Why we need our Tax Agency
Most of the tax payers are bitter about paying tax. It is understandable, if you are paying 44% of your income for tax. But we should all be happy and proud to pay our fare share of tax. Tax Agencies who collect our tax are very important part of the modern economic system. The clip below might help you to get an appreciation for tax collectors.
US FATCA explained for US Persons
Must Comply – Sam Elahee
I have been getting questions from US Persons living in Canada. Most of them are not updated with the US tax law changes in the last five years.
First there was OVDI. Come clean or IRS will take 50% of your assets. File FBAR with your personal financial asset information. FBAR can only be filed through a secure online form. No more paper filing of FBAR.
Now FATCA is in place. Its a wide net of IRS tax laws affecting every country and their financial institution to collect tax revenue from US Persons. Its forcing foreign entities to work as an agent of IRS, with the threat that if they don’t comply, 30% of their revenue sourced in USA will be held by IRS. This is a complex process.
If you a US Person don’t report your off shore account information under FBAR and your bank reports it to IRS under FATCA, all your financial holding is in risk of getting frozen or seized by your foreign bank under the FATCA laws of IRS. Until you can settle the demand of IRS, you won’t have any access to your funds.
So, if you are a US Person, you must comply with IRS FATCA and FBAR laws. It is advised that you work with a tax professional who is expert at US tax laws.
I strongly advise to watch this informative video clip.
FATCA EXPLAINED – Sam Elahee, International Tax Advisor
Universal Child Care Benefit (UCCB) Changes in 2015
Taxes are very complex, even you might hear otherwise from tax software vendors. Here is a simple example trying to explain the changes in Universal Child Care Benefit (UCCB) as promised by Prime Minister coming into effect in 2015.
UCCB is a taxable benefit and you should file your taxes every year and report this benefit on your tax return.
Source of this educational video is Safe Pacific Financial
Canada Revenue Agency Income Tax
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Comments Off on Year End Tax Tips – Pay Less Tax in 2014
Year End Tax Tips – Pay Less Tax in 2014
While 99% of us are busy shopping, eating and drinking and complaining about the sorry state of our finances, 1% of people (the wealthy ones) are meeting with their tax advisors and planning all out, how to minimize their taxes and maximize their after tax income. You see, in Canada for every $100 taxable income reduction by tax planning you save almost $44 in taxes. You can easily pay off your holiday shopping bill with just few simple year end tax saving strategy.
Tax planning is a year around activity. But if you ignored it, all year long, this last few days of the year, where you must take action to minimize your 2014 tax.
So, here are some ideas. more »
Question about FATCA Answered and CRA Backstabbing
FATCA (U.S. Foreign Account Tax Compliance Act) is about compliance of US Tax Law. USA citizens abroad have been negligent (ignorant) about USA TAX LAWS, which states that all “U.S. persons” are liable for U.S. tax, regardless of where they live in the world. Being ignorant about the Tax Law is not an excuse, if you are a U.S. person living abroad, from your tax obligation to USA.
Are you a U.S. Person for tax purposes? This is the first question you have to answer regardless if you have lived in USA or not. You are a U.S. Person, with Tax obligation to USA, if you were born in USA and/or have a USA birth certificate, you have a USA passport and/or green card, or you have a USA Social Security Number (SSN). By law, you must file your annual tax to IRS, no matter where you live in the world. If you do not, you are breaking the USA tax law.
FATCA is a tool, implemented by USA lawmakers to bring out the U.S. persons, who are breaking the USA tax laws. So, if you do not like FATCA and it is applicable to you, only way to get out of this is give up/surrender/relinquish your USA citizenship/passport. Claiming ignorance or stating that you have never been in the USA will not get you any result.
How the FATCA is implemented that is of concern to many Canadians as well as dual Canada/USA citizens. more »