Donut wrote:This is a shock to me as I had based my installments on an estimate of tax owing and was of the understanding that if I got within $2,000 of being correct, there was no interest or penalty charged. I now seems this rule has changed.
I have filed an objection on the grounds that, because of the changes in tax rules such as increased tax free pension allowance, pension splitting etc, it is not realistic to expect one to be able to make totally accurate guestimates.
In the end, I know I will still have to pay the $50.
gossg wrote:So it's a $3K cutoff?
Arby wrote:- you are required to pay by installments if your net tax owing is more than $3000
Under proposed changes, you have to pay your income tax by instalments for 2008 if your net tax owing is more than $3,000:
in 2008; and
in either 2007 or 2006.
westinvest wrote:Does this sound right?
bribarb wrote:Dont the interest and penalty qualify as a deduction against investment income?
What if you have a son (minor) who receives a cheque from his great-grandmother payable directly to him as a gift (birthday). Can you open a mutual fund account at TD or some bank in his name and deposit it there?brucecohen wrote:Also there are "attribution" rules that curb your ability to avoid tax by giving money or property to family members. If you give investment money to your spouse, income earned on that money is attributed back to you for tax purposes. If you give investment money to a minor child, interest and dividends are attributed back to you for tax purposes but capital gains are not.
epson600 wrote:If i remember correctly.
Capital gains would be taxed to the minor.
Interest & divies would be taxed to the gift giver.
The grandparent opening up an "Informal Trust" should be enough to show who the minor is and who the trustee (gift giver) is. I dont think a minor would be allowed to open up a securities trading account by themselves.
If more than $10k is transferred between accounts, then FINTRAC must be notified by your bank
It depends on whose big brother you are concerned about. The banks decide what to report. So they must be watching. And they will err on the side of caution, iow report rather than not report.twa2w wrote:If more than $10k is transferred between accounts, then FINTRAC must be notified by your bank
Actually not true. Cash transactions of 10M or greater are reported or a series of cash transactions totalling 10M within a short period of time. These must be reproted and there is a penalty for not doing so.
Unusual transactions are reported but transfers between accounts are not tracked unless they are 'unusual'. This is up to the local branch to report and if the tranaction makes sense it won't likely get reported. Some transactions are flagged through predictive modelling triggers but this is not a common occurence.
Don't worry, big brother is not watching, yet.
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