Canadian Finds Peace with Elegua

Website: www.centum.ca/emelikeukpabi Canadian finds peace with Elegua Without travelling to Nigeria or meeting its values growing up, Piscopo says the Yoruban spiritual format is the harbinger of man’s foray into religi- osity including western ideas of God in christianity

By Peter Uduehi concept of philosophy. Jesus did believes every human being is Maria Piscopo does not like not speak of religion, he had no or- ―African‖ by origins. She says she to call the methodology of You- der, no church and no special for- first came in contact with Elegua in ruban spirituality ―a religion‖. In- mat.; he spoke of love and justice her coffee cup. ―Yes, coffee cup,‖ stead she says Yorubans, who gave and compassion. It was man that she said. A picture appeared in the the world a reason to be spiritual, made a religion out of him with or- cup and was taken aback, scared. because of their fervent and un- ders and rituals like the Catholic She tried to make it go away, but it shakeable belief in the oneness of Church. The principle of God is stayed there for a while. Petrified, the Creator, are strict advocates of philosophical, not religion. she proceeded to ask him who he the universality of the God spirit In Yoruba tradition it is the was and what he wanted. Nothing laced in pure African philosophy. same thing.‖ Elegua, whom she happened. Days later she ventured ―Yes,‖ she asserts, ―what I calls, the principal conduit to God into a shop in Toronto where she believe in is embedded in African (the ―quantum physics‖ of our saw the same picture as the one in philosophy. This is not a religion. world), is the base of the Yoruban her coffee cup, this time the same face was on a candle. She asked the storekeeper who the face represented. She was told it represented ―Elegua‖, a Yoruban God messen- ger. Piscopo felt Elegua wanted her to know him. She then began studying to know more about Nige- ria‘s Yoruba spirituality, Eledumare (or God, principle of universality or oneness). The more she studied the more Elegua appeared in her life and intelligence and in no time she became an evangelist of Elegua. know it. Every so-called relig- Today, she says,‖more Ca- ion in this world, whether they nadians have been informed come from China, Japan, Eng- through me of the true nature of land, America, are principled Eledumare the Creator and his in African Yoruban concepts. principal agent Elegua‖. Shango, This is the truth,‖ she argues. Oshun, Ogun and Yamenya and Piscopo says she has been eve- other forms of Yoruban spirituality rywhere in terms of knowing are philosophies of African oneness all western faiths but Elegua of God that Piscopo is determined has always brought me to him, to spread in the West without hav- to know only him. ing an African travelling experience She has learned and mentoring. ―I have never been ―Elegua is compassionate, lov- to Africa and have never lived ing, forgiving, there, but Africa lives within me,‖ and ―though might teach you she says, noting Africa lives in a lesson about life, is kind and every human being but they don‘t Continued On Next Page ...

Maria Piscopo found Elegua and spirituality. ―Through Elegua, I feel she has not been the same since the presence of God always; Elegua has never failed me since I came in ―Religion is man-made but philoso- contact with him. phy comes from God. She went on: Piscopo, a Canadian who Koffi Olomide’s band here on June ―I can tell you as someone who has says she finds peace with Elegua, is 11 at the Opera House. This Page sponsored by Felix Eboh studied every eastern and western of Italian extraction. She says she of Elix Travel. For all your Travel Call Peter 647-878-2038 religion, that the Yoruban spiritu- never expected a meeting with Afri- Plans Call: 416-423 3270. ality is the father of every other can philosophy even though she See ad on Pg 3. See full ad on Page 10. For Maria Piscopo, peace is derived from Elegua

Continued From dians and other westerners steeped in the many characteristics of God, and Elegua has Previous Page notion that African spirituality is ―evil or taught her that we ourselves are God, like voodoo. They just don‘t understand it‖, not- Jesus tried to tell us in the holy trinity — be-

