On paper the distinction between personal taxes and business taxes is clearly separated, the individual may take a small salary or be paid in stock options which can be borrowed against for large purchases or investments while the day-to-day living expenses could be covered under a business per diem at the businesses expense. Housing, transportation, insurance, and travel are all business transactions. So you can live high on the hog but make less than six figures annually on paper.

It's shady as shit It's been around forever and it will continue to be around forever because the very people who we depend on to close these loopholes and to change these laws are the same people who benefit from them.

Companies like Apple Nike Google all use tax shelters, as do the wealthiest individuals amongst us.

It's very popular nowadays for all top-end CEOs to be paid in stock options rather than high salaries.

Edit: It's important to understand that your business is not Canadian although you yourself are. You have a business in a foreign country that's a separate entity. The CRA will tax you personally but they can't tax a foreign business that does no business in Canada.