Uma História: a Palavra do Ano do Dicionário.
Palavra do ano.
Nossa escolha de Palavra do Ano serve como um símbolo dos eventos mais significativos de cada ano e das tendências de pesquisa. É uma oportunidade para refletirmos sobre a linguagem e as ideias que representam a cada ano. Então, dê um passeio pela estrada da memória para lembrar de todas as nossas seleções anteriores da Palavra do Ano.
Não foi moda, engraçado, nem foi cunhado no Twitter, mas achamos que a mudança contou uma história real sobre como nossos usuários definiram 2010. Ao contrário de 2008, a mudança não era mais um slogan de campanha. Mas o termo ainda tinha muito peso. Aqui está um trecho do nosso anúncio da Palavra do Ano em 2010:
O debate nacional pode ser resumido pela pergunta: Nos últimos dois anos, houve mudanças suficientes? Tem havido muito? Enquanto isso, muitos americanos continuam enfrentando mudanças em suas casas, contas bancárias e empregos. Só o tempo dirá se a última onda de mudanças pela qual os americanos votaram nas eleições intermediárias resultará em um resultado negativo ou positivo.
Tergiversar.
Esta palavra rara foi escolhida para representar 2011 porque descreveu muito do mundo ao nosso redor. Tergiversar significa "mudar repetidamente a atitude ou opiniões de uma pessoa em relação a uma causa, assunto, etc." Os editores do dicionário viram o mercado de ações, os grupos políticos e a opinião pública passarem por uma montanha-russa de mudanças ao longo de 2011. E assim, nomeamos tergiversar a Palavra do Ano de 2011.
Em um ano conhecido pelo movimento Occupy e o que ficou conhecido como a Primavera Árabe, nossos lexicógrafos escolheram a tag como sua Palavra do Ano de 2012. Aqui está um trecho do nosso lançamento que dá uma boa explicação para a nossa escolha:
2012 viu as campanhas políticas mais caras e alguns dos eventos climáticos mais extremos da história da humanidade, desde enchentes na Austrália a ciclones na China, ao furacão Sandy e muitos outros.
Ficamos sérios em 2013. A privacidade de todos estava naquele ano, desde a revelação de Edward Snowden do Project PRISM até a chegada do Google Glass. Aqui está um trecho do nosso anúncio em 2013:
Muitos de nós abraçamos as mídias sociais, optando por oferecer informações íntimas e fotografias pessoais no Facebook, Twitter e Instagram; Esta participação robusta ecoa uma observação de Mark Zuckerberg em 2010 de que o nível de conforto do público em compartilhar informações pessoais on-line é uma “norma social” que “evoluiu com o tempo”. Mesmo assim, uma pesquisa recente da Harris Poll mostra que os jovens estão agora monitorando e alterando suas configurações de privacidade mais do que nunca, um desenvolvimento que o USA Today apelidou de "efeito de Edward Snowden".
Alerta de spoiler: As coisas não ficaram menos sérias em 2014. Nossa Palavra do Ano foi a exposição, que destacou o surto do vírus Ebola no ano, chocantes atos de violência tanto no exterior quanto nos EUA e o roubo generalizado de informações pessoais. Aqui está o que nós tivemos a dizer sobre a exposição em 2014:
Do senso de vulnerabilidade que permeia o Ebola à visibilidade de atos de crime ou má conduta que provocaram conversas críticas sobre raça, gênero e violência, vários sentidos de exposição foram expostos ao público este ano.
A fluidez da identidade foi um grande tema em 2015. A linguagem em torno do gênero e da identidade sexual se ampliou, tornando-se mais inclusiva, com acréscimos ao dicionário, como gênero fluido, bem como o prefixo neutro de gênero Mx. A identidade racial também teve muito debate em 2015, após Rachel Dolezal, uma mulher branca se apresentar como uma mulher negra, disse que ela se identificou como biracial ou transracial. Nossa Palavra do Ano em 2015 refletiu as muitas facetas da identidade que surgiram naquele ano.
Xenofobia.
Em 2016, selecionamos a xenofobia como nossa Palavra do Ano. O medo do "outro" foi um tema enorme em 2016, do Brexit à retórica de campanha do presidente Donald Trump. Em nosso anúncio, pedimos aos nossos leitores que refletissem sobre este termo em vez de celebrá-lo:
Apesar de ser escolhida como a Palavra do Ano de 2016, a xenofobia não deve ser celebrada. Pelo contrário, é uma palavra para refletir profundamente à luz dos acontecimentos do passado recente.
A palavra cúmplice surgiu em conversas em 2017 sobre aqueles que se manifestaram contra figuras e instituições poderosas e sobre aqueles que permaneceram em silêncio. Foi um ano de verdadeiro despertar para a cumplicidade em vários setores da sociedade, da política à cultura pop. De nosso anúncio de Palavra do Ano de 2017:
Nossa escolha para Palavra do Ano é tanto sobre o que é visível quanto sobre o que não é. É uma palavra que nos lembra que até a inação é um tipo de ação. A aceitação silenciosa do erro é como chegamos a esse ponto. Não devemos deixar que isso continue a ser a norma. Se fizermos isso, então somos todos cúmplices.
IAS 21 Os Efeitos das Alterações nas Taxas de Câmbio.
A verdade é que nós, pessoas, não queremos ficar isolados. Adoramos vender, comprar, importar, exportar, comercializar e fazer muitas outras coisas, tudo em moeda estrangeira!
Quando você olha para o mundo dos negócios, percebe que os negócios se tornam globais de duas maneiras: eles têm transações individuais em moedas estrangeiras ou, quando crescem, muitas vezes estabelecem operações no exterior (negócios separados no exterior).
Além disso, as taxas de câmbio mudam a cada minuto. Então, como trazer um pouco de organização para essa mistura de moedas? É por isso que existe a norma IAS 21 Os efeitos das alterações nas taxas de câmbio.
Qual é o objetivo da IAS 21?
O objetivo do IAS 21 Os Efeitos das Mudanças nas Taxas de Câmbio é prescrever:
Como incluir transacções em moeda estrangeira e operações estrangeiras nas demonstrações financeiras de uma entidade; e Como traduzir demonstrações financeiras em uma moeda de apresentação.
Em outras palavras, a IAS 21 responde a 2 perguntas básicas:
Quais taxas de câmbio devemos usar? Como reportar ganhos ou perdas de taxas de câmbio nas demonstrações financeiras?
Moeda funcional versus apresentação.
A IAS 21 define moeda funcional e de apresentação e é crucial para entender a diferença:
A moeda funcional é a moeda do ambiente econômico primário no qual a entidade opera. É a moeda da própria entidade e todas as outras moedas são "moedas estrangeiras".
A moeda de apresentação é a moeda na qual as demonstrações financeiras são apresentadas.
Na maioria dos casos, as moedas funcionais e de apresentação são as mesmas.
Contudo, uma entidade pode decidir apresentar as suas demonstrações financeiras numa moeda diferente da sua moeda funcional - por exemplo, ao preparar o pacote de relatórios de consolidação para o respetivo progenitor em um país estrangeiro.
Além disso, enquanto uma entidade tiver apenas uma moeda funcional, ela pode ter uma ou mais moedas de apresentação, se uma entidade decidir apresentar suas demonstrações financeiras em mais moedas.
Você também precisa perceber que uma entidade pode realmente escolher sua moeda de apresentação, mas NÃO PODE escolher sua moeda funcional. A moeda funcional precisa ser determinada pela avaliação de vários fatores.
Como determinar a moeda funcional
O fator mais importante na determinação da moeda funcional é o principal ambiente econômico da entidade no qual ela opera. Na maioria dos casos, será o país onde uma entidade opera, mas isso não é necessariamente verdade.
O ambiente econômico primário é normalmente aquele em que a entidade gera e gasta principalmente o caixa. Os seguintes fatores podem ser considerados:
Qual moeda influencia principalmente os preços de venda de bens e serviços? Em que moeda estão os custos de mão de obra, material e outros denominados e liquidados? Em que moeda os recursos das atividades de financiamento são gerados (empréstimos, instrumentos de patrimônio emitidos)? E outros fatores também.
Às vezes, os preços de venda, mão de obra e custos de material e outros itens podem ser denominados em várias moedas e, portanto, a moeda funcional não é óbvia.
Nesse caso, a administração deve usar seu julgamento para determinar a moeda funcional que mais fielmente representa os efeitos econômicos das transações, eventos e condições subjacentes.
Como reportar transações em Moeda Funcional.
Reconhecimento inicial.
Inicialmente, todas as transações em moeda estrangeira devem ser convertidas para a moeda funcional, aplicando-se a taxa de câmbio à vista entre a moeda funcional e a moeda estrangeira na data da transação.
A data da transacção é a data em que as condições para o reconhecimento inicial de um activo ou passivo são cumpridas em linha com as IFRS.
Relatórios subseqüentes.
Subsequentemente, no final de cada período de relatório, você deve traduzir:
Todos os itens monetários em moeda estrangeira usando a taxa de fechamento; Todos os itens não monetários mensurados em termos de custo histórico utilizando a taxa de câmbio na data da transação (taxa histórica); Todos os itens não monetários mensurados pelo valor justo utilizando a taxa de câmbio na data em que o valor justo foi mensurado.
Como reportar diferenças cambiais.
Todas as diferenças cambiais devem ser reconhecidas nos lucros ou prejuízos, com as seguintes exceções:
Os ganhos ou perdas cambiais sobre itens não monetários são reconhecidos consistentemente com o reconhecimento de ganhos ou perdas em um item em si. Por exemplo, quando um item é reavaliado com as alterações reconhecidas em outros resultados abrangentes, então também o componente cambial desse ganho ou perda é reconhecida em OCI também. Ganho ou perda de taxa de câmbio em um item monetário que faça parte do investimento líquido de uma entidade que reporta em uma operação no exterior deve ser reconhecido: Nas demonstrações financeiras da entidade separada ou da operação estrangeira: no resultado; Nas demonstrações financeiras consolidadas: inicialmente em outros resultados abrangentes e subseqüentemente, na alienação de investimento líquido na operação no exterior, devem ser reclassificadas para o resultado.
Mudança na moeda funcional.
Quando há uma mudança em uma moeda funcional, a entidade aplica os procedimentos de conversão relacionados à nova moeda funcional prospectivamente a partir da data da alteração.
Como traduzir demonstrações financeiras em uma moeda de apresentação.
Quando uma entidade apresenta o seu financeiro na moeda de apresentação diferente da sua moeda funcional, então as regras dependem de a entidade operar ou não numa economia não hiperinflacionária.
Economia não hiperinflacionária.
Quando a moeda funcional de uma entidade NÃO é a moeda de uma economia hiperinflacionária, então uma entidade deve traduzir:
Todos os ativos e passivos para cada demonstração da posição financeira apresentada (incluindo comparativos) utilizando a taxa de fechamento na data dessa demonstração da posição financeira.
Aqui, essa regra também se aplica a ajustes de goodwill e de valor justo. Todas as receitas e despesas e outros itens do rendimento integral (incluindo comparativos) utilizando as taxas de câmbio à data das transacções.
A Norma IAS 21 permite utilizar algumas taxas médias do período por razões práticas, mas se as taxas de câmbio flutuarem muito durante o período de relato, então o uso de médias não é apropriado.
Todas as diferenças de câmbio resultantes devem ser reconhecidas em outros resultados abrangentes como um componente separado do patrimônio líquido.
Contudo, quando uma entidade alienar a unidade operacional estrangeira, a quantia acumulada de diferenças cambiais relacionada com essa operação estrangeira deve ser reclassificada do capital próprio para os lucros ou prejuízos quando o ganho ou perda na alienação for reconhecido.
Economia hiperinflacionária.
Quando a moeda funcional de uma entidade é a moeda de uma economia hiperinflacionária, a abordagem muda ligeiramente:
As demonstrações contábeis do exercício atual da entidade são atualizadas primeiro, conforme exigido pelo IAS 29 Financial Reporting in Hyperinflationary Economies. Os números comparativos são usados da mesma forma que os números do ano atual nas demonstrações financeiras do período de relatório anterior. Somente então, os mesmos procedimentos descritos acima são aplicados.
A IAS 21 também prescreve o número de divulgações. Por favor, assista ao vídeo abaixo com o resumo da IAS 21 aqui:
Alguma vez você já esteve inseguro sobre qual taxa de câmbio usar? Por favor, comente abaixo este vídeo e não esqueça de compartilhá-lo com seus amigos clicando AQUI. Obrigado!
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140 Comentários.
oi silvia, muito obrigado por esta explicação. Eu não conseguia entender a diferença entre a moeda funcional e de apresentação & # 8230; agora está claro, muito obrigado.
Oi Silvia, agradeça seu bom trabalho neste artigo e vídeo. Aqueles realmente úteis para entender em determinar as moedas usadas em circunstâncias diferentes. Mantenha seu bom trabalho. Muito obrigado.
As duas declarações a seguir sempre me deixam confuso.
Todas as diferenças de câmbio resultantes devem ser reconhecidas em outros resultados abrangentes como um componente separado do patrimônio líquido.
Todas as diferenças cambiais devem ser reconhecidas nos lucros ou prejuízos,
Você poderia por favor esclarecer isso?
Oi Ezat, eu posso entender sua confusão, não é tão fácil. Por favor, como a primeira coisa, perceba o que você está traduzindo:
& # 8211; você está traduzindo algumas transações individuais, como a venda em moeda estrangeira, ou compra ou qualquer outra coisa? Você está traduzindo essas transações para sua própria moeda (funcional)? Então, qualquer diferença de moeda estrangeira vai para o P / L.