ing that voodoo is a bad word for anything ing the father, the son and the holy spirit. Je- will never hurt you. He will never let you they don‘t understand. African philosophy is sus came in human form, he is also God, and down‖. But she says you have to earn not harnessed in evil spirits. Elegua is a good as such trying to tell us that he is like us. God Elegua‘s love. Piscopo believes Elegua chose spirit, she says, adding Elegua does not take is like us, about creation and we too are about her for her mission because she‘s the mother kindly to anyone who commits evil against creation holy in one and the spirit. For me, of twin children. In Yoruban tradition, she another person. ―With Elegua, there is the the Yoruban tradition is supreme beacuase has been informed, mothers of twins are the law of Karma. If you do evil, it comes back to Elegua is the truth .‖ mothers of the earth, of all Yoruba people of you because God does not like evil. Elegua is Pisopo has no shrine to Elegua any- Nigeria, ―so I understand twins are very re- about the truth, and he exposes the truth.‖ where because she says Elegua doesn‘t be- spected in Yoruban culture and their mothers A woman who told many lies about lieve in being enshrined or housed in a are divine over there (in Africa).‖ her husband while they were separated just church or mosque setting. The African phi- Twins, or Edun (or Ibejis) as they are because she didn't want him to have a good losophy, she says, is what it is: a philosophy. called in Yoruba, are represented by a special relationship with his children was exposed ―It‘s in your mind, your body and spirit. It‘s specie of monkeys who in turn represent recently because Elegua doesn‘t like mean- your thoughts, your feelings, actions, he‘s not wealth and they have come to the earth to ness, she said. ―When you believe in Elegua a picture or a shrine, it‘s how you treat the eradicate pestilence and poverty. They are to and trust his presence in your life, you are next person...if you treat someone right you be revered by all and their wishes honoured always protected,‖ she said, stressing that are honouring Elegua and God the Crea- at all times. ―I have never been there ―this woman lied that her husband was sexu- tor...it‘s the same concept when Jesus says ‗if (Nigeria) but through Elegua I know so much ally molesting their daughter , but each time you do for the least of my brethren you do about Nigeria now. When I first tried, for ex- she lied Elegua found ways of exposing her. onto me‘. I am glad to say I found Elegua.‖ ample, to figure out where Elegua came from, This is the power of Elegua.‖ Elegua, she pos- Piscopo, who says she helps people he showed me without hesitation that he tulates, is about balance, the concept of ‘we seek the truth through Elegua, consults with comes from among the Yoruban people of before me‘, a concept that puts the world in clients by appointment and she can be Nigeria and pinpointed the area to me on the order. ―You have to give to receive...Elegua reached at 647-242-9021. map.‖ Piscopo has a word of advice for Cana- teaches all that.‖ Piscopo believes there are

African World 6/1/10 p 2 Atican World Newspaper 6/1/10

Friday &

African World 6/1/10 p 4

Africa countries condemn Israel's strike on Gaza-bound aid

By Dana Wagner Guardian. 'Boycott, recall the South African ambas- attack and calling on the international community Israel's raid on an aid flotilla bound for the sador to Tel Aviv, and expel the Israeli ambassa- to act to end Israeli impunity. Gaza Strip has left at least nine dead and several dor.' KENYA: more wounded. On board were activists and aid Vally is also part of the Coalition for a Free Pales- The Kenyan-based civil society groups Kituo Cha workers from more than 30 countries, accompany- tine that represents a number of South African Sheria and the Kenyan Section of the International ing more than 10,000 tonnes of aid supplies in- CSOs that in a statement expressed outrage at the Commission of Jurists are signatories to a state- tended for Palestinians in Gaza. Dana Wagner pro- 'Israeli massacre'. ment signed by 33 groups gathered in Kampala vides a round-up of responses from African gov- The Congress of South African Trade Unions that condemns Israel's attack against the flotilla. ernments and civil society groups. (COSATU) condemns the attack and in a statement The government of Kenya said it 'expresses deep The Israeli attack against an aid flotilla en route to calls for the international community to hold Israel shock and regret at this tragic loss of civilian lives the Palestinian people in the Gaza Strip has left at accountable 'for the murder of foreign civilians at and calls for a full investigation of this deplorable least nine dead and several more wounded. Afri- sea and