Tax Time

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A place for serious discussion on any non-religious topic

Tax Time

Postby Pondero » March 1st, 2016, 10:28 am

A time of great stress for accountants who prepare tax returns for their clients.It is the busiest time of the year for them from now until April 30 th. (The deadline for individual tax returns to be in) ..Just think many millions of tax returns will be sent in to mainly the town of Sudbury Ontario for processing. If you have any questions to ask of the Canada Revenue Agency, you dial a number to speak to them. And good luck getting through -, they are very busy at this time.
Let nothing disturb you.
Let nothing make you afraid.
All things are passing.
God alone never changes.
Patience gains all things.
If you have God you will want for nothing.
God alone suffices.

— St. Teresa, The bookmark of Teresa of Ávila, [28]
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Re: Tax Time

Postby Pondero » March 1st, 2016, 10:42 am

Briefly this is an add-on to my first post. The CRA has this wonderful book called the Income Tax Act which explains among other things how you calculate dividend tax credits. They don' t give you this information, you have to dig for it so
look at s 82(1)(b)(ii) and s.121 for answers. Only an accountant would bother.The CRA only tells the individual the basics* where on the tax form to put the figures. The average guy has no idea, hence the need for trained people to do the job for them.

EDIT.* By basics I mean the CRA tells you to multiply the taxable eligible dividends by 15.0198% and they don't say where that figure comes from. You won't find it in the Income Tax Act either. You have to boost up the real dividend received by 38% s 82. Then to s.121 where you multiply the 38% of real dividend by 6/11.
For example a $100 dividend has a dividend tax credit of $20.73.
Doing it both ways you get the same result.

$138 X 15.0198%. = $20.73 (the percentage given out by the CRA)

$38 X 6/11 = $20 .73 (following the Income Tax Act ).

The ITA changes these percentages every few years. And they are in the Act. I would have thought they would have been changed by Regulation as it used to be and probably still is that you have to go back to Parliament to change an Act of Parliament whereas Regulations can be changed by bureaucrats. In fact that is the purpose of Regulations. Maybe things have changed in some manner that I am not aware of :eek:

I forgot to say that the 'boosted up dividend ' of $138 is part of your taxable income and the tax credit of $20.73 reduces the tax you pay. I am told that as the company has paid tax on your dividend and as you own part of the company it would be unfair to tax you twice so they give you a slight reduction with a dividend tax credit in the amount of tax you pay as an individual.
Let nothing disturb you.
Let nothing make you afraid.
All things are passing.
God alone never changes.
Patience gains all things.
If you have God you will want for nothing.
God alone suffices.

— St. Teresa, The bookmark of Teresa of Ávila, [28]
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Re: Tax Time

Postby Pondero » April 9th, 2016, 8:55 pm

There has been a lot of discussion since the release of millions of documents of companies offshore called the Panama Papers. In Canada most of it has been dismissed with the statement just because people register their Canadian companies abroaded in tax havens doesn' t mean they are doing anything wrong.
They then go on to make the distinction between Tax Avoidance , which is legal and Tax Evasion which is. Illegal.
What a load of codswallop this distinction is.When prominent Canadian companies can pay a modest departure tax and move their companies (numbered of course) to Isle of Man , Bahamas and Panama and others they no longer pay Canadian tax on their billions of profit .
It may be legal but it is morally wrong. It results in higher taxes for those who live and work in Canada and do not do this.
We become poorer and poorer because of it.
It was a Canadian lawyer who invented the numbered company.
Let nothing disturb you.
Let nothing make you afraid.
All things are passing.
God alone never changes.
Patience gains all things.
If you have God you will want for nothing.
God alone suffices.

— St. Teresa, The bookmark of Teresa of Ávila, [28]
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Re: Tax Time

Postby Pondero » April 10th, 2016, 10:13 am

I am forgetting Canada's favorite place for hiding offshore money- The Cayman Islands
Nothing will be done about changing our laws of course under the Liberal government or the earlier Conservative government.
It is still morally wrong even if it is legal.
Let nothing disturb you.
Let nothing make you afraid.
All things are passing.
God alone never changes.
Patience gains all things.
If you have God you will want for nothing.
God alone suffices.