& # 8211; você está traduzindo todo o balanço patrimonial e demonstração de resultados para moeda estrangeira (para fins de consolidação ou qualquer outro propósito)? Então, você provavelmente está traduzindo as declarações completas para a moeda de apresentação e a diferença de câmbio resultante vai para OCI.
Estou procurando um site que responda algumas perguntas sobre padrões contábeis explicitamente! Este é excelente! Eu simplesmente não colocaria meus Qs porque já estão sendo respondidos. Eu guardo suas mensagens para referência futura.
Eu só estou me perguntando como sua mente e temperamento continuam gerenciando esses Qs.
Espero que você não fique exausto!
Que Deus abençoe o que você faz!
Pergunta interessante 🙂 Eu te digo o segredo & # 8211; quando tenho o suficiente dessas perguntas, tento manter minhas mãos e minha mente ocupadas de outra maneira. Eu faço alguns bordados 🙂 Bordados 🙂 Tudo de bom! S.
Olá. Se eu estou traduzindo o todo, se as demonstrações financeiras de funcional para moeda de apresentação, tenho duas perguntas:
1) Ativos e passivos são convertidos utilizando taxas de fechamento. Devemos distinguir entre monetário e não ou em todos os casos, usamos taxas de fechamento?
2) e a equidade? Capital social, prêmio de ações, lucros acumulados? Qual taxa deve ser usada?
Eu gosto do seu explicar isso ias realmente e espero obter tutorial completo, mas como eu a vida no Egito? pode me dizer o caminho para obter todos os tutorial para todos os ifrs.
Eu gostaria da diferença entre economia não hiperinflacionária e economia hiperinflacionária. Obrigado.
Dinesh, economia hiperinflacionária é discutida na norma IAS 29 Relato Financeiro em economias hiperinflacionárias e este padrão fornece orientação também. No entanto, a norma não estabelece a taxa absoluta de inflação de um país para ser considerada "hiperinflacionária", é uma questão de julgamento, mas como uma orientação: por exemplo, se uma taxa de inflação acumulada sobre 3 anos está excedendo ou aproximando-se a 100%.
Hiperinflação - sua resposta a Dinesh outubro 12,2014.
Atualizações são feitas através da aplicação de um índice geral de preços. Itens como itens monetários que já estão declarados na unidade de mensuração na data do balanço não são atualizados. Outros itens são atualizados com base na mudança no índice geral de preços entre a data em que os itens foram adquiridos ou incorridos e a data do balanço.
Esta declaração não é clara. Poderia, por favor, ajudar-me a compreendê-lo com mais clareza. Qual taxa de câmbio deve ser aplicada para traduzir os itens monetários em moeda estrangeira.
Muito obrigado por esta explicação, isso me ajuda muito,
eu tenho pequeno Q, como para explicar as transferências entre as nossas contas bancárias que um está em nossa moeda funcional e a outra conta está em moeda estrangeira,
o caso que eu tive que nós ganhamos dividido e é depositado na conta bancária em moeda estrangeira, depois de algum tempo nós transferimos o dinheiro para a nossa conta bancária em moeda funcional?
isso é mais uma questão de aspectos práticos do que a questão do que está escrito na IAS 21. Depende fortemente de como as questões de moeda são cobertas em seu país. Deixe-me dar minha própria situação como exemplo:
Eu sou da UE e nossa moeda funcional é EUR. Quando algum pagamento chega à conta USD em USD, ele aparece em USD na conta, mas para registros contábeis, precisamos traduzir esse valor para EUR. De acordo com o IAS 21, precisamos usar a taxa de conversão na data da transação (quando o dinheiro chegou). De acordo com a nossa legislação, essa seria a taxa estabelecida pelo Banco Central Europeu (BCE) na data anterior à transação & # 8211; o que é perfeitamente aceitável para a IAS 21. Em seu próprio país, isso pode ser diferente, mas você deve estar considerando as taxas do banco central, e não os bancos comerciais, para este caso em particular.
Oi silva Aprecio seu esforço.
Aqui está o que eu preciso saber, ao converter as demonstrações financeiras individuais de uma subsidiária no exterior em moeda de apresentação da controladora, as diferenças resultantes (que são reconhecidas no componente separado do patrimônio no FS individual) serão cobradas do CRE e NCI das contas consolidadas em seus respectivos%?
Além disso, onde será cobrada a diferença de câmbio do ágio resultante da aquisição?
Faça um exame em 3 dias!
espero que não seja tarde demais para o seu exame! Para responder suas perguntas:
1) Não, todas as diferenças são apresentadas em 1 linha: CTD (diferença de conversão de moeda). Eles não estão divididos.
2) Hmhm, acho que o goodwill resultante da aquisição é um item histórico que aparece apenas nas demonstrações financeiras consolidadas, e não no FS separado de uma subsidiária estrangeira.
Na aquisição, você calcula o ágio usando as taxas de conversão reais na data da aquisição. Eu simplesmente não gosto da ideia de traduzi-lo pela taxa atual & # 8211; como é um ativo histórico, mas a taxa de câmbio é agrupada com todas as outras diferenças de câmbio.
Espero que ajude e boa sorte para o seu exame!
Muito obrigado Silvia.
E sim, traduzimos o ágio na data de aquisição e na taxa de fechamento do final do ano (assim como o restante dos ativos). Acho que isso acontece porque, se a tradução está ocorrendo apenas para fins de consolidação, todos os elementos da posição financeira serão cobertos.
Correto, isso é o que a IAS 21 exige. Eu simplesmente não gosto disso # 8211; minha opinião pessoal. De qualquer forma, a diferença cambial decorrente da tradução do GW é uma parte desse componente OCI & # 8220; CTD & # 8221 ;. Boa sorte!
O seu é o único recurso que encontrei on-line que explica adequadamente o que é o IAS 21 & # 8211; obrigado. mas eu ainda estou tendo um problema em entender isso 100%. Estou investindo em uma empresa no mercado de ações do Reino Unido. Eles são uma empresa de mineração de ouro com sede na África do Sul. sua moeda funcional é ZAR e sua moeda de apresentação (com a finalidade de divulgar relatórios anuais para acionistas do Reino Unido) está em Sterling. sua conta P & amp; L mais recente declara que o lucro após o imposto foi de £ 26m & # 8230; mas, em seguida, no rendimento abrangente, afirma que as diferenças de conversão de moeda estrangeira totalizam £ 25m! portanto, quase completamente eliminando o lucro reportado.
Eu não posso descobrir o que poderia causar diferenças de conversão em moeda estrangeira no valor de £ 25m e não há notas no relatório anual para explicar (provavelmente eles estão esperando que ninguém vai notar!) Você seria gentil o suficiente para dar um exemplo ou dois?
A diferença de conversão em moeda estrangeira em OCI é exatamente o que eu me refiro como "CTD & # 8221; ou "diferença de conversão de moeda" & # 8221 ;. É porque quando sua empresa está traduzindo suas demonstrações financeiras de ZAR (moeda funcional) para GBP (moeda de apresentação), usa diferentes taxas de câmbio para converter ativos e passivos (taxas de fechamento) e para converter receitas e despesas (taxas médias anuais).
Você também precisa perceber que o CTD em OCI é CUMULATIVO & # 8211; ela não surge apenas no ano de referência atual, mas está acumulando a partir da data inicial de conversão das demonstrações financeiras na moeda de apresentação.
A CTD de 25 milhões de libras esterlinas é provavelmente um valor cumulativo. Por favor, tente olhar para os números do ano anterior e o saldo do CTD. A CTD recém-surgida é uma diferença. Ou você pode olhar para a demonstração de lucros ou perdas e outros resultados abrangentes & # 8211; você verá exatamente quanto CTD cresceu no ano do relatório atual.
Espero que ajude! S.
Obrigado Silvia sim, você está correto, claro, o OCI para este ano é de £ 25m e no ano anterior foi de £ 20m de diferença de £ 5m. Muito obrigado por sua ajuda.
Eu apreciaria se você pudesse me ajudar com os seguintes problemas:
Emissão para transação em moeda estrangeira.
1. Reconhecimento inicial
O adiantamento de 100% foi liberado em determinada taxa e a fatura final com material é recebida após por exemplo. dois meses durante os quais existe uma taxa de câmbio diferente. Então, qual taxa a ser usada, a taxa na qual o adiantamento foi liberado ou a taxa existente na data do recebimento real das mercadorias.
2. Para um adiantamento de 100% que permaneceu não ajustado na data de fechamento, temos que traduzir na taxa de fechamento.
3. Reconhecimento Subsequente de Responsabilidade.
Aquisição de ativos em moeda estrangeira - na liquidação do passivo, a diferença é cobrada do ativo (se o ativo estiver no estágio Em andamento) ou para ganho ou perda.
aaaaaa, pagamentos adiantados & # 8211; todo mundo trata isso de forma diferente!
OK, mas aqui está minha opinião:
1) Se o pagamento antecipado foi feito para o ativo específico (estoques ou imobilizado), então não reavalie, mas simplesmente trate uma parte do custo de aquisição na taxa de câmbio original do câmbio. O motivo é que a IAS 21 exige que você traduza a transação em moeda estrangeira com a taxa AT THE DATE da transação.
Agora, qual é a data da transação? As IFRS dizem que é o dia em que a transação aparece pela primeira vez em suas demonstrações financeiras. Nesse caso, você começa a adquirir um ativo na data de pré-pagamento.
2) Novamente, quando é um adiantamento para o ativo específico, é um ativo não monetário (como você não tem direito a receber caixa, você está apenas esperando que o ativo não monetário seja adquirido). Nenhuma reavaliação
3) IAS 16 não permite capitalizar as diferenças cambiais 😉 para P / L 🙂
Curiosamente, e o análogo é?
Mas ainda tenho essa pequena dúvida em relação à conversão da transação em moeda estrangeira com a taxa AT THE DATE da transação. Estou interpretando AT THE DATE da transação como a data em que reconheço o ativo que eu faria isso quando o ativo for realmente recebido e não a data em que o adiantamento é liberado, no momento da liberação do adiantamento, o ativo ainda está para ser formado e tal não é reconhecido nos livros. Por exemplo se não tivéssemos liberado o adiantamento, o ativo teria sido reconhecido na taxa em que o ativo é recebido, portanto, se eu assumir que o valor do ativo seria reconhecido no momento do pagamento, se nenhum adiantamento tiver sido liberado.
Espero que eu esteja fazendo sentido.
Sim, faz sentido e eu entendo suas dúvidas. Acredite em mim, todo mundo está tratando isso de forma diferente, pois não há orientação específica nos padrões para isso.
Tente ver isso de uma maneira diferente: qual é o custo real de adquirir o ativo? Seu dinheiro real? Parte disso foi feito quando você pagou o adiantamento. Se você traduzir o pagamento antecipado com a taxa da fatura, estará efetivamente capitalizando as diferenças nas taxas de câmbio (e você não deverá fazê-lo).
Na data da transação = a primeira vez em que a transação aparece em suas demonstrações financeiras. Claro, se você não pagar adiantado, então é a data de entrega. Mas se você incorreu em custo real (pagamento) antes desse dia & # 8230;
Há muita discussão acontecendo sobre isso. Minha opinião é que você deve ter seu custo real.
Aqui também tenho uma dúvida.
Na data da transação = a primeira vez em que a transação aparece em suas demonstrações financeiras. Claro, se você não pagar adiantado, é a data de entrega. Mas se você incorreu em custo real (pagamento) antes desse dia ...
Qual será o tratamento se 50% de adiantamento for pago e 50% pago um mês após o parto. Qual taxa de câmbio deve ser aplicada para o registro das compras. Aqui data da transação é a data de pagamento antecipado de 50%.
Contabilidade Forex realmente confusa.
Então, o que acontecerá se o ativo for recebido com antecedência e o pagamento for feito alguns meses depois. Então aqui também reconhecemos ativos dois meses depois.
Sonam, desde essa discussão, eu escrevi um artigo sobre pré-pagamentos especificamente, por favor, consulte aqui.
Caro Silvia, Obrigado por criar e compartilhar esses artigos e vídeos muito bons. Eu assisti o vídeo e li o artigo no IAS 21 e fiz alguma consulta. Eu preciso preparar balanço individual subsidiária e declaração de renda na moeda dos pais.
1. Retranslino o ganho / perda cambial reconhecido em I / S na moeda funcional, usando a taxa média em I / S da moeda-mãe? Note que o ganho / perda cambial inclui o empréstimo recebido da empresa mãe na moeda dos pais.
2. É certo reconhecer o ganho / perda de diferença de câmbio no lucro líquido de retranslação na taxa de fechamento em B / S e taxa média em I / S como Outros resultados abrangentes em I / S na moeda de apresentação?
Eu ficaria muito grato se você gentilmente me ajudar nessas duas questões. Obrigado.
Obrigado por estes artigos maravilhosos
Eu apreciaria se você pudesse me ajudar na seguinte questão:
Registramos uma transação no mês de janeiro de 2015 usando a taxa de câmbio vigente naquela data. Agora somos obrigados a reverter a transação porque ela foi lançada inadvertidamente. A entrada de reversão deve ser passada no mês de março & # 8217; 15. Podemos usar a taxa de câmbio que usamos ao passar a entrada original? Ou devemos usar a taxa de câmbio de março & # 8217; 15.
se isso é apenas anulação (como a transação nunca teria acontecido), então faça com a taxa de câmbio original.
