I am not an American citizen. This story is Canadian.

No. You called it tax evasion. I'm saying it isn't. Fabrication of paperwork to close on a house is fraud. We agree.

Well unfortunately in today's society it seems the only real way to get ahead is to do things like this. It is absolutely a "Have cake and eat it to" scenario. I'm not advocating for any of this, but I understand where it comes from.

They are not evading taxes. They pay their business taxes, they just don't draw a salary. Nothing illegal there. Like it or not, this is a very real problem that business for self individuals face. Also, like it or not, I am more educated on this topic then 99.9% of people.

Is this fraud? Yes it is. Is it that bad? No it isn't. Essentially what's happening here is a home buyer owns a business. This business generates monthly cashflow but the owner does not take a salary. If you do not take a salary, you have no taxable income. No taxable income, "A" banks won't accept you. In theory, a business owner could make a million dollars a month. However, because they do not show any income, they are SOL.

This is not the type of fraud used to hurt anyone. This is the type of fraud that is used to go around bureaucratic nonsense. The mortgage will be paid because the funds needed are there.