one job the manufacturer is pushing the electrician to say the cable has to be replaced. I don't have the details but if, for example, it's a 200 foot pipe the manufacturer could score an eight to ten thousand dollar sale. The repair would be a third of that.
However to strip the cladding and insulation, replace the cable, re-insulate and re-clad could cost $200 per foot or far more depending on the height above ground.
Repair: Under $5K with a few hundred dollars in parts.
Replacement: Over $40K plus disruption
To get a sale of under $10K the manufacturer wants the end user to waste possibly ten times the amount of a repair.
Going back to the above beat-the-taxman house flip:
The pseudo owner has the deed in his hands and has been living rent free for a year and a half. The million dollar property has gone up $500K and he now reuses to move because the $50K rent he saved doesn't give him a down payment on his own place.
With an effective lawyer he might be able to delay the process two or three years, allowing him to save another $100K to $150K in rent.
Now if the real owner finally finds a way to avoid the CRA and has an IOU for the million he goes after his $1 million, getting back his capital, the secret loan.
Then the deed holder points out that the investor doesn't have a judgement against him and it's been over two years and after two years the debt is uncollectable unless the debtor admits to the debt or pays any amount in settlement. Then the clock resets.
All the debtors says is "I have no debt" and the investor is screwed.
At the end the deed holder gets a free house, now worth a million and a half, in exchange for his reputation.
Five or ten years later he has new friends and family. Life goes on. He feels good about himself because he screwed someone who was screwing the government.
The double edged sword. I knew a guy that cut his business taxes by putting his wife on the payroll but she never worked at the business. When they split up he fired her and she went after severance pay. He did not want her telling the CRA his secrets so paid up.
Be very careful who you sleep with, especially if you talk in your sleep.
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