illegal piracy of civilian vessels carrying incident,' in a statement released 1 June by the For- can countries have joined other members of the humanitarian aid'. eign Ministry. The ministry also called for an end international community to express outrage at the A vote for the expulsion of ambassador Dov Segev- to the blockade encircling the Gaza Strip. latest show of aggression towards the Gazan Pales- Steinberg has been posted online on the news site UGANDA: tinians. iafrica. International NGOs, gathered in Kampala for the Prime Minister Benjamin Netanyahu defended Is- The South African Department of International International Criminal Court Review Conference, rael's action against the ships, in international wa- Relations and Cooperation condemns the flotilla issued a joint statement to condemn Israeli violence ters at the time of the attack, as a preventive meas- attack and in a press release states it also 'strongly against Palestinians in Gaza after the attack on the ure to stop aid from reaching the blockade around condemns all military aggression by Israel against aid flotilla. The statement was signed by 33 groups, the Palestinian territory, citing security. The block- innocent civilians, including those in the occupied including Uganda's Hope After Rape, Uganda ade around Gaza has been enforced by Israel and West Bank and Gaza'. The government recalled its Women and Children Organisation, Disabled along the Egyptian border since 2004. ambassador to Israel 3 June. Women's Network and Resource Organisation, The attack against aid workers from more than 30 SENEGAL: Uganda Joint Christian Council and Human Rights countries aboard the flotilla has incited civil society The Forum Social Sénégalais (FSS), a CSO based in Network-Uganda. groups and foreign ministries in Africa. Here is a Dakar, condemns the Israeli attack as a monstrous SIERRA LEONE: glimpse of the words and the movements: crime in a statement issued 2 June. The statement The Network Movement for Democracy Human EGYPT: labels Israel a terrorist state and calls on the UN to Rights, Coalition for Justice and Accountability and Dozens protest outside the foreign ministry in lift the Gaza blockade. FSS also asks that Israel be Sierra Leone Coalition for the ICC, all based in Si- Cairo. Many hold pictures of late president Gamal tried for crimes against humanity. erra Leone, are signatories of a joint statement of Abdel Nasser. Meanwhile Cairo-based Arab A union of CSOs is planning a march and demon- condemnation by 33 groups gathered in Kampala. League held an emergency session Tuesday to dis- stration 4 June in Dakar to end at the government CAMEROON: cuss the attack. foreign affairs ministry at Place de l'Indépendance. The Cameroon Coalition for Human Rights is a The Cairo Institute for Human Rights is a signatory MOROCCO: signatory of the 33-group Kampala statement. of a statement issued by 33 groups gathered in Hundreds of demonstrators took to the streets of DEMOCRATIC REPUBLIC OF CONGO: Kampala that comdemns the Israeli attack. Rabat 31 May in protest of the flotilla attack. The DRC-based groups Femme pour la Paix, le De- Egypt has condemned the violence and the govern- La Coalition Marocain Pour La Cour Penal Interna- veloppement et les Droit de l'Homme, Synergie des ment has opened its border with the Gaza Strip at tionale, a Moroccan CSO, is a signatory to a 33- ONG's Congolaise pour les Victimes and Ligue the Egyption-controlled Rafah point to allow for group statement issued out of Kampala that con- pour la Paix et les Droits de l'Homme are also sig- access to aid. The crossing, opened 2 June, will re- demns the Israeli attack. natories of the statement by 33 groups in Kampala. main open indefinitely. ALGERIA: NIGERIA: SOUTH AFRICA: A small group of demonstrators including intellec- The Muslim Public Affairs Centre in Nigeria con- A night vigil was held 1 June outside St George's tuals and journalists against the Israeli attack was demns the Israeli attack and in a statement said 'it Cathedral in Cape Town. Protestors called on the blocked 2 June by police in front of the US embassy is sad to see that in the face of the unspeakable international community to take action against Is- in Algiers. Algeria does not diplomatically recog- massacre that Israel committed [31 May], not for rael.[3] nise Israel, but demonstrations in the capital are the first time, the international community remains 'We need to do to Israel what the world did to banned. almost totally silent'. MPAC called on the Nigerian apartheid in South Africa,' said Salim Vally, chair- SUDAN: government to condemn 'the Israeli siege'. person of the Palestine Solidarity Committee of The government of Sudan issued a statement con- South Africa, in an interview with the Mail & demning Israel for the

