bankruptcy/tax evasion/relief
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piloterror
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bankruptcy/tax evasion/relief
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Last edited by piloterror on Wed Dec 19, 2012 10:13 am, edited 1 time in total.
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Cat Driver
- Top Poster
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I understand your frustrations and the validity of the question.
Unfortunately most of us on here would not wish to give advise such as you are asking for in a public forum for obvious reasons...
...However as to how to avoid paying taxes to the Canadian Government your best sourse of help would be to have a chat with Paul Martin.
Cat
Unfortunately most of us on here would not wish to give advise such as you are asking for in a public forum for obvious reasons...
...However as to how to avoid paying taxes to the Canadian Government your best sourse of help would be to have a chat with Paul Martin.
Cat
The hardest thing about flying is knowing when to say no
After over a half a century of flying no one ever died because of my decision not to fly.
After over a half a century of flying no one ever died because of my decision not to fly.
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speedlimit
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groundtoflightdeck
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- Joined: Sun Feb 15, 2004 9:56 pm
Piloterror, there are lots of things you can do legally to help. I have a rental property that allows lots of write off's, start a home based small business such as an Intenet business. Get a prospectors licence and start prospecting. Lots of good write offs in that field.
Remember in the governments eyes you can write off losses as long as there is "reasonable expectations for profit". I always had reasonable expectations of finding gold lava seeping out of some rock while I was wondering through the bush during hunting season on my ATV or trolling in my fishing boat along some rock shoreline. Of course it hasn't yet happened but I'm sure I'll find the mother lode one of these years.
Remember in the governments eyes you can write off losses as long as there is "reasonable expectations for profit". I always had reasonable expectations of finding gold lava seeping out of some rock while I was wondering through the bush during hunting season on my ATV or trolling in my fishing boat along some rock shoreline. Of course it hasn't yet happened but I'm sure I'll find the mother lode one of these years.
You Can Love An Airplane All You Want, But Remember, It Will Never Love You Back!
CLGuy,
I must disagree. The idea behind rental properties/business is turn a profit. As soon as you turn a profit you pay tax, and if you lose money, you don't pay taxes. You can write stuff off if it's legitimite, but then, that just comes off your bottom line. I have had both rental property and small business (one successful, one not), and in the end the successful one gets taxed, and the other one costs you all your savings. The best thing to do is move to country thatr doesn't punish success as much as Canada does.
I must disagree. The idea behind rental properties/business is turn a profit. As soon as you turn a profit you pay tax, and if you lose money, you don't pay taxes. You can write stuff off if it's legitimite, but then, that just comes off your bottom line. I have had both rental property and small business (one successful, one not), and in the end the successful one gets taxed, and the other one costs you all your savings. The best thing to do is move to country thatr doesn't punish success as much as Canada does.
Bebe, you are correct about moving to a more tax friendlier country but the orginal post was dealing within Canada. My experiences were to keep the business broke and never show a profit. You are correct the more profit you make the more tax you pay and that can be a big problem but a good accountant knows how to keep a company broke. Example paying family members wages, write downs etc. I don't know what business you were in but mine were always broke.
You Can Love An Airplane All You Want, But Remember, It Will Never Love You Back!
Some of my experiance of working overseas these long years.
Revenue Canada (RC) states that all residents of Canada will pay tax on WORLD WIDE INCOME. doesn't matter where you made the money.
If you just bugger off overseas and keep your resident status they take the position you not a resident of another country so you must be a resident of Canada so will happily take your money and ask for more.
So there are two paths. Keep your residency in Canada and get a tax paid statement from the country you are working - the taxes paid are a deduction on your income.- or become a non resident.
There is a tax break (and keep Cdn residency status) if you work rseas for an accredited (sp) relief organization, and it is a healthy deduction - around 70% of monies earned from the relief agency.
