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(Toronto Star)   Canada is no longer a haven for tax evasion   (thestar.com) divider line 28
    More: Obvious, United States, Finance Minister Jim Flaherty, advanced countries, Canada Revenue Agency, Community Code of Conduct, bank accounts, code of conducts, savings accounts  
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1013 clicks; posted to Business » on 06 Feb 2014 at 7:55 AM (44 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



28 Comments   (+0 »)
   
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2014-02-06 08:01:51 AM  
I didn't realize it was a tax haven to begin with. Almost 40% gonzo.
 
Juc
2014-02-06 08:33:05 AM  
I've a number of friends from the states that live up here, pay Canadian taxes and haven't been to the states in years, but because they're American citizens they still have to file with the irs.
It's a big pain in the ass and I can't think of many other countries that  inflict it on folks.
It's like if you're outside of the USA you need to pay a licensing fee to call yourself American..
 
2014-02-06 08:59:11 AM  
Don't worry.  our struggling, suffering wealthy citizens in america will find other places to hoard their hard stolen cash.  its what they and their hired tax lawyers do best.  after all, they love america. and patriotic too.
 
2014-02-06 09:24:54 AM  
Taxes are like 40% in Canada, and a lot lower in the US. So whats up? Double citizenship is one of the problems.

Here's what Ive seen, and it may or not may be generalized. Some woman has a baby, she crosses in the US to deliver it, making him a US citizen. Then comes back to Canada, living the life of luxury which is free healthcare and that 40% tax rate. Kid grows up, can cross border because of dual citizenship, and also can VOTE. Yes, that kid, once hes 18 ( or 21?) becomes a leftwing voter, because Canada is a left wing country.

Its called anchorvotingobamababies folks. And its a real worry for Republicans. So what do they do? They tax the hell out of someone whos a US citizen and is living outside his country. No IRS tax report?

No vote.
 
2014-02-06 09:40:04 AM  

Lonestar: Taxes are like 40% in Canada, and a lot lower in the US. So whats up? Double citizenship is one of the problems.

Here's what Ive seen, and it may or not may be generalized. Some woman has a baby, she crosses in the US to deliver it, making him a US citizen. Then comes back to Canada, living the life of luxury which is free healthcare and that 40% tax rate. Kid grows up, can cross border because of dual citizenship, and also can VOTE. Yes, that kid, once hes 18 ( or 21?) becomes a leftwing voter, because Canada is a left wing country.

Its called anchorvotingobamababies folks. And its a real worry for Republicans. So what do they do? They tax the hell out of someone whos a US citizen and is living outside his country. No IRS tax report?

No vote.


So how much does your head sweat in that 10 gallon tin-foil hat you're wearing?
 
2014-02-06 10:58:59 AM  

Tr0mBoNe: I didn't realize it was a tax haven to begin with. Almost 40% gonzo.


No it isn't.  Canadian Federal tax rates for 2014:

15% on the first $43,953 of taxable income, +
22% on the next $43,954 of taxable income (up to $87,907), +
26% on the next $48,363 of taxable income (up to $136,270), +
29% of taxable income over $136,270.

With some financial planning you can really lower your tax burden with IRA contributions (RRSPs here), deductions, and other investments.

Link: http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html
 
2014-02-06 11:26:12 AM  

shortymac: Tr0mBoNe: I didn't realize it was a tax haven to begin with. Almost 40% gonzo.

No it isn't.  Canadian Federal tax rates for 2014:

15% on the first $43,953 of taxable income, +
22% on the next $43,954 of taxable income (up to $87,907), +
26% on the next $48,363 of taxable income (up to $136,270), +
29% of taxable income over $136,270.

With some financial planning you can really lower your tax burden with IRA contributions (RRSPs here), deductions, and other investments.

Link: http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html


Total tax value dude... Check out how much Nova Scotia or Quebec takes off after the Feds get their bit.

I contribute enough to my RRSPs so in the end I don't have to pay anything, or get anything back. I'd rather put the chunk I'd invest in RRSPs into my tax free savings account (and then into the market in various different ways) which is why I don't go heavy on them.
 