Obrigado Silvia & # 8230;
isso é muito informativo. Não consigo encontrar a resposta aqui (ou em qualquer outro lugar), no entanto, para um problema com nossa subsidiária alemã (a matriz é baseada nos EUA). As avaliações de cada mês para a taxa de câmbio são lançadas no P & amp; L, mas usamos uma conta de ganho / perda não realizada para fazer isso. Nossa subsidiária alemã, no entanto, lança todas as suas alterações no valor de suas contas bancárias em caixa para ganhos / perdas realizados, não realizados. Ambos estão abrindo a P & L corretamente, então isso não é um grande problema. Eu estou apenas tentando entender se a exigência é exigida pelo IFRS vs GAAP nos EUA, que usaria apenas ganhos / perdas não realizados.
Sou eu novamente com a pergunta enganadora & # 8230; procurando uma visão fresca.
A empresa tem um contrato com um construtor fixado na moeda local. Ao mesmo tempo, o contrato tem uma cláusula que diz que no caso de a moeda local depreciar em relação ao USD mais de 3 pontos, o pagamento deve ser aumentado pela diferença nas taxas de câmbio. Por exemplo, o total do pagamento a pagar é 500 moeda local (ou 100 USD) no reconhecimento e na data de pagamento a moeda local é reduzida a 60 por USD, portanto o pagamento final deve ser feito em 600 na moeda local.
A questão é se existe perda cambial e se ela deve ser capitalizada para a instalação construída ou reconhecida em PL.
Parece que inicialmente é um contrato em USD e nenhuma perda / ganho cambial deve ser reconhecida (a moeda funcional da Companhia é USD). No entanto, se a diferença for inferior a 3 pontos que nenhuma compensação é feita e o ganho forex é reconhecido no comércio a pagar até 3 pontos. Além disso, não há menção se a moeda local se valoriza em relação ao USD (o que não aconteceu no passado).
Para mim, existe um instrumento derivativo embutido, em vez do USD a pagar e, portanto, o IAS 39 aplicado. Eu estou querendo saber se você tem visão diferente? E como você explicaria essa transação?
Minha filial da África do Sul compra mercadorias em dólares do Japão / Índia.
Depois que o fornecedor envia as mercadorias, minha filial SA registra a responsabilidade nos livros. (durante este tempo a taxa de câmbio ZAR para USD é digamos 11)
Então, o sistema registra a responsabilidade em ZAR com base na taxa de câmbio de 11.
Quando as mercadorias são realmente recebidas pela filial SA, a taxa de câmbio é 12. Assim, ao lançar a Entrada de mercadorias, o sistema identifica essa diferença de 1 (diferença de câmbio) e Mercadoria de débito a / c em BS e conta de ganho de troca de créditos em PL. Está correto?
É certo aumentar / diminuir o estoque para a flutuação da taxa de câmbio? Conselho por favor.
isso depende dos termos de entrega & # 8211; quando os riscos e recompensas da propriedade passam para sua filial? E como a transação inicial (quando o fornecedor despacha as mercadorias) é registrada? Os estoques são itens não monetários e, portanto, você deve mantê-los à taxa histórica. A questão é quando a propriedade passa para você & # 8211; se estiver no momento do envio das mercadorias, você deve mantê-las às 11h.
Muito obrigado pela sua resposta rápida.
Neste caso, o prazo de entrega é FOB. Então, uma vez que o BL é emitido, precisamos reconhecer o passivo. No entanto, as mercadorias podem chegar após 1 mês, altura em que a taxa de câmbio é alterada. Nesse cenário, para qual conta podemos cobrar esse custo (se não mercadoria). Um lado da entrada é claro, isto é, ganho de troca / LOss para o PL. Pl aconselhar.
Nesse caso, a data de transferência de propriedade (e reconhecimento de mercadorias) é quando as mercadorias são carregadas para transporte. Desde esse ponto, é você quem controla as mercadorias. Portanto, você deve usar a taxa histórica de 11, também para lançar as mercadorias de mercadorias em trânsito para mercadorias no depósito. S.
Se a mudança for possível, haverá algum efeito sobre o lucro líquido da empresa participante e subsidiária.
Uma pergunta sobre ganhos e perdas cambiais não realizados para empréstimos interco: nós revisamos todas as posições pendentes do IC BS usando as taxas de câmbio determinadas pelo Grupo a partir do final do ano. E se tivermos empréstimos de longo prazo, é possível mostrar esses ganhos e perdas não realizados da remensuração em OCI como parte do patrimônio e excluí-los do PNL? De acordo com o US GAAP, isso é permitido. Mas eu fiz minha pesquisa sobre o IFRS e não consigo encontrar uma resposta. Como geralmente por favor ajude 🙂
Se você classificar seus empréstimos como títulos de dívida mensurados pelo valor justo através de OCI, então o ganho / perda cambial seria uma parte da remensuração de valor justo e lançada em OCI. Essa é a nova categoria introduzida pelo IFRS 9 e também é abordada no Kit IFRS com exemplo. S.
Eu estou praticando no Nepal. Com relação à conversão das Demonstrações Financeiras em Moedas Gerenciais da controladora, os ativos e passivos foram convertidos para a taxa de câmbio na data base de cálculo do Banco Central e, para a conversão da declaração de renda, a taxa média anual foi considerada. A diferença foi apresentada em OCI. Por favor, deixe-me saber se isso está correto? Obrigado.
Sim, é assim que você deve traduzir as demonstrações financeiras na moeda de apresentação. S.
Se a Moeda Funcional da Controladora for USD e a Subsidiária estiver em SGD. Será que uma injeção de capital da Controladora em USD para a Controlada resultará em quaisquer diferenças cambiais.
Eu tenho uma pergunta sobre como determinar a moeda funcional para o custo mais a entidade (IFRS) para a entidade A.
O padrão de fato:
Entidade A (MY) - envolvida principalmente na montagem e teste de produtos para sua entidade controladora imediata, que é a Entidade B (EUA).
A Entidade A gera receita sob o custo mais o acordo com a Entidade B sob contrato da TP.
A receita é gerada em USD (abaixo do custo mais modelo)
Custos diretos são MYR (encargos trabalhistas / materiais diretos).
com base nesse padrão de fato, qual será a moeda funcional apropriada para a Entidade A e como justificar a sua?
Atenciosamente e obrigado.
Por gentileza, ajude com o tratamento de ganhos ou perdas cambiais em um contrato a termo (o contrato a termo aqui é para a construção de ativos não circulantes.
sem saber qual é o contrato a termo, não posso realmente ajudar # 8211; informação insuficiente.
A minha empresa-mãe nos emprestou USD (subsidiária) há 3 anos e, nessa altura, não nos pediram para pagar. portanto, não reavaliamos a moeda. Mas agora temos que pagá-lo.
1. Precisamos reavaliar o empréstimo em USD?
2. que maneira possível reduzir nossa grande perda nesta reavaliação de USD.
sim, você deveria ter reavaliado este empréstimo também nos períodos anteriores, de acordo com o IAS 21. Agora, claramente, você cometeu um erro, pois não aplicou o IAS 21 corretamente. Portanto, eu calcularia o impacto da reavaliação de lucros e perdas nos períodos anteriores e, se for significativo ou relevante, eu faria uma correção de acordo com a IAS 8.
Desta forma, & # 8220; grande perda & # 8221; na reavaliação do USD seria distribuída por 3 períodos e uma parte seria reconhecida no patrimônio líquido como uma correção de erro.
Agora está claro. Obrigado por seu ótimo conselho.
No final do ano, havíamos reavaliado o ágio que resultou da consolidação na taxa de câmbio de fechamento e resultou em redução que levamos para o CTA no patrimônio líquido. As alterações no saldo do CTA afetarão a demonstração consolidada do fluxo de caixa?
Eu e meus colegas sempre discutimos se devemos ou não traduzir itens monetários na data do relatório usando o & quot2220; Buying & # 8221; taxa ou & # 8220; SElling & # 8221; taxa. Eu sou do argumento de que a taxa na qual eu posso comprar a moeda estrangeira deveria ser usada, significando a taxa de venda definida pelo banco. Por exemplo, se a minha moeda funcional é USD e eu preciso traduzir o EURO em USD, eu deveria ter a taxa na qual eu posso trocar USD para Euro, certo?
boa pergunta. Bem, isso depende do que está disponível. Na UE, o Banco Central Europeu define as taxas para as outras moedas e muitas empresas simplesmente usam essas taxas, independentemente das taxas comerciais do banco.
No entanto, o IAS 21 no parágrafo 26 afirma que quando você tem várias taxas disponíveis, então você deve tomar a taxa na qual você liquidaria o passivo ou recuperaria o ativo na data de mensuração. Praticamente significa "# 8211; se você tem USD a receber, então você usa a taxa de compra (você receberá USD e o banco comprará para converter em EUR), e se você tem uma obrigação em USD, então você usa a taxa de venda.
De qualquer forma & # 8211; você absolutamente precisa ser consistente e usar os mesmos princípios todas as vezes. Espero que isto ajude! S.
Em relação ao exemplo que você deu com USD a receber, não deveríamos usar a taxa de compra para tal item? Deixe-me explicar :
Temos USD 1.000 a receber do Devedor X. A moeda de apresentação da nossa empresa é EUR.
USD para EUR & # 8211; Taxa de compra: 0.75 (o banco está comprando 1 USD por 0.75 EUR)
USD para EUR & # 8211; Taxa de venda: 0,80 (o banco está vendendo 1 USD por 0,80 EUR)
O devedor X nos paga os US $ 1000.
No contexto atual, eu obtive USD do Devedor X e para saber o valor do USD em termos de EUR, eu preciso vender este USD para o banco. Isso significa que o banco estaria comprando meu USD e por cada 1 USD, eu receberia 0,75 EUR.
Com base nisso, não deveríamos estar usando a taxa de compra bancária para esse tipo de recebível?
Claro que voce esta certo! 🙂 Corrigido!
Obrigado pela sua pronta resposta Silvia 🙂
Eu também tenho outra questão relacionada à retranslação de saldos no final do ano. Eu tenho navegado no IAS 21 para obter uma resposta para estes, mas sem sucesso:
Ao retraduzir todos os valores monetários em moeda estrangeira para a moeda de apresentação, há ganhos e perdas que surgem.
Todos os ganhos / perdas cambiais são contabilizados como realizados ou não realizados?
Você poderia também explicar a lógica por trás da classificação dos ganhos / perdas como realizados ou não?
quando você traduzir para a moeda de apresentação, não calcule nenhum ganho ou perda, simplesmente traduza. Haverá diferença entre ativos e passivos totais & # 8211; esta é a diferença de conversão de moeda apresentada no patrimônio líquido. S.
Gostaria de saber quais entradas contábeis seriam feitas na conversão de final do ano das demonstrações financeiras para a moeda do relatório.
Vamos pegar o exemplo abaixo:
A moeda do relatório da empresa é USD. It has foreign debtors and creditors in EUR. Let’s assume only these 2 items to calculate the CTD at year end (31 Dec 2016).
Rate EUR to USD at 1 Jan 2016 : 1.5.
Rate EUR to USD at 31 Dec 2016 : 1.3.
Foreign debtors (EUR) at 1 Jan 2016 and 31 Dec 2016 : EUR 1000.
Foreign debtors (USD) at 1 Jan 2016 : USD 1500 (1000 x 1.5)
Foreign debtors (USD) at 31 Dec 2016 : USD 1300 (1000 x 1.3)
Foreign creditors (EUR) at 1 Jan 2016 and 31 Dec 2016 : EUR 2000.
Foreign creditors (USD) at 1 Jan 2016 : USD 3000 (2000 x 1.5)
Foreign creditors (USD) at 31 Dec 2016 : USD 2600 (2000 x 1.3)
From here on, how do we calculate the difference between assets and liabilities and how do we record the CTD as a separate component of equity at 31 Dec 2016 ?
Agradecemos antecipadamente 🙂
I am doing year end account for one of my client, they have an account in Euro and ending balance showing in GBB in my bookkeeping system is different if I use the actual exchange rate on the date. My understanding was the difference on exchange should reported in equity as Unrealised gain or loss the P&L. Por favor corrija-me se eu estiver errado.
that depends on what you’re trying to do. Are you translating foreign currency amounts to your functional currency? Then translation differences are reported in profit or loss, not equity. S.
Thank you for this. I appreciate your explanation.
Please kindly shed some light on the following.
Please for a financial statement, when you translate the bank Balances in foreign curency using the closing rate the gain or loss as a result of the translation-is it realized or unrealized?
If realized or unrealized what are the tax effect.
it’s realized (as any other foreign currency difference). The tax effect depends on the tax legislation of your country. Por exemplo. in our country, these realized differences are optionally taxable (you can opt to tax them when they arise, or not to tax them at all). S.
Hi Silvia, could you please inform the gains/losses raised from the revaluation of bank balances in foreign currencies should be classified as realized or unrealized according to IFRS?
I assume you are translating into the functional currency. In this case, it’s realized in profit or loss (anyway, IFRS do not know the term “unrealized”). S.
Thanks for quick answer, my local Financial statement currency is EGP and my question is regarding reevaluating the bank balances in foreign currencies (the equivalent of these currencies in EGP in my books) the FX gains or losses appears is realized? I need your reply for my local reporting and for the consolidated report for my group (more than 1 company report)
Yes, these gains and losses are realized, that is in profit or loss. S.
Thanks for your support but i have question, what’s the reference in IFRS that bank balance reevaluation should booked as realized gain or loss.
Standard IAS 21 paragraph 28.
I have following queries:
1. Exchange Gain or Loss – Realized and Unrealized: How to present it in financials.
• As Raw material Cost i. e before gross margin.
• As finance cost i. e after gross margin.
• Realized and unrealized Both as finance cost.
• Realized and unrealized Both as raw material cost.