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ploitative and dismissive approach that char- Are westerners out of touch when it acterized the relations of some countries with Africa in the past, and which did not recog- nize the potential of strategic partnerships," comes to Africa? Cargill says. "This is particularly important as more emerg- Think tank says ‘yes’ "Yet while conventional wisdom is that recent ing economies become interested in strength- growth has been largely driven by higher ening their engagement across Africa, since An influential British think tank has commodity prices, there is much evidence that they bring very different conceptions of what warned the West that it will lose out to emerg- increased consumption has played a central is acceptable business and diplomatic prac- ing nations unless it replaces its role, driven by and further driving the emer- tice." "humanitarian" approach to Africa with a gence in many African countries of a more as- more strategic focus on diplomatic and trade sertive middle class with dispos- relations. able wealth and an appetite for In a major report published on Thursday, the consumer goods." London-based Chatham House says the Cargill says this is highly signifi- emerging economies of Asia, Latin America cant because it points to a more Lauri and Africa are finding commercial and politi- critical and robust relationship cal opportunities in Africa that are being over- between governments and tax- looked by the continent's traditional partners. paying citizens, helping cement Chatham House is the name under which the good governance and pro-growth Royal Institute of International Affairs oper- reforms. Meat Market ates. "Africa seems increasingly to be The author of the report, Tom Cargill, Chat- the final frontier for economic Biggest Supplier of Fresh ham House's Africa programme assistant di- globalization; arguably it has al- rector, says countries such as the United King- ready become the most politically dom fail to engage seriously with Africa diplo- globalized," he says. Meat Products matically, and rely too heavily on "aid policies Cargill adds that although aid is that rarely deliver influence" and on "historical still crucially important to mil- 1696 Jane Street, Toronto, ON. ties that are fading." lions in Africa, business has He says the overwhelmingly humanitarian flourished in many countries in interest of many Western countries and tradi- the past decade as stability has 416-247-9899 tional partners had led to stereotyped percep- increased. tions of Africa in terms only of problems. "Nearly all governments in Africa Farm: 1800-443-3802 "These views are increasingly patronizing, re- now have a greater sense of what cursive, out of touch, and a deterrent to seri- they need to do to stimulate Burnt Goat Wholesalers / Half or Whole ous business interest," Cargill says. growth and are seeking the tools "Meanwhile the emerging economic powers of to do it," Cargill says. "The finan- the G20 see Africa in terms of opportunities – cial crisis may have contributed Beef, Goat, Chicken, Tripe... as a place in which to invest, gain market to instability in those countries share and win access to resources." that have long suffered from it, Special: Full Cow $800 Consumption Boosts Growth but the continent as a whole is set Cargill says that there have been dramatic im- to recover strongly as global Now Open Sunday: provements and prospects in Africa since the growth returns." 10 am till 4pm. end of the Cold War, when much of the conti- Developmental Focus Essential nent was mired in conflict and declining Cargill says that while a strong growth levels. diplomacy-led engagement is im- "Governance and growth rates have improved portant, a separate and strong to the point where Africa has been the fastest developmental focus is also criti- growing region of the world for some years. cal. Inflation has dropped, fiscal policy has im- "A purely or overwhelmingly proved and investment returns have in- diplomatic approach could bring creased," he says. back the kind of narrowly ex-