2014-02-06 12:10:10 PM  

Tr0mBoNe: I'd rather put the chunk I'd invest in RRSPs into my tax free savings account (and then into the market in various different ways) which is why I don't go heavy on
them.


Canadian variant on the Scott Adams' (The Dilbert creator) financial advice:

1.  Get rid of debt.
2.  Fill your RRSP to the rim.*
3.  Fill your kids' RESP to the rim.
4.  Fill your TFSA.*
5.  Put 6 months' worth of salary in a "high interest/Low fees" savings account (e.g.: ING Direct).  This is your safety net, in case you lose your job.
6.  You can play in the market with the rest.

* This assumes that you are already in the top bracket and the tax deductions that the RRSP provide will lower your interest rate.  If you are currently unemployed, or in a low tax backet and have money to invest, then the TFSA is your best bet.
 
2014-02-06 12:11:39 PM  
Harper is already giving all sorts of details about Canadians to the U.S. already.

/the U.S.A. border stations even get electronic medical records of Canadians to decide whether that arrest 10 years ago, for metal instability, means you are a dangerous risk to let in to the U.S.A.
//that lady was pissed off.
///PM Harper(R) ignoring your Rights and calling you a pedophile if you dispute it.
 
2014-02-06 12:13:33 PM  
Frack.... Mental instability.

/Not enough hardcore Icelandic metal heads in Canada either.
 
2014-02-06 12:44:43 PM  

Flab: Tr0mBoNe: I'd rather put the chunk I'd invest in RRSPs into my tax free savings account (and then into the market in various different ways) which is why I don't go heavy on
them.

Canadian variant on the Scott Adams' (The Dilbert creator) financial advice:

1.  Get rid of debt.
2.  Fill your RRSP to the rim.*
3.  Fill your kids' RESP to the rim.
4.  Fill your TFSA.*
5.  Put 6 months' worth of salary in a "high interest/Low fees" savings account (e.g.: ING Direct).  This is your safety net, in case you lose your job.
6.  You can play in the market with the rest.

* This assumes that you are already in the top bracket and the tax deductions that the RRSP provide will lower your interest rate.  If you are currently unemployed, or in a low tax backet and have money to invest, then the TFSA is your best bet.


"... Will lower your tax rate"

/FTFM
 
2014-02-06 12:48:07 PM  

Tr0mBoNe: shortymac: Tr0mBoNe: I didn't realize it was a tax haven to begin with. Almost 40% gonzo.

No it isn't.  Canadian Federal tax rates for 2014:

15% on the first $43,953 of taxable income, +
22% on the next $43,954 of taxable income (up to $87,907), +
26% on the next $48,363 of taxable income (up to $136,270), +
29% of taxable income over $136,270.

With some financial planning you can really lower your tax burden with IRA contributions (RRSPs here), deductions, and other investments.

Link: http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

Total tax value dude... Check out how much Nova Scotia or Quebec takes off after the Feds get their bit.

I contribute enough to my RRSPs so in the end I don't have to pay anything, or get anything back. I'd rather put the chunk I'd invest in RRSPs into my tax free savings account (and then into the market in various different ways) which is why I don't go heavy on them.


But that's only in 2 provinces, not the whole of Canada. It's like using NYC or Massachusetts tax rates for all of the US.

Quebec sucks anyway, it's all hillbilly mafia frenchies.

The idea with RRSPs is that you put enough in them to get a refund THEN put the refund into the TFSA. Also, when you are young and almost broke start the TFSA, as soon as you hit 18.

The only godsend for me is Canada does spousal income splitting with RRSPs, so my RRSPs can be in my husband's name so I can say screw you to the US. (We're also going to get a pre-nup)

/tfsa is basically the ROTH IRA for Americans
//This is just a cash grab to screw over average citizens
///Don't see them bothering the Swiss and Cayman Islands...
 