Non residency. there is a RC web page which asks you a series of questions to establish if you are a bonified non resident. Questions like your permenant address overseas, do you have a medical plan overseas.bank accounts overseas, membership still active here - basically - what are your ties to Canada. What you have to do is convince RC that you have left Canada and do not intend to return ever (or in the near future). You can keep property (as long as its on long term lease) and some ties, but if there are too many (in their eyes ) you pay as a resident. Remember, you can own property in Canada without having recidency, look at all the US citizens that own property here. But you cannot stay in Canada for over 180 days or you are considered a resident (even the yanks)
Here is how to look at it. If you work overseas and are a non resident and get paid say 2500usd/mo. all in ( transport and accomidation provided) this equates to around 3750cdn/mo. to make 3750cdn/mo-take home - you have to make 5000-6000cdn/mo here.
This is the monitary outlook only, I won't get into the living conditions, paid leave, airline scams, duty free cars, banking etc.
Also I am not an income tax expert by a long shot so research all this info for yourself and your situation.
Good luck
PITA
Revenue Canada (RC) states that all residents of Canada will pay tax on WORLD WIDE INCOME. doesn't matter where you made the money.
If you just bugger off overseas and keep your resident status they take the position you not a resident of another country so you must be a resident of Canada so will happily take your money and ask for more.
So there are two paths. Keep your residency in Canada and get a tax paid statement from the country you are working - the taxes paid are a deduction on your income.- or become a non resident.
There is a tax break (and keep Cdn residency status) if you work rseas for an accredited (sp) relief organization, and it is a healthy deduction - around 70% of monies earned from the relief agency.
Non residency. there is a RC web page which asks you a series of questions to establish if you are a bonified non resident. Questions like your permenant address overseas, do you have a medical plan overseas.bank accounts overseas, membership still active here - basically - what are your ties to Canada. What you have to do is convince RC that you have left Canada and do not intend to return ever (or in the near future). You can keep property (as long as its on long term lease) and some ties, but if there are too many (in their eyes ) you pay as a resident. Remember, you can own property in Canada without having recidency, look at all the US citizens that own property here. But you cannot stay in Canada for over 180 days or you are considered a resident (even the yanks)
Here is how to look at it. If you work overseas and are a non resident and get paid say 2500usd/mo. all in ( transport and accomidation provided) this equates to around 3750cdn/mo. to make 3750cdn/mo-take home - you have to make 5000-6000cdn/mo here.
This is the monitary outlook only, I won't get into the living conditions, paid leave, airline scams, duty free cars, banking etc.
Also I am not an income tax expert by a long shot so research all this info for yourself and your situation.
Good luck
PITA
Speedlimit, take your meds.
The government has learned how to pluck the goose without any hissing - we Canadians will roll over for every tax rise they throw at us and we have some of the worst systems anywhere, except for the terrific gun registry which has benefitted Canadians so much. Try driving across the country and take a look at the highways that your gas taxes have bought you - enough to gag a camel.
I believe it is your civic duty to avoid taxes - if they got less or if we complained a bit while they bent us over perhaps they would be more careful how they spent it.
Noticed how all those fuel surcharges are not being accounted for as price rises? Clever government does then not have to include them in the GDP and 'inflation' is not affected, then indexed pensions and that ilk are not required to rise, and the extra gas revenue goes right in their pockets.
If you find a better scheme to stop getting screwed, share it!
The government has learned how to pluck the goose without any hissing - we Canadians will roll over for every tax rise they throw at us and we have some of the worst systems anywhere, except for the terrific gun registry which has benefitted Canadians so much. Try driving across the country and take a look at the highways that your gas taxes have bought you - enough to gag a camel.
I believe it is your civic duty to avoid taxes - if they got less or if we complained a bit while they bent us over perhaps they would be more careful how they spent it.
Noticed how all those fuel surcharges are not being accounted for as price rises? Clever government does then not have to include them in the GDP and 'inflation' is not affected, then indexed pensions and that ilk are not required to rise, and the extra gas revenue goes right in their pockets.
If you find a better scheme to stop getting screwed, share it!
"What's it doing now?"
"Fly low and slow and throttle back in the turns."
"Fly low and slow and throttle back in the turns."