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From the African Press

On Ms Okoronkwo, the prosecution and defence essentially agreed that she, among other things, Nigeria: Again, handled the transfer of funds provided by James Ibori for the purchase of corporate vehicles for the Guernsey-based company, Zacon and Zetah. Ibori's mistress Finding itself against the ropes, the defence team argued the technicality that Okoronkwo was not guilty of "management of funds for the company" as stated in the prosecution's opening statement, Udoamaka adding that in "Company Law", "handling paper work" was not the same as management. When the judge accepted the prosecution's submis- Mr. Obama convicted sion, the defence lawyers argued at length with Leke Adeseri and Emma Ovuakporie of the Vanguard him, insisting that the original indictment, on nomic prosperity. London — A LONDON jury has found which the case had been conducted, was that of "It has been a bumpy road over these last 47 years Ms. Udoamaka Onuigbo, the mistress of former "management" rather than "handling of criminal but I'm very encouraged by the actions of (Kenyan) Governor of Delta State, Chief James Ibori, guilty funds." Parliament to issue a draft constitution," he said. on a three-count charge of money laundering. Meantime, Chairman of the Economic and Finan- Great honour She was found guilty in counts 2, 3, and 4. cial Crimes Commission, EFCC, Mrs. Farida Wa- The interview took place in the Diplomatic The jury in the Southwark Crown Court case num- ziri, has hailed the verdict of the London Court that Reception Room of the White House on the occa- ber T20087009 finally agreed, yesterday morning, found Christine Ibori-Ibie guilty of all charges of sion of the 47th Madaraka Day. Excerpts of it were and passed a guilty verdict on Udoamaka, after money laundering and mortgage fraud. aired by KBC TV on Thursday night. having acquitted her on one of the charges. Fielding questions from journalists in her office, During the interview, President Obama who traces However, Judge Christopher Hardy would, next Mrs. Waziri said: "I am delighted at the verdict but his roots to Kenya also announced his intention to Monday, sentence Christine Ibori-Ibie, who was that is the United Kingdom where justice reigns visit the country before his term expires. convicted on Tuesday in the same trial and and not Nigeria where such words as 'it is politi- "Well, I'm positive that before my service cally motivated' or 'witch-hunt' are frequently as President is completed I will visit Kenya again, used. Just see how justice was dispatched, unlike as President of the United States," he said. here where there are endless adjournments. In a statement on Friday, State House said: "We "The court process in Nigeria is endless and bails welcome the plans by President Obama to visit are given within 24 hours. There are cases I inher- Kenya. This will be a great honour and appreciate ited that started in 2005 still pending in our courts, the value he attaches to the government and peo- what can I do? I can't be the court and the judges at ple of Kenya. the same time. "We also welcome his positive comments "I have always advocated that we should have spe- on the reform agenda that President Kibaki has cial courts to try corruption cases. We have such prioritised with the added impetus as the country courts in Ghana. The corrupt have accepted that enters the final stretch to a new constitutional dis- we all are victims of corruption both the rich and pensation. The reform agenda is driven by the de- the poor in Nigeria. sire to bring about positive change to Kenyans. We "Those we are fighting sponsor all manners of sto- will heartily welcome President Obama to the land ries in the internet and newspapers criticizing me of his father and look forward to furthering our Ibori, right in this picture, was a high-roller and the new dimension now is direct attack on our in good times. He’s currently being held in relations during his tenure in office." men." On Monday next week, President Obama's top em- detention in Dubai awaiting extradition to Nigeria for economic crimes while he was issary, Vice-President Joe Biden arrives in Nairobi governor of Delta State of Ngeria en route to South Africa for the opening of the foot- Kenya: Obama's ball World Cup. Udoamaka Onuigbo. He will convey the president's support for A Crown Court source told Vanguard: "Udoamaka Hope for Country the constitution review as well as address the and Christine have been remanded in prison." But Walter Menya of the Nation shared interests in peace and stability in the region, sources said the women were planning to appeal Nairobi — US President Barack Obama particularly in Sudan and Somalia when he meets the ruling. spoke strongly of his wish to see a more prosper- President Mwai Kibaki and Prime Minister Raila The 12-member jury deliberating on the money ous Kenya in his first full interview dedicated to Odinga during the two-day stay in Kenya. laundering trial of Ibori's associates, Tuesday, the country of his father's birth. Shaky coalition found his sister, Christine Ibori-Ibie, guilty of all During the White House interview with a "But Joe Biden, his presence as my top em- charges of money laundering and mortgage fraud. Kenyan journalist, President Obama urged Ken- issary is the same one that I'm expressing today: The jury, however, acquitted Ibori's former assis- yans to seize "the moment" offered through the We want Kenya to succeed," President Obama said. tant, Adebimpe Pogoson, of the charges against referendum on a new constitution to put the post- Mr Obama chose Ghana rather than Kenya, his her. election violence behind it. father's homeland, for his first trip to Africa as In the dock were Ibori's mistress, Udoamaka In comments that were welcomed by Presi- President of the United States in May 2009 mainly Okoronkwo, his sister, Christine Ibori-Ibie, and his dent Kibaki on Friday, Mr Obama sent the strong- because of the slow pace of reforms then and a former personal aide, Bimpe Pogoson. Also facing est indication yet that he wanted to see Kenya's shaky coalition government. legal trouble are Ibori's lawyer, Bhadresh Gohil, constitution review come to a successful conclusion "In skipping Kenya, the first African American and his wife, Theresa Nkoyo-Ibori. and announced plans to visit the country before his president is signalling that he puts political values At the Southwark Crown Court presided over by term expires. over ancestral allegiances," the Nation wrote back Justice Christopher Harding, the former governor's But he clarified that the US was not push- then. defence lawyers could not refute the prosecution's ing for the Yes vote at the referendum slated for Foreign Affairs minister Moses Wetang'ula argument that Ms. Okoronkwo "handled paper August 4. The decision to vote Yes or No at the then denied that President Obama had snubbed work and transfer of funds" on behalf of Ibori us- referendum was upto Kenyans themselves, the the country. ing a company owned by the former governor in president said. Things look to have taken a different twist the UK Island of Guernsey. "I'm openly supporting the process. I'm not openly and the US views the country from a different per- The prosecution had earlier presented evidence to supporting the result," President Obama said. spective: The country is on the verge of getting a show that Ibori's sister, Christine, had, along with Advantage new constitution, the various commissions created one Mr. Desar and two others, been used by Ibori "I think it's up to the Kenyan people to after the post-election violence are up and running to criminally acquire various properties in the UK. make a decision about the direction of their coun- albeit some slowly. Unable to discredit the evidence, Christine Ibori's try but as a great friend of Kenya and as president Kenya has also given assurances to cooper- defence team sought to argue that she was actually of the United States, I am hoping that the Kenyan ate with the International Criminal Court in trying "hoodwinked" by the men into taking part in the people, through a process of self-determination, post-election chaos suspects. criminal deals. Even so, the prosecution countered are able to take advantage of this moment." President Obama hailed the leadership of President that there was no evidence that she was hood- He warned that the opponents of the constitution Kibaki and Mr Odinga for steering the reform winked, and that "even if Mr. Desar and others review were making a big mistake. process this far. were less than scrupulous in their dealings, the He urged Kenyans to take part in the forth- He said the two principals were "saying the right very fact does not necessarily exonerate Christine coming referendum to put the Kenyan governance things" and urged Kenyans to "take it to heart". Ibori since she had been proven to be part of the on a more solid footing that can move beyond eth- shady deals." nic violence, corruption and towards a path of eco- African World News 6/1/10 p 6