2014-02-06 12:58:51 PM  

Flab: Tr0mBoNe: I'd rather put the chunk I'd invest in RRSPs into my tax free savings account (and then into the market in various different ways) which is why I don't go heavy on
them.

Canadian variant on the Scott Adams' (The Dilbert creator) financial advice:

1.  Get rid of debt.
2.  Fill your RRSP to the rim.*
3.  Fill your kids' RESP to the rim.
4.  Fill your TFSA.*
5.  Put 6 months' worth of salary in a "high interest/Low fees" savings account (e.g.: ING Direct).  This is your safety net, in case you lose your job.
6.  You can play in the market with the rest.

* This assumes that you are already in the top bracket and the tax deductions that the RRSP provide will lower your interest rate.  If you are currently unemployed, or in a low tax backet and have money to invest, then the TFSA is your best bet.


1. No debt
2. With ya
3. No kids
4. Done.
5. Done.
6. Done!

I do enough to get down a bracket but can't possibly get to an even lower one. The TFSA is a really good scam. It's over 31k right now and even if you've ignored it since it started you can still contribute the entire amount this year. It's not too late for this year as well... I can go grab a bunch of RRSPs now and still get my refund and still put it in my TFSA.

I kinda wish I had dependents, a home business, a rental property, native status, or other things that can be helpful at tax time...
 
2014-02-06 01:00:47 PM  

shortymac: But that's only in 2 provinces, not the whole of Canada.


All provinces have  provincial income tax.  Here are the rate.
 
2014-02-06 01:16:44 PM  

Flab: shortymac: But that's only in 2 provinces, not the whole of Canada.

All provinces have  provincial income tax.  Here are the rate.


But only those 2 can easily bump someone to a 40% tax rate.
 
2014-02-06 02:48:19 PM  

shortymac: Flab: shortymac: But that's only in 2 provinces, not the whole of Canada.

All provinces have  provincial income tax.  Here are the rate.

But only those 2 can easily bump someone to a 40% tax rate.


I only calculated for the the first two provinces listed in the link above, but:

The effective tax rate for a NFLD and Labrador resident is over 40% above $590,000/yr.
The effective tax rate for a PEI resident is over 40% above $250,000/yr.

Want me to continue?
 
2014-02-06 02:49:32 PM  
Addendum:  Neglecting tax deductions, of course.
 
2014-02-06 02:50:27 PM  

Lonestar: Yes, that kid, once hes 18 ( or 21?) becomes a leftwing voter, because Canada is a left wing country


Canada is perceived as a "left wing country" by very, very, very few countries. Most of those are dictatorships. A couple are not.
 
2014-02-06 03:15:40 PM  

Flab: Want me to continue?


since it was just cutting&pasting in Excel, I did it for Ontario as well. You'd need to have more than $1.1M in taxable income to have an effective tax rate over 40%.

The only province where you can not go over 40%, is Alberta.
 
2014-02-06 03:31:35 PM  

Flab: Flab: Want me to continue?

since it was just cutting&pasting in Excel, I did it for Ontario as well. You'd need to have more than $1.1M in taxable income to have an effective tax rate over 40%.

The only province where you can not go over 40%, is Alberta.


Don't forget GST/HST, fuel taxes, liquor taxes, etc, which are considerably higher in (almost?) all provinces than in (almost?) all states...
 
2014-02-06 03:51:26 PM  

slanderous: Flab: Flab: Want me to continue?

since it was just cutting&pasting in Excel, I did it for Ontario as well. You'd need to have more than $1.1M in taxable income to have an effective tax rate over 40%.

The only province where you can not go over 40%, is Alberta.

Don't forget GST/HST, fuel taxes, liquor taxes, etc, which are considerably higher in (almost?) all provinces than in (almost?) all states...


Don't get me started on how cheap everything is in the states. Up here, 25 smokes can hit $15 bucks if you buy good ones and it's $25 for a 12 pack of beer.
 
2014-02-06 05:11:11 PM  
If you want to evade US taxes or laws you have to go somewhere not on good terms with the US like best Korea or Iran or Sub Saharan Africa, or Russia.
 