2. Finance Cost: Inclusion and exclusion Trade Finance and Bank Charges, Overdraft interest shall form part of finance cost or bank interest, LC Commission shall form part of Raw Material cost or shall be treated as bank charges (may not be relevant to IFRS) just the accounting treatment.
3. Revaluation of Forex assets and liability at period closing, eg cash backed LC, how to treat this…
Suppose I have an external commercial borrowing(India) of 100M USD for 10 years, with conversion rate of 1USD= 50INR.
Now I hedge this and I have a 10M debtor every year.
If in future the exchange rate becomes 1USD=60INR, how would my liability be impacted and what would be the balancing accounting.
On my books in INR, I will have a 6000INR loan, but how would I balance this?
Dear Chirag Jain,
if you do it right, then you would have a corresponding derivative asset amounting to approximately 1000INR in your accounts. S.
Eu tenho uma pergunta. If my entity has a functional currency of EUR and it has foreign currency transactions in GBP, when I go and prepare the accounts in a GBP presentation currency, do I apply a period end rate to my original GBP transactions or just use the original GBP amounts?
Dear Richard, please apologize for the later response. Let me split it:
& # 8211; Monetary assets/liabilities: At the year-end, you translate it from GBP to EUR, you use closing rate, isn’t it? Then when you translate it back to GBP (as to presentation currency), you use the same rate and you should be fine.
& # 8211; Non-monetary assets/liabilities: At the year-end, you do not translate them, but you keep them in a historical rate. However, after you recognized the asset initially, it stopped being GBP asset and became EUR asset (it’s non-monetary). So yes, apply closing rate.
& # 8211; Transactions in P/L: you should apply the transaction date rates, so you should be OK.
Espero que isto ajude! S.
Hi, Silvia. I have a question about translating statements from functional currency to presentation. Is the resulting difference in OCI is just an item (line) which balances other items of statement of financial position with each other? Or there should be some postings in the accounting books? It`s a little bit confusing, because if we have operations in different currencies other than functional and we report in the functional currency, the exchange difference goes to P/L.
But I think the first variant is right.
Yes, Katrine, the first variant is right. Translating FS to presentation currency is NOT a bookkeeping operation – it’s just a presentation. S.
Obrigado! It helped a lot)
Hi, Silvia. I`m wondering is there any situations when IAS 21 may not be applied. Particularly I`m interested in the preparation of statements in the reporting currency other than functional. I`m working in the company that prepares statements for its Holding, using the closing rate for all items, including retained earnings, so there is no need of including differences in OCI. But Holding is the European company and works according to the IFRS requirement. My colleagues don`t know. You are my only hope.
well, as soon as a company or a holding applies IFRS, then it must apply ALL IFRS standards, including IAS 21. There is no exception. So, if your financial statements will be a part of holding’s consolidated financial statements under IFRS, then yes, you need to apply IAS 21. S.
I have seen one IFRS interoperatation Committe for Revenue Recognition when the Sales Contact is in Foreign Currency (Foreign currency translation of Revenue)
Foreign currency translation of revenue: views 5.
Revenue is recognised using the spot rate at the date:
• an enforceable contract is entered into (T0): View A.
– rights and obligations of transaction established at this date.
• advance payment is received (ie on recognition of deferred.
revenue) (T1): View B.
– first recognition of transaction is when either of parties to contract first.
• the revenue is recognised (T2): View C.
– if payment is in advance, the difference between the deferred revenue.
balance and amount of revenue due to fx movements is recognised.
as an exchange gain/loss as revenue is recognised.
– delivering services/goods is viewed as a transaction in its own right.
You have any idea about finalisation of above issue .
Advance Payment Received.
Which Exchnage rate we should use for entering Sales & Purchases ?
your clarification is highly useful.
Honestly speaking it is difficult to understand the topic. suppose the following is the case.
Contract signed Jnaury.
Advance Payment Received (30%) February.
Goods Supplied. Pode.
Remaining amount Received (70%) July.
Hi Albi, no, this issue has not been completed yet. And, it’s so complex, that it’s difficult to respond within 1 comment, but I can write an article with a case study in the future. S.
thank you in advance for that Article. That would be a great research 🙂
If feasible, please consider Payments to Supplier also.
Contract in Foreign Currency (Sales& Purchase)
Contract signed with Client Janaury.
Contract signed with Suppplier Janaury.
Advance Payment Received from Client (30%) February.
Advance Payment to Supplier (70%)-March.
Goods Supplied - May.
Remaining amount to Supplier (30%)-May.
Remaining amount Received from Client (70%) July.
Many accountants & Auditors are confused about the proper treatment. If we use spot rate for recording all the transactions, There would be misleading result. If exchanges rate goes up during the period, better to delay the receipt from Clients 🙂 🙂 if rates decreases then huge loss.
I am from the Philippines. My client has a foreign currency bank account. At year end, I translated the balance using the closing rate for Financial reporting purposes. How do I account for the foreign currency gain/loss? Is it “unrelealized” or “realized”? Muito obrigado.
it’s realized, i. e. you recognize the gain or loss via profit or loss account. S.
Is there any possibility of an unrealized gain portion for cash?
I really like your explanations on IFRS but i also need clarifications IAS 21 (Foreign currency translation) on tax administration that collects in different currencies and now during reporting what would be the treatment of the opening balances, period collections, treatment of the loss/gain on translation and closing balances presentation.
please, you need to describe the transaction more precisely. When tax is paid in your local currency on foreign currency items, then the translation depends also on the tax rules, not only on IFRS. But in general – all these payments are translated either via real rate recalculated by your bank, or by the spot rate, as they represent the translation from foreign currency to your functional currency. Opening tax liabilities in foreign currency are translated by the closing rate (of previous rep. period). Gains/losses are reported in profit or loss. S.
i have a issue regarding loan revaluation. can you tell me which rate is use for revaluation of loan?? i. e. buying rate or selling rate. this revaluation is not for a bank or any financial institution.
Thanks for IFRS Box , has always been helpful, please if I have taken a loan denominated in foreign currency and at each reporting date , I convert to my functional currency at the closing rate at that period , will the exchange loss or gain go to OCI or P&L.
P/L, because it’s a monetary item. S.
I am not yet due to pay back the loan , is the exchange rate realized or unrealized . Also is there any situation I can treat the exchange loss through OCI.
Dear Silvia , In case the company decides to change the prtesenatation currency during the year, then how to translate comparative figures. Also wrt current year figures-is the procedure same as for change in functional currency.
IAS 21 does not say anything about the change of presentation currency, but it is appropriate to follow the rules for change in accounting policy under IAS 8 (unless it is not practical), i. e. retrospective application.
I have one question as follow.
Our subsidiary is based in Mozambique where the exchange rate was about 30 at 31/12/2014 and 44.49 at 31/12/2015 and around 78 at this moment. However, the official inflation rate of this country is relative low (about 15% in 2016) and will not be over 100% for the last 3 years.
Can we consider Mozambique a hyperinflationary economy? If not, what can we do to ensure the comparability of prior period information.
Thank you in advance for your help,
Sorry, I would like to add further information.
This question is for the consolidation purpose. The parent company is reporting in USD while the subsidiary is reporting in MZN (Mozambique local currency).
well, the criterion about the official rate being over or coming close to 100% for 3 years is not decisive. There are more factors to consider whether the economy is or is not hyperinflationary – por exemplo. how do people keep their wealth – in foreign currency? In local currency? Or, are interest rates, salaries and prices anyhow linked to a price index? etc. For more guidance, please look to IAS 29.3.
Then, if there are no such indicators, and you conclude that an economy is not hyperinflationary, you just don’t apply IAS 29. S.
would you please clarify the deference between the translation in subsequent report in How to report transactions in Functional Currency paragraph and How to translate financial statements into a Presentation Currency paragraph as the non monetary items well translated at historical cost initially then we well translated them at closing rate when we translate financial statements?
Also Silva need advice regards the risks that may arise if we replaced volatile functional currency with one of major currency like $( specially in.
Hyperinflationary economy environment )
Hi Hisham, if you don’ translate all your financial statements into some other (presentation) currency, then you do nothing with your non-monetary asset. If you do translate your financial statements to the other currency, then you use closing rate for all assets including non-monetary. I think I explained it in the paragraph Functional vs. Presentation currency.
Hi there Silvia, I would like to obtain a clarification with regards to the term “Settlement” as used in IAS 21.
In paragraph 15 of IAS 21, it is stated as follows :
“An entity may have a monetary item that is receivable from or payable to a foreign operation. An item for which settlement is neither planned nor likely to occur in the foreseeable future is, in substance, a part of the entity’s net investment in that foreign operation, and is accounted for in accordance with paragraphs 32 and 33.”
Does SETTLEMENT of the intercompany balance refer only to payment, as in, cash payments ? Or let’s say, to settle a loan payable to its parent, a subsidiary issues shares to the parent. In substance, would the issue of shares be considered as a form of settlement ?
My interpretation of this is : since the liability of the subsidiary towards the parent no longer exists because of the issue of shares, this is in substance, a settlement of the loan.
Please tell me if I’m right here.
Agradecemos antecipadamente 🙂
Yes, Rishi, I agree. Settlement is a broader term, not limited only to a payment or cash (that would be “cash settlement”).
Thanks for the reply Silvia 🙂
In consolidate foreign operation to presentation currency, IAS 21 states that the results and financial position of foreign operation shall be translated using:
& # 8211; Assets, liability: closing rate.
However, I don’t know the mentioned fx rate at closing date is the Fx rate used to FX revaluation of foreign operation or parent company at reporting date?
Due to parent company has cash in foreign operation’s currency, it will revaluation foreign cash at reporting date using closing rate. I wonder if using the closing rate of foreign operation to translate to presentation country leads to different applied closing rate in consolidation FS.
And the average rate will get from foreign operation or parent’s transaction?
Hope to see your answer, thanks!
My company is located in Nigeria and functional currency is Naira. our transaction included foreign currency as well as we are involved in Port Logistic services under Oil and gas sector. Every month we run exchange routing to align our current assets and Liability with closing rate.
Now my boss has ask me Balance sheet in USD currency as of end 31st Oct. if I convert all the assets and Liability with closing rate of Oct, then my assets will drastically reduced in term of USD currency compare to last year. the last year rate was 197.5/USD where as of Oct closing rate is Naira 315/USD.
Should I convert with closing rate assets or I should use historical rate.
I should use closing rate only for Current assets and current liability. For assets I should use historical rate?
if I use historical rate only for assets then I am generating difference around 153Mil USD which I have to show under share capital to make the tally Asses-Liability=share capital.
it depends on whether you want to follow IFRS or not. If yes, then technically speaking, you will be translating your financial statements to another presentation currency and in such a case, you need to use the closing rate (in this case, you don’t care about monetary/non-monetary items and historical rates).
Unfortunately, Naira weakened a lot and you could show very high “CTD” or currency translation difference in your equity to balance assets with liabilities.
Dear Silvia, one question regarding PPE traslation.
(I am in Argentina, our funcional currency is PESOS, but the presentation currency (in order to send montly package to Vienna) is USD.
1) In 2006 we bought a warehouse. The cost was 1.055.00 USD. The fx rate at that moment was 3,07. Therefore It equeals to 3.238.850 PESOS.
2)Then, at the end of each month, I have to do the “periodic valuation”. Considerig it is a non monetary item and we measure according historical cost, I have to transalte those 1.055.000 usd to the “historic rate” (3,07). Therefore, by the end of the month the amount in PEOS is the same.
3) Transaltion into presentation currency:
IAS 21 says that all assets have to be translate using the closing rate, BUT in this case this asset is nominate in USD (it was a result of a foreing transaction). So in this case I do not have to transalte from PESOS to USD right? The amount in USD to report in package will allwasy be 1.055.00 USD?
Desde já, obrigado!!
unfortunately not. PPE is a non-monetary asset and once it sits in your account, you stop thinking of it as about “USD” de ativos. So no, the amount on your fixed assets will not be 1055 USD, but 3 238 850 pesos translated with the closing rate. S.
Hello I’m in Lebanon and I’m not able to purchase the IFRS kit why? Why my country not on the list.
I think PayPal does not work in Lebanon, that’s why your country is not on the list. For this reason, you can make a payment with the alternative payment gate, directly with the credit card here: sites. fastspring/ifrsbox/product/ifrs-kit-offer.
If you need my further help, just let me know. Kind regards, S.
Hi Sylvia, Revenue was recognised in year 2014 in VEF which has steeply declined up till 2016, subsequently invoice was also cancelled and reissued with revised rates in 2016. Should revenue be also reversed in 2016 and re-recognised at a revised rate or it should be adjusted through retained earnings? Could you please quote relevant para of IFRS addressing the issue? Thanks a lot in advance.
the good question here is why the invoice was cancelled and reissued – was is just due to the change in the VEF?
If it relates to the correction of the revenue itself, then yes, it would be appropriate to correct the retained earnings (it’s a correction of error in the past, please see IAS 8).
If it relates only to the change in VEF and adjusting the receivable in VEF to reflect the change, but it has nothing to do with the past revenue, then I would simply recognized changes in P/L. The reason is that it’s a current-year transaction, something like “revising a receivable and passing the loss to a client”. S.
Dear Silvia, Thanks a lot for your reply to Allan. Really appreciated. What I would like to ask further is that I have seen a lot of leading companies declaring revenue results post and pre Foreign Exchange Gain/Loss. If I go by your approach then why do they absorb the foreign exchange impact in the revenue line. To be more specifc US Dollar appreciated in Q1 2015 and leading companies such as Genral Motors, Coca Cola etc. put out their result showing a pre & post Fx impact. We thank you once again for a continuous support you provide to readers all across the world. Kindly keep up the good work.