Business Advantages and disadvantages of incorporating Ken Green, a chartered accountant, special to the African World, examines issues in business for entrepreneurs weighing the option of incorporating their firms giving tips on the subject in this the first of many essays for our readers. Green will be a regular feature in the African World

If you carry on a business, there are many tax plan- tained in the corporation and invested. tion can only be offset against earnings in that cor- ning opportunities which become available to you Employee benefits poration. by simply incorporating. By transferring your busi- As an employee of your corporation, you can re- ness to a corporation, you become the shareholder ceive employment benefits that are deductible to Double Taxation and employee of a separate taxable entity. If the the corporation and eligible for special tax treat- A potential double taxation trap exists if an active corporation qualifies as a Small Business Corpora- ment in your hands. business earns too much profit. tion (SBC), other possibilities arise that will result Corporate profits from active business income in in tax benefits for you. This article discusses some Estate planning excess of $500,000 per year are taxed at full corpo- of these benefits as well as some disadvantages of rate rates. Integration of the personal and corporate incorporating: By setting up an appropriate share structure, you tax systems does not work at that rate, resulting in can hold and control the corporation while any an element of double taxation. Therefore all income Advantages increase in value accrues to shares held by your in excess of $500,000 should usually be paid out of children. This will minimize any tax liability aris- the corporation by way of salary or bonus to avoid Limited liability ing on your death. This can be accomplished by the this double taxation trap. If the corporation re- use a common estate planning technique called an quires the funds for operations, the income can be Unlike a sole proprietor who is fully liable for the "estate freeze" so long as your assets are held paid to the shareholder and then loaned back to the debts of the business, a shareholder is not responsi- through a corporation. This is a method of capping corporation. The salary receipt is, however, taxable ble for debts or other liabilities incurred by the cor- or "freezing" the value of your assets, while allow- to the shareholder. poration. Of course, a shareholder who personally ing future growth to accrue to other family mem- Administrative Costs guarantees corporate debts is liable up to the bers. Additional administrative costs are associated with amount guaranteed, and directors and officers can, incorporating, such as increased recordkeeping, in certain circumstances, be held liable for activities Income splitting corporate tax returns and other government filings. of the corporation. In general, however, your per- However, they may not represent a significant ad- sonal assets are protected from creditor claims and Your spouse and adult children may be able to ditional cost if your business is already a sizable any lawsuits or other liabilities arising in the corpo- subscribe for shares of the corporation and receive concern. ration. dividends from the profits of the business. In the case of your spouse, however, you'll need to ensure Other Disadvantages Small Business Deduction you don't run afoul of the corporate attribution rules. Due to the income-splitting tax (often re- A corporation is also subject to strict rules govern- Active business earnings of a Canadian-controlled ferred to as the kiddie tax), the benefits of splitting ing the taxation of shareholder benefits, such as private corporation are eligible for special reduced dividends are eliminated for minor children. shareholder loans or the use of a company car. rates of tax at both the federal and provincial levels. One of the major reasons a business incorpo- Capital gains exemption Another set of rules to be aware of when deciding rates is to obtain the benefit of the Small Business whether to incorporate your business is the Per- Deduction. This is a reduction in both federal and The other main tax advantage to incorporation of a sonal Services Business (PSB) rules. Generally, if provincial tax that is available to Canadian- small business is the ability to claim the $750,000 you provide services through your corporation and controlled private corporations (CCPCs) on their capital gains exemption on a sale of the business. if not for the corporation you could be considered active business income up to a set The complex rules provide, in effect, that to claim an employee of the entity to which you provide the Threshold – the small business limit. The small the exemption the shares must be of a Canadian- services, the corporation may be considered a per- business limit must be shared by associated corpo- controlled private corporation, at least 90% of the sonal services business – in other words you would rations – that is, corporations which are under assets of which are used in an active business car- be considered an "incorporated employee‖ common control and ownership. Therefore, if you ried on in Canada, or a holding company which hold businesses in separate corporations, your cor- owns such shares. Where other conditions are met, the PSB rules will porate Where the shares qualify, the owner can sell them apply so income from the PSB will not be eligible group will only be entitled to the low tax rate on and the first $750,000 of capital gains are exempt for the Small Business Deduction. As well, deduc- total income up to the small business limit. from tax. Note that the exemption applies to the tions claimed by the PSB will be restricted. Gener- individual and not the corporation. Once an owner ally, deductions are limited to salaries paid and Tax deferral on bonuses has claimed $750,000 of capital gains exemption, employment benefits provided to the incorporated By choosing an appropriate year-end, a bonus de- the exemption is no longer available on a sale of employee, plus certain other expenses that are declared by the corporation can be deducted in its other qualifying shares. ductible by an employee. Consequently, to fully current fiscal year, but not taxed to you until the benefit from incorporation, you following calendar year. Allowable business investment loss (ABIL) treat- must ensure that your business avoids the PSB ment rules. In most cases, this means that you have to be Tax deferral If your corporation qualifies as an SBC and the an independent contractor and not an incorporated Net income of a sole proprietorship or a partner- business should fail, you may be allowed to deduct employee. ship is taxed directly in the hands of the owner. an ABIL rather than a capital loss for the loss of However, a corporation is a separate taxpayer with your investment in shares or debt of the SBC. An Should I incorporate or not? its own tax rates. ABIL is calculated in the same manner as an allow- Because incorporation also means you are unable A corporation which is incorporated in Canada able capital loss in that only one-half of the loss is to use business losses to offset your personal in- and is controlled by private corporations or indi- allowed as a deduction. The difference is an ABIL come, it is generally advisable to defer incorpora- viduals who are Canadian residents will normally can be claimed as a deduction against other types tion until the business is profitable, unless there are qualify as a "Canadian-controlled private corpora- of income as opposed to a capital loss which can potentially large business liabilities which could tion". This status allows it to claim the small busi- only be applied against capital gains. If you have deplete your personal assets. In other words, if af- ness deduction, a reduction of the normal corpo- previously claimed a portion of your capital gains ter paying all your business and cost of living ex- rate income tax rate on the first $500,000 of a corpo- exemption, the ABIL may be converted into an or- penses, you still have additional cash left, it may be ration's annual taxable income earned from carry- dinary capital loss to the extent you claimed the advisable to incorporate your business. However, ing on an active business in Canada. exemption. it is important to seek the advice of your Chartered The tax advantage which the shareholder of such a Accountant to determine what business structure is corporation with active business income will enjoy appropriate for your business. is the ability to defer the payment of some income Disadvantages tax. A corporation eligible for the small business Ken Green, CA, MBA is a Chartered Account- deduction pays tax at about 25% on its first Losses Trapped ant specializing in providing accounting, tax $500,000 of taxable income. The remaining tax, Any business which is not operating at the break and business advisory services. Ken can be which is paid by the shareholders upon receipt of even point should not incorporate from a tax point reached via email at [email protected] can of view, although it may be sensible to incorporate dividends from the corporation, is deferred until also learn more about Ken’s professional when considering limiting liability. A loss earned dividends are paid. When dividends are paid the practice by visiting his website at balance of the tax is levied on the Shareholder. in a corporation cannot be transferred to its share- www.kengreen.ca The deferral is significant, especially for a taxpayer holders. Conversely, owners of an unincorporated in the top marginal tax bracket, and means that business would be able to utilize losses which they African World 6/1/10 p 8 approximately twice the funds are available for incurred against other sources of income or against investment, since in effect tax money is being re- future earnings. Losses which arise in a corpora-