2014-02-06 05:21:52 PM  

Tr0mBoNe: slanderous: Flab: Flab: Want me to continue?

since it was just cutting&pasting in Excel, I did it for Ontario as well. You'd need to have more than $1.1M in taxable income to have an effective tax rate over 40%.

The only province where you can not go over 40%, is Alberta.

Don't forget GST/HST, fuel taxes, liquor taxes, etc, which are considerably higher in (almost?) all provinces than in (almost?) all states...

Don't get me started on how cheap everything is in the states. Up here, 25 smokes can hit $15 bucks if you buy good ones and it's $25 for a 12 pack of beer.


Yes, but to get new lungs or a liver? You need to hire a hitman with excellent aim.
 
2014-02-06 05:49:58 PM  
I will have to see the changes made to the IGA since last year. For those of us who are dual citizens, holding only a c
Canadian passport, the agreement made it technically illegal to enter the US.

The Canadian government is really screwing with about a million people in the limbo land where the IRS doesn't recognize dual citizenship. Born in Canada, never worked or lived a day in the U.S., but the IRS wants me to report accounts under threat of heavy fines. Yes, they are now saying there are exemptions for Canadian bank reporting, but this was almost an afterthought. I am not trusting the numbnuts who have got us this far...

...And F(u)BAR is an all too appropriate name for some of this bs legislation.
 
2014-02-06 07:12:16 PM  

Flab: Flab: Want me to continue?

since it was just cutting&pasting in Excel, I did it for Ontario as well. You'd need to have more than $1.1M in taxable income to have an effective tax rate over 40%.

The only province where you can not go over 40%, is Alberta.


okay, for all of your calculations you'd have to be making a considerable sum of money before you hit 40%. The average Canadian will NEVER hit that level.
 
2014-02-06 07:28:55 PM  

Tr0mBoNe: slanderous: Flab: Flab: Want me to continue?

since it was just cutting&pasting in Excel, I did it for Ontario as well. You'd need to have more than $1.1M in taxable income to have an effective tax rate over 40%.

The only province where you can not go over 40%, is Alberta.

Don't forget GST/HST, fuel taxes, liquor taxes, etc, which are considerably higher in (almost?) all provinces than in (almost?) all states...

Don't get me started on how cheap everything is in the states. Up here, 25 smokes can hit $15 bucks if you buy good ones and it's $25 for a 12 pack of beer.


Not everything is cheap in the states, in Buffalo yes (because it's an economically depressed craphole) but not everywhere.

I'm originally from the US, Philly area, I've gone back a couple of times and it's pretty much the same prices with the exception of: gas, cigarettes, booze, cheese, and books.

Granted in PA it's 6% sales tax, but you get hosed on Health Insurance costs, if you are lucky enough to get them partially paid off by your work at all. Self-Employed? Forget it.

According to the AARP, if you make about 50k a year, you're spending about 3,500 on healthcare or 7% of income WITH INSURANCE.

Link:  http://www.aarp.org/content/dam/aarp/research/public_policy_institute / security/2013/impact-of-rising-healthcare-costs-AARP-ppi-sec.pdf

/Spent a good part of my young life without healthcare in the US
//Canadian Farkers don't know how lucky you have it
///Wait times are roughly the same in Canada and the US with insurance, minus some particular areas
 
2014-02-06 08:04:51 PM  

sheep snorter: Harper is already giving all sorts of details about Canadians to the U.S. already.

/the U.S.A. border stations even get electronic medical records of Canadians to decide whether that arrest 10 years ago, for metal instability, means you are a dangerous risk to let in to the U.S.A.
//that lady was pissed off.
///PM Harper(R) ignoring your Rights and calling you a pedophile if you dispute it.


Well, sure, you don't want people falling apart after they cross the border.

/stem the mechanuck tide!
 
2014-02-07 08:07:06 AM  

shortymac: and it's pretty much the same prices with the exception of: gas, cigarettes, booze, cheese, and books.


So...  everything?
 
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