In Allan’s case, it was one specific case and from the question it was implied that the revenue was adjusted by the difference in foreign exchange – maybe this was the agreement with the client. In some other agreements, it’s the supplier who bears the currency risk. As you see, it all depends.
However, you need to understand how these leading companies sell. Do they sell in USD? Or do they sell in foreign currency – other than their presentation currency?
Also, may I kindly point you to their notes to the financial statements? I am pretty sure that there’s an explanation for that. S.
I am a bit confused about journalizing foreign currency transactions, let say a sale of goods in foreign currency on account.
The standard says that you translate it to functional currency by applying the spot exchange rate. The receivable is denominated in foreign currency while it is journalized in the functional currency. If it is not flagged as a receivable in foreign currency then you cannot keep keep track of the change in value do to the change of the foreign currency exchange rate. How do you specify that in the general journal? Thanks a lot in advance.
usually, as far as I know, these foreign currency items are recognized in 2 currencies in the accounting system – both functional and foreign. Of course, you see only the balance in the functional currency when looking to the general ledger, but the information should be somewhere in the system. S.
Kindly help me in regard to below query:
Treatment of FX rate variation on imported material: Kindly note that we import material e. g. from US and have SAP system in our company.
At the time of Goods Receipt system (i. e. SAP) Debit the inventory with exchange rate at the time of receipt of material and pass the entry.
Matetrial Account ——Debit (With FX rate at the time of Goods Receipt)
To GR/IR Clearing Account.
On receipt of Invoice from Vendor system pass the entry.
GR/IR Account———–Debit (With FX rate at the time of GR)
Price Rate Difference—Debit (With FX rate variation between GR and Date of Invoice Receipt)
To Vendor Account (FX Rate at the time of Invice Receipt)
My query is whether the price rate difference mentioned above should charge on the Material or directly charged in Profit & Loss Account?
the question is what the transaction date is. In my opinion it is the date when you accepted inventories, not the invoice. Therefore, the price difference should be recognized in profit or loss. Você pode ler mais sobre isso aqui. The article is about the prepayments in foreign currency, but it explain quite clearly what the transaction date is and it helps you understand the issue. S.
Please consider below situation –
X Ltd is registered in Georgia (Europe) and is engaged in power business. Power is sold 20% in local georgian market and 80% in Turkey. All sales proceeds are converted in USD on receipt of revenue. The providers of capital i. e. Term loans and equity provides funds in USD.
The functional currency decided by management is Lari (Georgian Currency). Now at every end of period, outstanding loan is being revalued and the exchange difference (USD-lari) is charged to Profit & Loss Account. This exchange loss is a non-cash item because this notional loss will never impact the profitability of the company, as the loans are denominated in USD and loan liability will remain in USD.
In this situation, can Company route such exchange loss on revaluation of loans through other comprehensive income instead of hitting P&L statement.
Hi Mohit, no, I’m sorry. I understand your concerns, but if your functional currency is Lari, then you need to re-calculate and recognize the difference via P/L. S.
I work for an NPO and would like to know the treatment of exchange rate differences of funds received from donors. At the budgeting stage we use the spot rate and these budgets can be for a period of 3years and the funds received in tranches. Please advise, thank you.
we are closing year Dec 16.
we have loan from 3 bank around $ 200Mil for running operation activity. we get interest invoice every month from the bank, we recognise as expenses. kindly advise as per IFRS how to treat the actual interest cost in P&L.
Please advise about non-monetary items like advance to supplier, if I have banke letter of gurantee from supplier against advanced payment, curreny revaluation for his balance as advance is correct or not?
for advances, see above. It depends on what type of advance it is. If it’s for goods or services and you don’t assume to get the cash back, then non-monetary. S.
Please advise in case of devaluation of currency(i. e.:Egypt) of foreign entity do we still continue to translate foreign operation like we normally do (i. e.: balance sheet items at closing and income statement at average) or there is any other method to translate.
Desde já, obrigado.
devaluation itself is not a reason for different reporting. The only exception is when your economy is hyperinflationary – in this case, there are different requirements to present comparatives, etc. – there’s a specific IFRS standard for it, plus look above to the article. S.
Find your article and comments to be very useful.
My query is regarding identifying of functional currency of an entity having manufacturing facilities in one country (say – India) more of domestic raw materials (partly imports too), local labor and other expenses locally, but exporting all their products to another country (say US)- the sales being designated in the currency of the foreign country to whom exports are made (in USD)and settlements also being made in this currency (USD). A portion of the earnings maybe retained in USD balances (but in an Indian bank) from time to time – essentially based on import needs if any. The pre - IFRS practise was to traslate the USD transactions into Indian Rupee. Confused about whether USD or INR will be the functional currency in this case? Indian Rupee has to be continued as the presentation currency.
Hello Silvia M. I read all your post and convince to go for IFRS KIT. but I have few queries, It would be great if you can contact me on my email or give me your email ID?
Waiting for your reply.
Hi Gaurav, please try resending the message to support@ifrsbox.
Amazing building of concepts through you!
I feel some confusion while accounting for the purchase of machinery for e. g from a foreign country, so if total cost is 100,000$ and terms of payment includes downpayment as an advance to supplier and 4 instalments. then how to account for this, and do the previous payments already made if talking about 3 payment, to be brought to latest forex rate and difference computed as exchange gain finally become part of the asset?
Dear Silvia Mam,
Can you please make it clear to me whether any foreign exchange differences (loss) arising out of import of capital goods bought for the start of operation of its business on its pre - operation stage can be booked or capitalized assuming it to be a pre-operating cost itself??
No, you don’t capitalize any forex gain/loss. Also, you do NOT capitalize the pre-operating costs under IFRS (unless they specifically relate to the acquisition of an item of PPE or intangible asset or other eligible asset).
We are an Online Travel Agent and acting like an agent according to; ifrsbox/ifrs-revenue-principal-agent/
Our revenue is the commission on trips (no package deals created by our company), price is determined by the actual operator.
I assume we have the focus on non-monetary customer prepayments and operator prepayments, both in foreign currencies (other than reporting currency EUR). We are allowed to recognize revenue once there is no cancellation option for the customer any more.
How to deal with the received prepayments and payments made to the final operators?
Example: (note: company has USD and EUR bank account)
Day 01 – customer prepayment 1.000 USD – fx to EUR = 1:1.
Day 10 – prepayment by us to Operator 3.000 THB – fx to EUR= 1:30.
Day 20 – prepayment by us to Operator 20.000 THB – fx to EUR= 1:25.
Day 30 – cancellation date, on date of Revenue recognition:
According to IFRIC 22 (effective 01-01-2018) you should take the fx on the actual “transaction date”. By this, it means that we will have the following result to be determined on Day 30:
Revenue customer part: 1.000 / 1 = EUR 1.000.
Revenue operator part: – 3.000 / 30 = – EUR 100.
Revenue operator part: – 20.000 / 25 = – EUR 800.
Total revenue result in the P&L to be taken / shown: EUR 100,-
No FX result should be shown in the report, based on IFRIC 22.
Is that the right conclusion? Or do you have a different opinion on this? Obrigado por seu apoio.
We are in the process of implementing Dynamics 365 and I have a question concerning Forex /PPV accounting under IFRS.
If we have our standard costs in GBP say Good A 80 GBP and we have raised a PO for 100 EUR (as it is a foreign supplier). Exchange rate at Std cost import is 0.8.
At receipt of the goods (before we receive the invoice) is 0.79.
Our postings would be: (in GBP)
Dr Inventory 80 (since we are standard costing)
Cr GRNI 79 (since €100 now equals £79 at the fx rate at receipt.
Cr ? 1 (being forex difference)
Is the Cr PPV or FX difference (bearing in mind that I think that the GRNI/PO is a non monetary item)?
Desde já, obrigado.
We are a gas distribution company and buy gas from various exploration companies. Monthly Dollar invoices are received for gas procured. We pay in Rupees.
To avoid exchange rate complications, we have entered into an agreement with the exploration comapnies such that we maintain/lock a mutually agreed exchange rate for 6 months. We therefore book our liability and make payment on such rate since its known to us.
Is IFRS 21 applicable in this scenario?
What rate should foreign currency payables/ receivables be converted at? Is it the Buying rate or Selling Rate.
If the company changed the functional currency, should we translate the comparative FS as well?
Question about the proper treatment of a construction work in progress (WIP) statement. For my question, assume that the project is being managed in a local currency different from the reporting currency.
I assume that the original contract would be valued at the contract’s inception date.
Now the project has a contract change order. I am assuming that I value the change based on its inception date.
Now the revised contract (original + change orders) would be the original contract (in reporting currency) plus the change order (in reporting currency)
Este é o tratamento correto? Desde já, obrigado!
Good learning experience. I’m little unclear. Can you kindly brief once on the steps how to adjust for unrealized profit or loss on intercompany transactions in parent and subsidiary and translation to presentation currency. Also the amount in parent books as per equity and acquisition method. Will both parent and subsidiary company will adjust unrealised gains or losses in thier books before translation. Is any adjustment Is required for realised gains or losses before translation?
can I make revaluation in end of the period with average buy and sale?
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Unadjusted forex gain loss meaning
Dois grandes anúncios hoje!
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The few vs the many.
This week the prime minister committed $50 million to survivors of residential schools in Newfoundland (before the province joined Confederation). He also promised $40 billion for a housing strategy focused on lower-income-earners and women. Every week since being elected, with few exceptions, Ottawa has announced a new spending program. Over four years the federal government is expected to write cheques for about $100 billion more than it takes in.
CPP benefits will be increased. Families now receive $6,400, tax-free, for each child under six and $5,400 a year, per kid, for 11 years after that. The age at which people get seniors’ pogey was rolled back to 65 by the current government. The cost is $69.4 billion. (By the way, OAS has an unfunded liability of about $560 billion – to be paid by future citizens.)
On and on. To finance this, the average family pays about 43% of its income in taxes of all kinds. Ottawa has created a new tax bracket for ‘the wealthy’, who now face a 53% tax take on income. The budget in March will implement measures to increase taxes on the self-employed. It may also increase the capital gains tax inclusion rate, or alter the dividend tax credit.
In a speech a few days ago the prime minister blamed rich people for not paying enough, and vowed to change that. Meanwhile his own finance minister had a horrible summer as he tried to defend the considerable personal wealth he’d been sheltering from the federal ethics commissioner.
The supporters of Justin Trudeau, which seem legion, support the efforts to close the gap on income disparity. Instead of growing the economy and raising wages overall, the emphasis has been on taxing more. But narrowly.
There are some 270,000 people in Canada who earn over $230,000 a year, in the 53% tax bracket. That’s 0.62% of the population. The average tax they paid (before the latest increase) was $160,000. Together this tiny group of people (average age, 52) earn about 10% of all the income but pay 22% of all income taxes. Seems like a good deal for everyone else, but the prime minister says it’s not enough.
As pointed out here in the past when irritating lefties show up, this is not a social justice blog. We like money, income, investible assets, capital gains and financial independence. We practice tax avoidance. We’re into real estate, exchange-traded funds, designer dog treats, crypto currencies and mocking the deplorables who think it’s okay to be seen near a Costco.
Here there’s no shame to be accomplished, wealthy or even (gasp) self-employed. And we wonder why, in an age when it’s apparently okay to do nothing and let your house make you a millionaire, it’s wrong to start a business, employ people, and earn a million? Why’s one pile of money tax-free but the other open for tax plunder?
A tenet of successful politics is us-vs-them. Works every time. It’s working now. So the spring 2018 budget will not be a happy event for the 1%ers. Ironically, Ottawa could Hoover all the wealthy people of most of their income, and the needle still wouldn’t move for the 99%. Most people will continue to borrow too much, buy houses they can’t afford, save and invest little, be financially illiterate and look to the government to bail them out. Meanwhile every dollar in over-spending and each future commitment made by the gang in Ottawa will indenture the middle class (and especially the young) to higher taxes later. If we had more rich people things might look better. Alas, we have a drought. And the few are in the crosshairs.
So let’s put our cards on the table. Open the kimono. Bare all.
Do the affluent pay their fair share of the tax load? Você?
Our GreaterFool survey asks for a simple question: What did your household earn last year, and what did you surrender in tax?
290 comments ↓
Bill Morneau….you go first.
#2 Alberta Ed on 11.24.17 at 5:29 pm.
Not enough, and too much, considering how much T2 is squandering Canada’s future.
Hey Garth – You go first!
You’re anonymous. I’m not so lucky. & # 8211; Garth.
We brought in 111,380.74 in 2016, paid 18,268.42 in tax.
#6 crowdedelevatorfartz on 11.24.17 at 5:42 pm.
Tax and spend , tax more and spend more, tax and tax and tax and spend way more.
Push that debt can waaaaaaay down the road to Millenial-ville when the country will truly be bankrupt….
The children of millenials will be cooking their parents over a campfire……
#1 Agreed. Then the PM and some of his friends (inc the Mulroneys etc) because most here are not a fan of hypocrisy. Look up how many Liberal/ gov’t execs have financial ties to marijuana groups. Conflict of interest?
Between our small business and personal, yes we pay our fair share. Thx for asking. And just like our PM/ finance min etc do what we can to reduce what we pay.
Single earner, family of 4 (2 kids)
(Max RRSP contribution, tax reduction at source)
#9 crossbordershopper on 11.24.17 at 5:51 pm.
well, with 20% corporate and 12% and no state tax in florida, and better write off”s, mtg interest etc. i dont see why anyone would bother staying in Canada.
