BILLS OF EXCHANGE ACT ( GOVERNMNET OF CANADA)
According to our constitution , section 92 gives exclusive nontransferable power to direct tax to the provincial government. The federal government can impose an excise tax but cannot impose a direct tax. This is confirmed by the Supreme Court in the Lord Nelson vs.: attorney general of Nova Scotia and attorney general of Canada in 1950.( copies available) No level of government can transfer the powers given to it under the constitution to any other level of government. No level means no level .This being the case, how can the municipal government impose a property tax and take your property if you do not pay? The answer is simple, they do not have the power to do this .How then does the municipality get the funds to pay for the public costs? Through the Bills of Exchange Act.
The way it currently works as you know, you receive the Municipal Tax Bill and tear off the bottom and include your own personal cheque to the amount of the bill. You sign your cheque giving it currency ( it is the signature that gives the cheque currency , not the numbers on it) and then send the tear off along with your personal money in the form of a cheque to pay the public debts. This is the way it currently works but IS this the way it was intended to work? I think not.
In that we are all private individuals and we share a common public domain, it is necessary to have a collective infrastructure and the upkeep of same. This requires capital. The public domain requires public money to pay public debts. Who has the power to create the public money? The collective public through monetizing the TAX BILL .The assessment that is done by the municipality is based on YOUR PRIVATE PROPERTY .You are allowing the public to use your property as the collateral to create the public revenue to pay the public debts.
The tax bill is actually money (as a bill of exchange), like a cheque .It has the numbers on it or at least the location for the numbers. You simply give it value by signing your signature in your normal cheque writing script. It is charged by your signature and becomes a bill of exchange and then can be deposited in the public accounts to pay the public debts.( see bills of exchange sec 57-1 below)
What happens if the powers that be refuse to accept your offer? They are in default and you can liquidate them by calling the CRA and advising them (CRA) that the Municipality is not abiding by the law and an audit may be required.
R.S., c. B-5, s. 57.
Presumption of value57. (1) Every party whose signature appears on a bill is, in the absence of evidence to the contrary, deemed to have become a party thereto for value.
Presumed holder in due course
(2) Every holder of a bill is, in the absence of evidence to the contrary, deemed to be a holder in due course, but if, in an action on a bill, it is admitted or proved that the acceptance, issue or subsequent negotiation of the bill is affected with fraud, duress or force and fear, or illegality, the burden of proof that he is the holder in due course is on him, unless and until he proves that, subsequent to the alleged fraud or illegality, value has in good faith been given for the bill by some other holder in due course.
Dishonour by non-acceptance80. A bill is dishonoured by non-acceptance when
(a) it is duly presented for acceptance and such an acceptance as is prescribed by this Act is refused or cannot be obtained; or
(b) presentment for acceptance is excused and the bill is not accepted.
R.S., c. B-5, s. 81.
Recourse81. Subject to this Act, when a bill is dishonoured by non-acceptance, an immediate right of recourse against the drawer and endorsers accrues to the holder, and no presentment for payment is necessary.
R.S., c. B-5, s. 95.
Notice of Dishonour
Notice of dishonour95. (1) Subject to this Act, when a bill has been dishonoured by non-acceptance or by non-payment, notice of dishonour must be given to the drawer and each endorser, and any drawer or endorser to whom the notice is not given is discharged.
Subsequent holder
(2) Where a bill is dishonoured by non-acceptance and notice of dishonour is not given, the rights of a holder in due course subsequent to the omission are not prejudiced by the omission.
Notice of subsequent dishonour
(3) Where a bill is dishonoured by non-acceptance and due notice of dishonour is given, it is not necessary to give notice of a subsequent dishonour by non-payment, unless the bill is accepted in the meantime.
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