Two Somali men held at JFK New York African World 6/1/10 p 9

Two men arrested at New York's John moon called for an independent inquiry into F Kennedy Airport have been charged with the incident. The government has ordered its conspiring to commit an act of international own investigation. terrorism. In a statement read out on television, Interior US authorities say they intended to join a ji- Minister Adolphe Lumanu said on Sunday hadist group in Somalia and kill American that President Kabila was "determined that all troops overseas. light be shed" on Mr Chebeya's killing.

Mohamed Mahmood Alessa, 20, and Carlos "To allow the enquiry to be conducted Eduardo Almonte, 24, were held before they smoothly, the national defence council de- could board separate flights to Egypt and then cided as a precaution to suspend inspector continue to Somalia. general John Numbi," the statement said.

They are due to appear on Monday in a fed- DR Congo is struggling to recover from years eral court in Newark, New Jersey. Chebeya: murdered? of civil war and insecurity. The UN has about US justice officials say state and federal law 20,000 peacekeepers there. enforcement agents have been investigating Recently, the UN Secretary General Ban Ki- Mr Alessa, of North Bergen, New Jersey, and Mr Almonte, of Elmwood Park, New Jersey, since 2006. Two men arrested at New York's John F Ken- nedy Airport have been charged with conspiring to commit an act of international terrorism. US authorities say they intended to join a ji- hadist group in Somalia and kill American troops overseas. Mohamed Mahmood Alessa, 20, and Carlos Eduardo Almonte, 24, were held before they could board separate flights to Egypt and then continue to Somalia. They are due to appear on Monday in a federal court in Newark, New Jersey. US justice officials say state and federal law enforcement agents have been investigating Mr Alessa, of North Bergen, New Jersey, and Mr Almonte, of Elmwood Park, New Jersey, since 2006.

DR Congo suspends police chief over Chebeya death The head of police in the Democ- ratic Republic of Congo has been sus- pended following the death of a human rights activist, officials say.

Three police officers have also been arrested and the president is determined to resolve the case, the interior minister said.

Floribert Chebeya, head of the group Voix des Sans Voix, was found dead in his car near Kinshasa on Wednesday.

He had reportedly been due to meet the police chief that evening.

Both the police and Voix des Sans Voix have said the meeting never took place.

'Precaution' The police chief, John Numbi, is seen as a close ally of President Joseph Kabila, the BBC's Thomas Fessy reports from the Con- golese capital, Kinshasa.

Activists say Mr Chebeya had received regular threats over the last 20 years. African World FOCUS: MAURITIUS 6/1/10 p 10 Round-trips and Indian hot money