If your successfull or want to be, then pack your bags.
i was talking to a bong selling store, waiting for legalization, he thinks he can do 400-500K gross, i said dude collorado stores do millions, and in us $, Canadians are poor, cheap and troublesome to sell to. Asking all those questions,
Ask the natives if they pay their fair share of tax? thats right, when about half of people in Canada pay no tax, like nothing, what is fair, like really what % is fair if you pay nothing. perhaps we should change the question, what else do you have to offer our society.. the real question, if one person gives of their money in forms of tax, what does a poor person offer, obviously not money, how about time, and effort. food for thought.
why would a successful person even try.
#10 Eyes wide shut on 11.24.17 at 5:54 pm.
The stupidity of majority of the masses and their financial illiteracy is mind-boggling. No wonder Canada put a drama teacher with no experience in the PM’s chair and the Americans elected an orange clown as their President. It is a flawed democracy that we pride ourselves in. Liberals or Conservatives, Democrats or Republicans – they are all the same. Nothing changes. They are all hungry for power and money and will sell their souls and their countries to achieve both. However, it is not the politicians who are to blame. We, the people are. We are the classic educated illiterates – uninformed, materialistic morons with power to vote. We do a miserable job in managing our personal finances and expect the Government to do it for us. Until we become an informed and a financially prudent citizen, nothing will change.
Calling 400 posts by midnight.
Had a shit year with consulting, gross was only 138k last fiscal year. Only 5 months of work.
Book is doing good. Best Invoice and Keys Me on track to total a million this year.
Off shore forex. Wouldn’t you all like to know.
Oh just in case CRA is taking notes.
Everyone knows I’m a bull shitter, a creative writer.
Wondering how much you spent so far on tracking my off shore activities.
Zero in my name. Good luck with your search while I compound huge. Proxy servers and encryption and a ghost that trades for me. Smoking Man Ghost.
If memory serves me good, we were close to 98k each (me bit above, mrs NoName bit bellow) dysfunctional family of 4.
income/tax/marginal tax rate.
income/tax/marginal tax rate.
#13 Cecil Henry on 11.24.17 at 6:03 pm.
Income tax is theft. You want a benefit?? YOu pay for it. YOu don’t want it, then don’t pay. Income pay flips that. Now your a piece of livestock. Its obscene.
TAx should be a flat tax.
And yes we pay far too much tax, to be controlled and coerced with ONE vote every 4 years.
This is communism, and its hell.
Yuri Maltsev: Why Socialism Will Never Work.
The modern Liberal’s efforts to attack the successful through government without openly initiating a confrontation, by cloaking their assaults within layers of phony empathy. (Phoney because the Liberal will only sate their empathy with the money of others.
If you’re getting everything for free then someone ELSE is being robbed with your complicity.
Steal from the productive: envy as social policy.
A serf paid 10% in taxes, and we pay 50% (and its not enough). NO MORE.
What is your fair share of what someone else has earned. It has to be EARNED before it can be taxed and stolen.
Otherwise why work.
#14 Bilious Festeroni on 11.24.17 at 6:05 pm.
Mostly a single earner (97% of income)
$37,200 in tax, CPP, EI, etc.
Expecting that CPP and OAS won’t be around by the time I hit 65. Planning on supporting myself.
My wife and I between us grossed about 40K last year. We paid almost nothing in income taxes thanks to both being self-employed, with lots of write-offs and making (relatively) large RRSP contributions.
No house, but a high six-figure portfolio.
#16 Democracy Is Mob Rule on 11.24.17 at 6:08 pm.
Taxes were such a burden during the Roman era that being close and a good friend of the emperor gives you a big tax exemption. As its citizens suffered from high tax rates which resulted to poverty, the Roman elites were enjoying the good life, even making a direct path to high office.
Merchant’s don’t have enough money to pay their taxes and still have something left for them. To avoid fines, a majority of traders were forced to sell their only source of livelihood just to pay their dues. The result is lesser and lesser tax money as years go by and an ever increasing tax rates as a result of less market activity from bankruptcy.
Love it when Liberal-NDP voters get bit in the ass by their own stupidity. Vote for more entitlements cause I’m maxed out.
Encroaching socialism will ensure our “black market” economy grows at a healthy clip. You might want to stay on the right side of the law, but ……
#19 Guy Incognito on 11.24.17 at 6:09 pm.
Well 110k salary and whatever gets deducted I pay.
Rrsp gets me a 7k refund cheque.
Another $35k in airbnb and basement apartment rent pay no tax F you Justin and Bill. Not worried about airbnb shakedown because I don’t live in city.
EVERYONE in Canada – including rich people – pays way too much tax in relation to what they make, and the services they receive.
The government takes your taxes and basically flushes half of what they take down the toilet. Nobody seems to care enough to do anything about it. When the government needs more money, they simply raise existing tax or introduce some nonsense new tax (IE carbon tax).
The question (to me) is how do we hold them to task for the amount of waste? Voting them out once every 4 years? Não esta bom o suficiente. When a gov’t organization wastes billions of tax payer dollars (example – the Phoenix pay fiasco) , the people running the show who supposedly are providing oversight need to lose their jobs, lose their pensions, and get booted out the door. How to make this happen?
Over taxing the rich is a rather lazy way of generating dollars – why should the rich be taxed any differently? It’s not a crime to be successful – in fact doesn’t this country want people to be successful? Maybe it’s not worth becoming a doctor, lawyer or successful business person.
This is just for me not my spouse:
That’s under 20%. Not bad but my earnings aren’t especially high.
“Families now receive $6,400, tax-free, for each child under six and $5,400 a year, per kid, for 11 years after that.”
“This week the prime minister committed $50 million to survivors of residential schools in Newfoundland (before the province joined Confederation).”
OK, point taken about this Liberal Government finding any excuse to give money away without being bound to find appropriate sources of revenue to pay for it. Their irresponsibility with our tax dollars is simply abusing the financial illiteracy of our population. We will pay dearly for this government’s financial mismanagement.
That being said, with respect to the $50M settlement and apology, the harm that was done under the residential school program was done from the period 1949 through 1978. Newfoundland joined confederation MONTHS after the first schools opened. In the decades that followed, CANADIAN aboriginal children were taken from their families, stripped of their language and culture, and in most cases sexually and/or physically assaulted. Because the schools were opened while Newfoundland was a distinct colony and because the federal government did not directly steal kids from their homes (they financed the provincial government department that did it post-confederation), the Newfoundland aboriginal population was explicitly excluded from the government’s past apologies and settlements on this issue. I can see how that is both emotionally hurtful and financially unfair.
I don’t expect everyone to be fully knowledgeable of all issues, but this one in particular does seem like it rights an inherent unfairness in what the government did in terms of past apologies and settlements. It deserves a bit of additional context, in my opinion. You can still disagree with the approach but the context for this particular giveaway is pretty critical.
Gross: $113k (including all benefits)
Tax paid: $24k (21%)
Marginal rate: 33.89 % (Ontario)
I’m actually OK with this. In fact, I don’t even mind contributing more (which I surely will, the way the Liberals are spending) if I thought it would be well spent. We don’t do as well for the poor, disabled and elderly in this country as we could. Yes, there are people who abuse welfare or disability systems, but I believe they are a minority.
#26 Debtslavecreator on 11.24.17 at 6:26 pm.
If you measure tax rates based on effective tax rates the self employed / Trust fund babies pay a much lower % of their true incomes and effective tax rates are very low for a small number of super rich precisely because a large proportion of their income comes from dividends, cap gains and trust holdings.
Another much larger group that pays a very low effective tax rate is RE investors who live primarily off rents.
I deal with many and the typical income is 20-30k line 150 and a net worth of 2-5 M.
The upper middle class group of executive and other high salaried employees are the true tax donkeys – people similar to me and my wife who pay a very high effective tax rate to see low income people get “free” tuition and soon a 2500/ year rent payment taken from hard working mid-high income pros and our children via reckless deficits.
No amount of tax is going to help these crook politicians.
We are on a path similar to Argentina and Venezuela but call it the light version since I am an optimist.
The non salaried rich need to pay more as a % of total /all sources of income but no one in Canada deserves to have more than 30% stolen from them by the majority who don’t pay much.
Especially the army of public sector workers and especially retirees who are not and never were part of the tax base.
Govt employees do not pay taxes.
This is socialism collapsing.
Contrib 24.9K to RRSP.
$22,000 taxes (CPP, EI, and income taxes)
-Maximize RRSP and pension contributions.
$4,200 donations and political contributions.
Personal Income and Taxes or Business as well?
What kind of lying, cheating, condescending, hypocritical, naïve, delusional, underhanded, self-promoting, flamboyant, crocodile tearing pink sock, apologizing, political engineering, socialist, misinformed, over emotional, selfie king, do we have running this country anyway?
Sorry, I don’t have your command of the English language as I’m sure I’ve missed a few.
I earned about 29k working retail ( #deplorablelatemillenial or however hashtags work, i dont use twitter…)
3k in taxes, 1.2k CPP.
Who really knows as all the “Panama/Paradise papers” have shown there are a lot of Canadians who work probably harder to hide their income and default taxes then probably at their day job.
Gen Xer’s and Mill’s are all hept up on saving the world, apologizing to everyone and writing cheques. They think, like they were probably raised, someone will save you and pay all your bills.
I think the subject line should be is where are all the dollars going to come from to pay for these programs? Not from you .62%er’s. They too busy hiding it.
This is not going to end well – probably sooner rather than later. NA MINHA HUMILDE OPINIÃO.
Did not pay, I receive. Smart tax planning. :)
Muito interessante. For a little perspective, this is Hawaii:
Tax deferred pension plans -29.
Plus about 1/month for health insurance.
Not sure what GT has against Costco. Buck and a half for a hot dog and a drink. Such a deal. Just about the only deal left in this country.
Think I’m doing my part and don’t like seeing the money wasted. In the past, I have voted for all 3 major parties at one time or another, but not liking the direction the current government is taking.
#37 Horatio Alger on 11.24.17 at 6:38 pm.
$690k (mostly T4 so prob $275k this year). I have paid over $5MM in taxes in the last twenty years. Você é bem-vindo. We are DINKs and have no complaints except that we can’t stand the waste. Got in a good heated discussion with some limousine liberals last night. They have loads of investments and real estate but want everyone else to pay more. I suggested a wealth tax (jokingly) — but they didn’t like that idea. I love Canada and don’t mind paying my share but it’s getting a little ridiculous. We live in the People’s Republic of BC. Who is John Galt.
#38 Goebaktuweir Ukamefrumm on 11.24.17 at 6:38 pm.
wife and I, no kids.
total income combined: $282,000.
total fed tax paid combined: 36,700.
total Qc tax paid combined: 46,600.
#40 South OK Fool on 11.24.17 at 6:45 pm.
Family of two boomers, one still working part time in a vineyard.
#41 After Communism on 11.24.17 at 6:45 pm.
Income tax: $4400.
Property Tax: $5800.
HST: I don’t know.
As pointed out here in the past when irritating lefties show up, this is not a social justice blog. We like money, income, investible assets, capital gains and financial independence. We practice tax avoidance. We’re into real estate, exchange-traded funds, designer dog treats, crypto currencies and mocking the deplorables who think it’s okay to be seen near a Costco.
I am still chuckling about your statement; what would we do without you? :)
Well, it has not been a great year for me due to my locality, harder times this year.
As many have mentioned, everything is just going up, it is mostly all those little things that bite your income that clearly adds up thus reducing one’s spending or savings power.
Probably around the 50 to 60k mark, 10 to 15k on taxes and a whole bunch more on all the municipal charges, cost of living, etc..
#44 Where does all the money go? on 11.24.17 at 6:48 pm.
Family of 5 (2 unequal earners plus 3 kids – school age over 6 yrs)
Total income from tax return – $207k.
Total income tax – $38k.
Property taxes – $4k.
HST, gas taxes, etc. – $ thousands more.
Family income: $107K. Income taxes around $20K.
Looking over the last thirty years or so, the middle class is getting eaten alive. I am in the middle class.
I really really wish i was in the top 1%, but I just can’t seem to make it. Easy money’s been made. It’s too late. And you need money to make money. Plus wages for middle class haven’t budged. Maybe all those big fat business men can pay us lowlifes a bit more. This way their taxes don’t have to keep going up.
So I’m ok with JT and company. And so are many Canadians:)
Over $80 K this year plus $500 under the table so far , take home is $51K. Wife retired at 50 and has no income. I’m proud to pay my tax and I have no issue with sharing my good fortune with others. But, why on god’s green earth did CRA fine me over $1000 for a mistake I made of my TFSA contribution unbelievable, and is a slap in the face. Fool me once, shame on you, fool me twice…not going to happen.
I think Norway has the right idea…total transparency with income statements…nothing to hide here.
#47 UnclePickles on 11.24.17 at 6:53 pm.
Don’t know why everyones worried about debt. The whole world is living off credit. Just enjoy it till everything collaspe on its on weight. Does anyone really think any of this debt is going to be repaid? The next generation is just going to borrow more to pay for more spending. And so on and so forth. We’ll all be dead by then for any of it to matter. As for our income, let’s say we took so much more in handouts than the tax we paid.
2016 $350k around $75k taxes. 2017 $500k taxes TBD.
Nice try though.
Come on Garth open the kimono – quantos?
$97,200/$5,377/5.5% but the number doesn’t capture everything because most of that is “eligible dividends and I already paid about $32,000(25%, foreign income so not eligible for the small business tax deduction, don’t know why hey I am bringing US money into Canada making Canada stronger!) of tax on that money through my corp so the real numbers are more like.
These are more like 2017 numbers I can’t remember 2016 off the top of my head my wife would be about the same I would be lower.
