Earning money and sitting on it doesn't hurt anyone. But in buying a nice life in Canada, you are in part buying what the government provides.
At first, I was also going to post about how Canada uses a residential income tax system: even if you’re a citizen, you don’t pay income tax if you live and work overseas. But it turns out where your spouse lives is relevant for determining residency. [1]
Regardless of whether the “astronaut” dads are evading taxes, the bigger question is about designing a tax system that’s both fair and easy to enforce.
[1]: https://www.canada.ca/en/revenue-agency/services/tax/interna...
Sales taxes are small and regressive.
It's a monster difference.
Variable rate sales tax on the other hand is more progressive than any income tax.
Like the more I spent the less I pay in sales tax? I don't think so.
Low income people buy less things and pay lower sales tax proportionally. Wealthy people spend more on luxurious goods and pay way higher tax in absolute numbers. Everyone is hurt the same.
On top of that, necessities (food, medication, books) are usually exempt from the sales tax.
Agree that this isn't a great way to look at things. And that (as you say) there are often different rates of sales tax on potatoes vs yachts.
Why would the father pay taxes in Canada when he lives and works in HK (or anywhere else) and (likely) is not a Canadian tax resident? It doesn't make any sense.
After all they pay local taxes in Canada while spending (GST, PST, property tax etc.)