— St. Teresa, The bookmark of Teresa of Ávila, [28]
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Re: Tax Time

Postby Serenjen » April 19th, 2016, 10:47 am

Mr NB is in trouble with the tax man. They say he didn't pay enough in 2013-14 :shock: It all relates to the company he worked for going bust. They were taken over by a bunch of shady characters.

They have worked out he earned £4000 more than he paid tax on. They want their percentage of that, plus interest and a fine :shock:

I've been through the figures and I think the tax people have made a mistake. They won't back down. In addition he overpaid tax in 2014-15 by £800 but they won't pay that out since he 'owes' money.

I have been through everything carefully, I'm sure we're right and we have spent a fortune posting various bits of proof. It's more the attitude of the tax people that annoys me than the money. Not that we have the money to pay the excess/fine/interest.
It’s real easy to say you’re 100% against abortion when you’ll never have to make that decision.
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Re: Tax Time

Postby Pondero » April 19th, 2016, 10:55 am

Ask to see the auditors supervisor and discuss it .If you still think they have made a mistake start the appeal process . That (over here) allows you 90 days if my memory is correct. Surely the Appeal form is on the internet. Again here in Canada the Appeal section is separate from the auditing section and you get a fair hearing. If still not satisfied take them to court. The penalty and interest (here) can be forgiven if there are extenuating circumstances. And especially if the CRA was tardy or in error.

EDIT.
It is all on the internet serenjen. They like you to consider ADR (alternative dispute resolution) before going to the first level appeal process. It is different from the Canadian method. However. As no-one likes to lose an Appeal they would prefer you to consider ADR.
Let nothing disturb you.
Let nothing make you afraid.
All things are passing.
God alone never changes.
Patience gains all things.
If you have God you will want for nothing.
God alone suffices.

— St. Teresa, The bookmark of Teresa of Ávila, [28]
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Re: Tax Time

Postby Serenjen » April 19th, 2016, 7:32 pm

Thanks Pondy. We are at 'compliance stage'. They are being slow and repeating the same information each time to support their claim. However, Me NB is also dragging his feet by not hassling them. I'd be on the phone every day!
It’s real easy to say you’re 100% against abortion when you’ll never have to make that decision.
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Re: Tax Time

Postby Pondero » April 19th, 2016, 10:16 pm

HHMRC may offer you a review, or you can request one. The review will be carried out by an officer who wasn’t involved in the original decision.

The review will usually take up to 45 days and you’ll be told the outcome. If it’s going to take longer, HMRC will contact you to arrange an extension.

What happens after the review
If you disagree with the outcome of the review, you can ask the tax tribunal to hear your appeal. You must do this within 30 days of the review decision.


This is from the inland revenue's own website.(If you are at the compliance stage you are still under audit unless they have made their decision and told you so in writing.In which case ask for a review, follow procedures. I could be wrong because England is not Canada, but that is how I understand things until corrected.)
The best of British luck :yahoo:
Let nothing disturb you.
Let nothing make you afraid.
All things are passing.
God alone never changes.
Patience gains all things.
If you have God you will want for nothing.
God alone suffices.

— St. Teresa, The bookmark of Teresa of Ávila, [28]
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Posts: 12744
Joined: October 25th, 2007, 11:03 am
Location: Etobicoke,Ontario, Canada

Re: Tax Time

Postby Pondero » April 22nd, 2016, 3:05 pm

I filed a Notice of Objection the other day against part of an assessment (against me ) by the CRA. Nothing odd about that except that they have this new fangled technology now called "MYACCOUNT" in which I filled out the details. They will look at it within 30 days. The funny thing is that the details of my objection have disappeared.?? It is only a small amount to be sure.
Anyway I am fed up with the new technology. I know what it was about, a late installment penalty of $91 somehing, so I will remind them after 30 days if they don't take action. I really think the CRA is overwhelmed by computerized gobbledigook, and so am I :( :(
Let nothing disturb you.
Let nothing make you afraid.
All things are passing.
God alone never changes.
Patience gains all things.
If you have God you will want for nothing.
God alone suffices.

— St. Teresa, The bookmark of Teresa of Ávila, [28]
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Posts: 12744
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Location: Etobicoke,Ontario, Canada

Re: Tax Time

Postby Serenjen » April 22nd, 2016, 5:07 pm

We won :D :wave: :yahoo: :amen:
It’s real easy to say you’re 100% against abortion when you’ll never have to make that decision.
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