Personally I think for a working family to be paying $52,000 a year in taxes is plenty enough already. The problem isn’t that people don’t pay enough taxes, it’s that government spending is out of control.
Oh and I forgot my property taxes $4,500 and GST $6,800, $2,000 in Carbon taxes and whatever other taxes are embedded in Gasoline, smokes and booze So let’s call it roughly $65,300 in taxes on $162,500 income so combined we look like this:
It’s actually a little higher than that because I didn’t include all the taxes.
Venezuela here we come!
$50k income last year & I would have paid $7k in taxes but I used the last of my tuition credits from getting a trade (I made Journey just over a year ago).
The problem isn’t really income inequality, but wealth inequality, especially dynastic wealth that undermines equality of opportunity within a generation or two of its re-emergence.
Taxes pay for roads, schools, hospitals, & other essential services. I tore the cartilage in my knee at sixteen, so I wouldn’t be walking/working today if not for socialized medicine. (I doubt my family could have afforded the surgery.)
In evolutionary biology, multi-level selection theory tells us that selective pressures operate at every scale they can. In other words, group selection is a real, and it operates as follows: selfish individuals beat altruistic individuals within the group, but groups of altruists beat groups of selfish people. Therefore, there is a dynamic tension in our evolution between selfishness & altruism that ensures that any group that becomes overpopulated by selfishness will fail. So pay your taxes ;-)
As for deficits, Garth, I said I would keep repeating myself if you kept complaining about them. Sovereign deficits actually help prevent financial crises & the collapse of capitalism. See Professor Steve Keen’s explanation here:
I just noticed that all in my wife and I pay more in taxes than she earns! She works for the government for free!
149000 family income, income taxes 22685.
this is only income tax, without property taxes, GST, PST, and many hidden taxes.
I made about $55,000, and paid about $6,000 in tax. I put a little money into RRSPs and a lot into TFSAs. Unmarried.
#57 Uncle_Scrooge on 11.24.17 at 7:11 pm.
I am ok paying taxes.
I am not ok with the government squandering what I pay on pet social justice issues (women’s rights in Madagascar…where they currently have a plague going on…like giving a kid without power an Xbox)…and needing to increase taxes to do so.
Wife and I combined in 2016 (personal income only):
From our income we pay.
$45K/year in child care costs. Have 2 kids.
I have stopped donating to all charities. Easiest way to send a message to people who lean a little further left than me.
You can still help people directly, don’t worry about the receipt, and tell the charities to get the money they need from JT.
Can you guess how many people tell you “I know it was a mistake” when you tell them JT took it first?
#15 tomohawk52 on 11.24.17 at 6:06 pm.
My wife and I between us grossed about 40K last year. We paid almost nothing in income taxes thanks to both being self-employed, with lots of write-offs and making (relatively) large RRSP contributions.
No house, but a high six-figure portfolio.
Overseas, nice life, but didn’t earn anywhere close enough to buy a house in BC…actually, scrap that. What do I need down?
OH, darn, nice lady at the bank or that sweet mortgage broker will probably qualify me for 500k without verifying anything, so a nice 1 bedroom crappy apartment on the outskirts of YVR. doesn’t matter if I can afford taxes, strata, emergency repairs etc…or not,
just as long as I get a sick piece of BC real estate. Yeah!
I mean everyone in Canada is a millionaire real estate guru. They deserve to pay high taxes.
#61 crowdedelevatorfartz on 11.24.17 at 7:16 pm.
My silk kimono is wide open.
Maxed my RRSP’s got back 5k(slammed it into a TFSA)
So I paid 13k in income tax.
All the other taxes I pay are the price of living in a silk kimono world.
Not enough and way too much!
But despite all that taxing and spending, they chose to renege on their promise to ditch the stock option deduction, something that mostly benefits zillionaire CEOs.
#64 Property Accountant on 11.24.17 at 7:17 pm.
Me & wife’s income, 125K.
My taxes 11K, her’s 6K, both RRSP deduction mexed out.
#35 Ex-Cowtown on 11.24.17 at 6:35 pm.
Not sure what GT has against Costco. Buck and a half for a hot dog and a drink. Such a deal. Just about the only deal left in this country.
There is always the IKEA breakfast.
Man am I ever glad I’m retired … the poor workers not only have to put up with all these taxes but the commute also. Stresscity.
#66 RE Legendary Agent on 11.24.17 at 7:20 pm.
Tax 85% of anyone who earns more than $100k a year.
Make all money spent on real estate tax deductible.
This is embarrassing..
$28k. I’m not sure how much in taxes but I always end up owing money.
Until recently I was an ECE. Not worth it. Even with the wage enhancement grant of $2 per hour my best year I think I made close to $30k. Divided by 12 that’s a whopping $2500 per month. It went quickly! With rent being close to a thousand a month, car payments, food, gas, insurance, there was hardly anything left.
The wage enhancement grant for us underpaid child care workers ends up being a loan as we usually owe money at the end of the year, so back to Uncle Justin it goes.
I wish employers would take off more taxes for lower income earners because having that extra bit to pay (I paid an extra $700 last year) when you’re a single person can be a bit much.
I try to save as much as I can but it really isn’t feasible. I hated that the government gave us child care workers extra money. It made me feel like I was on assistance.
So I have mixed feelings about his plan to subsidize women and low income earners. On one hand it would be nice but just don’t make me pay it back at the end of the year, Uncle Justin. And don’t punish the guys, either. We’re all in the same boat!
#68 crowdedelevatorfartz on 11.24.17 at 7:23 pm.
“The problem isn’t really income inequality, but wealth inequality, especially dynastic wealth that undermines equality of opportunity within a generation or two of its re-emergence….”
Ahhhh, the innocence of youth.
You’re assuming all govt has the best intentions with your tax money….
I used to think like you until I eventually realized the tax dollars I so willingly gave to the govt were being urinated against the wall in white elephant projects of dubious value or necessity.
Again and again and again.
When you see ALL levels of govt doing the same idiotic, wasteful election bribery year after year after year……it sickens you to the point you dont want to pay “your fair share” because it ISNT being spent in a wise or cost effective manner.
What did you “red seal” in ? Electrical?
#69 Asylum Seeker #67,350 on 11.24.17 at 7:23 pm.
Employment income: $387k.
Income taxes: $155k (no RSP room after pension adjustment)
Was an expat, returned a couple of years ago. Much as I love this country, the war on the 1% has me seriously considering leaving again.
#71 paying my share on 11.24.17 at 7:24 pm.
Sold some revenue property last year, with income and capital gain, wrote a check to CRA for almost $700K, ouch. Working like a dog had paid off well, but given the Gov gets more of the profit than I do, I decided to work more like a cat (less). Less money for the Gov and less for me. Somewhat missing the returns but spending more time with the family and curled up in front of the fireplace.
#72 Binder Dundat on 11.24.17 at 7:27 pm.
Gross household income: 189K.
Federal and provincial tax paid: 39K.
#28 Pablo on 11.24.17 at 6:29 pm.
$22,000 taxes (CPP, EI, and income taxes)
-Maximize RRSP and pension contributions.
$4,200 donations and political contributions.
$4,200 donations and political contributions.
that is not tax! and number is deceiving, i donated to flat earther 75cad earlier this afternoon, website shows “tax rebate” on donation and is in 50cad range.
so basicly you donated 1/2 of that amunt.
noun do·na·tion \ dō-ˈnā-shən \
Definition of donation.
: the act or an instance of donating: such as.
a : the making of a gift especially to a charity or public institution.
b : a free contribution : gift.
not 1/2 its 1/3 typo, but you guys probably figured that one already.
#75 Guy in Calgary on 11.24.17 at 7:30 pm.
140k-150k household. We received a large refund due to claiming deductions since we moved from Ontario to AB for work (with more carried forward since we moved later in the year). Due to having a reasonable idea of what we’re doing, I do not think we will ever be in a position where we pay tax at the end of the year with our current incomes.
Ah, the make believe list of wages and taxes.
My wife makes $103,000.
We both have defined benefit pensions in Ottawa (Municipal and Federal), have amazing job security, extremely low houses prices in Ottawa when we bought (I’ve never had a mortgage over $140,000) and guess what?
Trudeau still sends me $212 a month for having kids (7 and 4) because I’m apparently “Middle Class”.
LOL, this country is going to be bankrupt soon.
#78 After Communism on 11.24.17 at 7:34 pm.
@53 knee surgery is less than a car and less than house rent. You exaggerate. Maybe you would be frozen in a snow bank without free $40billion in housing, if your family can’t offord to lend you the couch.
#33 Rick on 11.24.17 at 6:33 pm.
Did not pay, I receive. Smart tax planning. :)
I live in France. Taxes are calculated a bit differently in that there are higher deductions than in Canada (for pensions, social security, etc) and the subsequent tax bill after filing is a percentage of take-home pay only.
Total tax bill, including deductions, is about 50% on a roughly 60K€ income (
90K$ CAD). Of course as in Canada the pension contribution you’ll eventually get back provided you live to 60.
Yes, it’s high, but it’s a trade off for the enhanced safety net, employee protections (almost impossible to get fired here), heavily subsidized transit (the Paris metro costs far less than the Toronto subway, for 7 times as many lines + regional RER routes included) and general lifestyle perks like minimum 5-week paid vacation. All the same, the taxes are such that I will likely not stay here long term.
It is my summation that Steve Keen is off his rocker. Check out Milton Friedman or Thomas Sowell or even Ludwig von Mises or Murray Rothbard to get an idea how economies really function. Or Adam Smith for that matter.
This stuff isn’t rocket science and John Maynard Keynes and all who followed him are merely government apologists. When the government is looking to run a deficit, all they have to do is put out a few grants and they’ll find someone to say deficits are a good idea. Although Keen has gone beyond they pale when he describes them as “helping”.
Sustained structural deficit financing leads to default and bankruptcy, for individuals, corporations (except Tesla) and nations alike. It is mathematically impossible for any other result. Anyone who got a “C+” in math knows this. The only thing that has kept the current government debt sustainable is inflation, which reduces the current obligations of past debt. They have to inflate the debt away at 2% per year or the system collapses. That’s why they do it. Not because inflation is good for anybody. And of course deflation would be a total disaster because it would make all those past obligations even more valuable (and expensive to service) in the here and now.
This is why inflation must be positive, even if it means rates go negative. How you can have negative interest rates in a time of positive inflation doesn’t make any sense to me, or even an interest rate below the stated inflation rate, but times are strange indeed.
And anyway I don’t believe the government official inflation numbers any more than I believe the unemployment numbers. Unadjusted inflation is probably closer to 4% than 2%. The model is pretty complicated, and all the adjustments lower the reported rate.
Also the effect of inflation is pretty insidious from a tax point of view. Maybe you get a 2% cost-of-living increase at work. Sound fair because inflation was 2%. Except that the whole 2% goes in the tax program at your marginal rate, so you don’t get 2%. Every now and then they adjust the brackets but not very often. They should adjust them by inflation every year, but they don’t.
#82 MSM-Free Zone on 11.24.17 at 7:37 pm.
I’m a blue collar deplorable, grossed just under six figures (nothing really celebratory in the $GTA$), of solely wage income last year, stuffed my tax-deferring RRSP with whatever pitiful amount my uncertain and fragile private DB pension would allow me, and dropped about a grand on tax-deductible charity last year.
Being a deplorable, my returns are not complicated, and my Turbotax software tells me I paid around 21% in total income taxes for 2016.
Actually, I don’t mind paying income taxes (roads, sewers, police, EMS, heath care, education, etc) as long as they’re spent responsibly, i. e. no Harper fake lakes, corrupt F-35 cost overruns, Baird/Clement gazebos, Kenney TFW hypocrisy, Fantino veteran abuse, KPMG off-shore tax scam forgiveness, etc.
This is my Canadian paystub every two weeks:
$3,091.35 withheld in tax.
$64,918.35 withheld in tax annually (more than my wife makes in a year)
I have a unique skill set that allows me to make this much, but it does really make me wonder why I would stay in Canada. When as I earn more the tax bill gets even HIGHER!!
So many other beautiful countries around the world that would charge me so much less to live and work there.
Please just give us a FAIR flat tax that EVERBODY PAYS!
#84 MSM-Free Zone on 11.24.17 at 7:42 pm.
#38 Goebaktuweir Ukamefrumm on 11.24.17 at 6:38 pm.
Racist, bigoted, troll alert.
“We believe that Chinese buyers spark the cycle, while local investors chase the momentum,” Credit Suisse said.
The story is about Australia and I am tired of your anti-Chinese posts. You are gone. & # 8212; Garth.
The moose is on the lose. How else would the money go missing unless there’s a serious spending spree?
Garth, you are not taxed enough. Now you, a white man, have appropriated the Belfountain General store, restoring it to its heinous colonial roots, it is only fair that it is now turned over to a diverse social justice collective so they have free space for their non-binary yoga and origami classes and diversity initiatives – something’s very wrong with the colour of snow.
Now, before you turn over the keys if you could also leave $1 million in cash inside. This is so the three volunteers, who will run the space, can get through the first year and conduct overseas study tours on diversity in Cabo, Barbados, San Juan del Sur.
No maintenance or cleaning will be conducted over the next five years, so the space will soon reach its use by date. However, you will be allowed to buy it back at that time from the scj in a state of disrepair for a minimal sum of $3 million dollars.
#88 FOUR FINGERS WATSON on 11.24.17 at 7:44 pm.
Garth : sleeping at the switch ?
#38 Goebaktuweir Ukamefrumm on 11.24.17 at 6:38 pm.
DELETED. Desculpa. The idiot got by me. & # 8212; Garth.
#89 Guy in Calgary on 11.24.17 at 7:45 pm.