rates as low at 3%, the financial services sector in tius have always managed to stall it. The Mauritius Mauritius would collapse. The cricket controversy link is a sophisticated and well-oiled mechanism India is changing its tax laws in a bid to introduce comes at a crucial time because the draft 2009 Di- which no one in government is willing to seriously greater transparency into its financial transactions rect Tax Code, which is now under debate and due investigate or alter. with Mauritius. to come into force in 2011, would abolish the benefits enshrined in the DTAA. In that sense, the DTC The cricket controversy relates to the secretive The aim is to stem 'round-tripping' of funds by would strengthen the Indian domestic financial ownership via Mauritius of at least one of the eight politicians, businessmen and criminal syndicates, sector by increasing the tax-take but India's private teams in the Indian Premier League, which plays a and assuage concerns about the unregulated and sector complains that such measures will deter in- truncated version of the traditional game with the 'hot' money which transits through the Mauritian vestors. competing sides playing for 20 overs each. Intelli- economy and into India. The licit and illicit finan- gence sources say that high-profile politicians and cial flows from Mauritius account for as much as First introduced in 2009 by the Indian National leading businessmen are involved in the IPL con- 90%, or tens of billions of dollars, of foreign direct Congress-led coalition government, the draft DTC troversy and it was 'highly unlikely' that anything investment in India each year. was a minor revolution in that it would allow the concrete or 'actionable' would emerge. DTC to trump all of India's 80-odd international Round-tripping via Mauritius involves the use of tax treaties. The move was criticised by consultan- Opposition politicians argue that the Indian econ- the 1983 Double Tax Avoidance Agreement cies like KPMG, which said it had 'shaken the faith omy would not have been hit as hard by the global (DTAA), a tax holiday advantage provided by of foreign investors'. recession had it not been for the P-Notes. 'The P- Mauritius and other tax havens, to re-route money Notes, which were "hot money", were then [after transferred illegally out of India. The illicit funds The revised tax code was open for debate in the the US financial crisis surfaced] just shipped out of are then transferred back to India as legitimate for- early part of 2010, but powerful business and po- India without any hindrance – to the tune of $60 eign investment in the Mumbai stock market via litical lobbies support the status quo, which lets bn. – in October 2008-January 2009, causing a stock participatory notes. These 'P-Notes' are used by unregulated money flow in from Mauritius. Ana- market crash domestically,' former Commerce overseas investors not registered with Indian regu- lysts said that the government was preparing to Minister Subramanian Swamy said. 'It is this that lators, allowing them to acquire shares anony- drop the clause that would allow the DTC to over- caused the financial crisis in India and not the US mously, which triggers allegations of widespread ride India's tax treaties. According to India's De- sub-prime loan defaults or exports drying up.' In money laundering. Much of the money invested partment of Industrial Policy and Promotion, late March, the Securities and Exchange Board of through P-Notes is legal and comes from sources around 43% or $35.2 bn. of the cumulative foreign India reported that money from P-Notes had like hedge funds, which seek to benefit from the fund flow of $81 bn. into India between April 2000 reached an all-time low – only 13% of assets under non-taxation of capital gains on Indian stocks and May 2009 was routed via Mauritius. This is management by foreign institutional investors, bought in Mauritius, but Indian officials worry be- despite India having similar DTAAs with nearly 77 down from 55% in June 2007. cause they cannot separate the good money from countries, including Britain, France and Germany. the bad. Foreign direct investment to India for the same After a series of Indian securities scams in 2000- nine-year period was $7.6 bn. from the United 2001 which exploited the Mauritian tax rules, the Questions over financial flows are hotly debated in States, $7.7 bn. from Britain and $2.1 bn. from Ger- FSC agreed to cooperate with the Securities and Indian politics. The opposition Hindu nationalist many. Exchange Board. High-profile trials were con- Bharatiya Janata Party claims that over $1.5 trillion ducted, but Mauritian promises of help were not – enough to wipe out India's external debt – has 'This potential hot money from Mauritius accounts kept and business continued as usual. Talk of been parked around the world in tax havens like for a little more than half the FDI inflow into India modifying the DTAA arose again in 2006 and Mau- Mauritius and 'significant sums' are routinely each year which can not only influence stocks but ritius said it would reform tax residence rules. round-tripped back into India, especially via the P- also take flight swiftly in turbulent times,' says fi- With the ongoing tax reform debate and the cricket Notes conduit. These funds have been particular nancial journalist Virendra Kapoor. Despite talk of controversy making headlines, there is pressure for targets of BJP members of Parliament Lal Krishna regulatory moves, no Indian government has taken change but – like previous scandals – that too will Advani andBhartruhari Mahtab, who told the serious moves to reform the tax arrangement with pass. (Correspondence With permission from Af- press that 'dirty money' was coming into the Mauritius since it is considered necessary to keep rica-Asia Confidential, Special to the African bourses through the back door. the stock market World ) indices high. Tax authorities are obviously concerned about the Consequently, a massive loss of revenue to the state on the huge booming stock sums of money that transit through Mauritius. Fed- market also fa- eral revenue intelligence officials told Africa-Asia cilitated the cor- Confidential that billions of dollars are transferred porate sector in daily from India to locations around the world via raising funds the informal but highly-organized hawala system. locally for ex- Hawala is based on a global network of money pansion through handlers. It again came into the spotlight when initial public linked to a failed truck bomb in Times Square, offerings, effec- New York City, on 1 May. The officials say that a tively spreading 'large proportion' of Indian hawala money ends up the 'feel-good in Mauritius ready for laundering. factor', Kapoor said. Market analysts say that most of the money that annually flows into India from Mauritius as foreign During the last direct investment enters the largely bullish Mum- decade, financial bai stock market. Indian investors, they said, pre- scandals have ferred dealing with Mauritius not only because of r e p e a t e d l y its geographical proximity but also because nearly arisen. Under 70% of its residents are ethnic Indians. Earlier this pressure from year, Mauritius tried to defend the DTAA. Milan the opposition, Meetarbhan, the Chief Executive of Mauritius's successive In- Financial Services Commission (FSC), argued that dian govern- Mauritius was not a tax haven, denied the preva- ments have all lence of round-tripping of funds to India and said declared their that his government was ready to address Indian intent to re-jig concerns about the DTAA. With hedge funds and DTAAs, particu- others able to set up in jurisdictions like Singapore larly that with and the Cayman Islands, officials in Port Louis Mauritius. How- have worked hard to maintain the tax treaty with ever, a group of Note: Prices subject Delhi. powerful busi- to change nessmen, politi- A squabble between India's cricket organisers has cians and finan- shed new light on the financial flows from Mauri- ciers in both In- tius. Without the 1983 DTAA and corporate tax dia and Mauri-

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