“140k-150k household. We received a large refund due to claiming deductions since we moved from Ontario to AB for work (with more carried forward since we moved later in the year). Due to having a reasonable idea of what we’re doing, I do not think we will ever be in a position where we pay tax at the end of the year with our current incomes.”
Obviously had tax deducted at source and netted a tax liability.
#90 FOUR FINGERS WATSON on 11.24.17 at 7:50 pm.
CPP benefits will be increased. Families now receive $6,400, tax-free, for each child under six and $5,400 a year, per kid, for 11 years after that. The age at which people get seniors’ pogey was rolled back to 65 by the current government. The cost is $69.4 billion. (By the way, OAS has an unfunded liability of about $560 billion – to be paid by future citizens.)
You don’t get elected by telling the truth and taking stuff away Garth. You get elected by lying and handing out freebies. Turdo is on a roll, Libs will get reelected with a bigger “ majority “.
#38 Goebaktuweir Ukamefrumm on 11.24.17 at 6:38 pm.
#92 Lost. but not leased on 11.24.17 at 7:54 pm.
During Pierre Turdeau’s reign..Canada’s National Debt rose over 700%, no other Prime Minster even comes close.
Is Justin up for the challenge? bwhahahahahahaha.
Trump is spending way more and reducing tax revenues big time.
Let’s see which Country blows up first. Canada or the US of A?
Both countries will always be in debt.
Question always boils down to……Corporate Welfare which the US of A had to provide….not that long ago.
Or social welfare…..which for many countries is why democratic systems came into existence….to share the wealth….
This is why Monarchies fell in many places…..corruption…disregard for the ordinary person….don’t forget the ” let them eat cake”.
We too in Canada suffer from the Wrong Doings of past societies and power gluttony…..can’t hide it forever.
Politicians need to heed.
Fantino and Ernie Eaves now selling marijuana ….go figure.
The smell of greed that changes old principles…..leopards do change their spots…..lefties or righties?
#94 Pete from St. Cesaire on 11.24.17 at 7:59 pm.
By the way, OAS has an unfunded liability of about $560 billion – to be paid by future citizens.
People who haven’t even been conceived yet certainly haven’t consented to be burdened with this. They won’t want to be citizens (for other reasons too). You can be sure that by then it will be made nearly impossible to leave the country (just like in North Korea, East Germany, Cuba, etc.)
#23 Leinnay on 11.24.17 at 6:17 pm.
“Families now receive $6,400, tax-free, for each child under six and $5,400 a year, per kid, for 11 years after that.”
Quite right. I just ran the calculator for a hypothetical couple earning combined 120K a year, paying 18k in rent, with two kids under 6. Result is a pitiful 5k total in tax credits (vs maximum possible 13k).
Trudeau is determined to massacre the 75-90 percentiles in order to reward irresponsible life choices by lower-income people. The truly rich, as always, get off scot free.
CPP benefits will be increased. Families now receive $6,400, tax-free, for each child under six and $5,400 a year, per kid, for 11 years after that. The age at which people get seniors’ pogey was rolled back to 65 by the current government. The cost is $69.4 billion. (By the way, OAS has an unfunded liability of about $560 billion – to be paid by future citizens.)
Yes, and for many families these deposits into their bank account are considered a cash windfall which was never the intent. They enjoy a night out at a nice restaurant or book an Orlando family getaway while they build-up consumer debt and attempt to pay down their mortgages on over-valued real estate!
Most don’t have a nickel saved for retirement and many have little more than a pittance in RESP’s.
So the Liberals are spending way more than the Govt is taking in…adding to the budget deficit… what’s the knock on effect? Future Govt’s will have to reduce spending and services? Come on Boomers I need your help, you must have seen this play before ;)
I mean, the US just keeps growing their debt don’t they?
#98 Anonymous_1235 on 11.24.17 at 8:12 pm.
From a US-Based Dog, resident in a northeastern tax-free state.
Married Filing Joint.
Adjusted Gross Income :135,000.
Fed Tax Payable: 14,500.
The stuff nobody seems to talk about:
Social Security. Medicare: 7,000 paid by me, 7000 paid by employer.
Property Tax : 10,000.
Health Insurance : 20,000 (employer pays this but lose job, you’re on your own)
A little under 100,000 beans. It seems to be enough to float me and my interests and I am debt free. More importantly I happen to live in the best province in the country for taxation rates, as well as its many other attributes.
But the income tax isn’t the whole story. No sales tax in Alberta. Health care premiums paid by the province. Lower auto insurance ( by at least 1/3 using BC as a comparison) and lots of other smaller savings in areas where the Alberta government minds its own business and allows the market to set prices such the sale and selection of wine, beer, etc. All of us should pay our fair share and I have no beef with anyone who educates themselves and uses legal means for tax ‘avoidance’. But I agree with yesterdays post from Domain #398 – slap the cuffs on the cheaters.
Everything that comes out of T2’s mouth is all about looking and sounding stylish. Duterte sure put him in his place though….
This sounds like inspector Turner for. The CRA is coming to arrest me if I don’t send him some gift cards:
I’m not going to bother hauling out the tax papers but:
Total is pretty much equally split between the wife and I. Wife has a contract position and we save every receipt. Whatever we paid, it was undoubtedly low for the income bracket, tax return was 5 figures.
But the real action at the IHCTD9 compound is knocking over taxes on consumption. Need to prepare for the coming T2 nuclear winter.
Please Garth, for the love of God don’t even think of opening the kimono.
For the first time I heard a colleague at work referring to OSFI B20. This individual was explaining (in a panic) how they were closing on a home purchase which they pulled into December (from 2018) to avoid the new regs. $1.2M on a bungalow in the inner 905!
Gets better, they explained that some folks closing in the new year were busy borrowing large sums from friends and family to plunk down a massive downpayment in order to do an end run around B20!
Who needs an poorly regulated Credit Union when Family Savings & Loan is ready and able: Their new slogan …
“Your family is richer than you think!”
#68 crowdedelevatorfartz on 11.24.17 at 7:23 pm.
What did you “red seal” in ? Electrical?
fartz, fartz fartz…
Sorry Garth totally off topic!
The death of David Cassidy; whether a fan or not; I was not particularly, but I just read a story about his last words before death, ” So much wasted time”! Wow, imagine that to be your last words in life; it is an eye-opener. Here is a link to the story if interested:
We are OK with paying our taxes provided it goes to social programs, education, health care, the CBC, funding for research, the arts, etc. i. e. things that help the social fabric and can spur new technologies. I am less enthused with T2’s recent moves of wasteful spending… and am becoming more disillusioned with him as time goes on.
Household income (2 professionals) 355K per year. Paid in BC roughly 112K in BC and Fed Taxes… no sprinkling for us, hiding in a business or other writeoffs etc…
#108 crowdedelevatorfartz on 11.24.17 at 8:34 pm.
I forwarded it to two of my buds.
An electrician and a millwright……
#80 Howard on 11.24.17 at 7:36 pm.
I live in France. Taxes are calculated a bit differently in that there are higher deductions than in Canada (for pensions, social security, etc) and the subsequent tax bill after filing is a percentage of take-home pay only.
Total tax bill, including deductions, is about 50% on a roughly 60K€ income (
90K$ CAD). Of course as in Canada the pension contribution you’ll eventually get back provided you live to 60.
Yes, it’s high, but it’s a trade off for the enhanced safety net, employee protections (almost impossible to get fired here), heavily subsidized transit (the Paris metro costs far less than the Toronto subway, for 7 times as many lines + regional RER routes included) and general lifestyle perks like minimum 5-week paid vacation. All the same, the taxes are such that I will likely not stay here long term.
Sorry I meant 40% tax, not 50%.
50% income tax (incl pension) on 60K€ would be insane even for France.
“There are some 270,000 people in Canada who earn over $230,000 a year, in the 53% tax bracket. That’s 0.62% of the population. The average tax they paid (before the latest increase) was $160,000.”
Comparing a minimum of $230,000 income in this tax bracket to the average tax paid of $160,000 is misleading. If you’re going to say they paid an average of $160,000 in taxes, why don’t you indicate what their average income was?
truth be told: the privately owned global banking system is in an long overdue death spiral.
People come here and type stuff like: capitol gains exemption on a house is ‘profit’ or a ‘windfall’; in reality it is neither, it is an exemption from being taxed on inflation (inflation being the hidden tax). A 25 year amortized loan will see the borrower pay about double the original principle amount. When a person buys a house in a desirable area for 500k he is virtually guaranteed that the house will be worth about one million in 25 years: it’s called inflation, show me the windfall, show me the profit - you cant. you spend a million , you take a million when you sell, that’s not business, that’s not ‘profit’
#112 Buforf Wilson on 11.24.17 at 8:46 pm.
$263,164 Earned Income.
$77,400 Income tax.
If Trump’s tax plan goes though and we avoid a stock market correction i’m in line for significant capital gains from my portfolio. If some gains were realized in say, Jan/Feb 2018 and the Feds changed the cap gains tax inclusion rates in the March 2018 budget, does anyone know if it would be retroactive to my gains, or would it only affect gains realized after the budget?
110,000 family income, about 20,000 in tax as some of it is passive income.
I also have a question for blog dogs:
What is wrong with shopping at Costco? To put it differently, what are the financially viable alternatives for a family with four children? I have tried to reduce our grocery bill by exploring all of the other options for buying food in Canada/Ontario and always end up with buying most of it at Costco finding it impossible to match their quality/price ratio elsewhere. Any ideas are highly appreciated.
#115 Popeye the Sailor Man on 11.24.17 at 8:53 pm.
Tax form says the following;
Total income: 118K.
Taxable income: 87K.
(have lots of deductions; stay at home mom and two disabled children)
Do you realize what a vicious attack you continue to mount on Canadian socialism? Do you really think that this new generation, so dependent on the nanny-state, so arrogant, so disastrously educated, can ever grasp the futility of concentrating on dividing up the pie instead of growing it.?
Only when they have consumed all the Seed Corn and.
collapse comes will we rise from the ashes. The libs are in a dream world, clueless in economics and brain-dead as to human motivation. What a calamity.
But how noble of you to continue tilting, Don Quijote.
Nothing is wrong about shopping at Costco or elsewhere; do it myself; it was tongue and cheek; we do what we have to! :)
#118 Trojan House on 11.24.17 at 9:02 pm.
Justin – I pledge to give you 100% of my income because I don’t mind paying my fair share.
For one year I was considered “rich”. Remember your article yesterday on how bad mutual funds can be. Well my husband had a lot that he kept for years and the capital gain was what pushed my income into the stratosphere for one year when he died. It was get rid of them all or pay 2.4% on everything a year on all of it. So, it’s not necessarily just the rich that get caught in this net. Widows who inherit stocks or mutual funds get caught too.
#120 The real Kip on 11.24.17 at 9:05 pm.
I am looking forward my CPP/OAS should go well with the DB pension. Yesterday you told me I had “no money”, today you want to know how much I made last year? Sem chance!
Rock on Justin, I’m with you all the way!
Oops sorry, fat fingers, meant to say tongue in cheek.
Just in-case you are wondering:
#122 Parksville Prankster on 11.24.17 at 9:14 pm.
72K Split between me and the wife all as T5 Dividends which are then grossed up and given a tax credit because they are invested in Canadian companies and our own holding company. Taxes last year, about $900 (nine hundred), and a $1,400 invoice payable to our accountant who does both our TD1 general and Corporate filings at the same time.
Correction? We get $1812 in child tax benefit total for two kids including the disability supplement for one. Family income $148K. This benefit is sliding scale and not at issue for me, since it targets child poverty.
“Under the Canada Child Benefit, families with incomes of $30,000 or less receive $6,400 per child under age 6 and $5,400 per child per year for children aged 6 to 17. The benefit is gradually reduced as family income increases above $30,000.”
@$49 – Rich on 11.24.17 at 6:57 pm.
“2016 $350k around $75k taxes. 2017 $500k taxes TBD”
Could someone please explain how this is possible? Massive RRSP contributions?? Capital Gains?? Dividend income?? The taxes in any province on $350k are $130k+
Average Rate: 39.17%
This is all income (no capital gains, dividends).
#68 crowdedelevatorfartz on 11.24.17 at 7:23 pm.
Yes, I play with lightning! And we all wish the government would be less wasteful with tax dollars, me included. However, many don’t agree about what to spend the money on, hence politics…
#78 After Communism on 11.24.17 at 7:34 pm.
$10k these days for an ACL replacement, including.
$2k for the procedure and.
$8k for the use of the facilities. My mom is poor and always has been. My dad was self-employed and worked hard, so he would have paid for it, but it wouldn’t have been easy. Yes, I was exaggerating for effect, but not by much.
#81 Nonplused on 11.24.17 at 7:37 pm.
Milton Friedman taught us YT = MV, but he missed a term that makes all the difference: dD/dt. So the equation should read YT = MV + dD/dt. This is what Steve Keen teaches, and if you examine the empirical evidence for yourself, you can see that it is true.
Monetarism teaches that the correlations between credit (i. e. change in debt) and employment – as well as between credit and asset prices – should be zero. But the correlation is often 0.5 or greater, for which Keen offers a cogent explanation. I’m sorry you think Keen is an apologist for government, but that is your ideology. The facts speak for themselves & Keen makes the BIS data series’ that he uses available to everyone for cross-examination here:
I suggest you expand your knowledge-base beyond monetarism. Sustained deficits are only a problem if growth doesn’t keep up. Tax receipts scale with GDP, so if the debt-to-GDP ratio is kept constant, government debts don’t ever become a greater burden relative to their income, cetis paribus.
More than that, since debt IS what we use for money, eliminating it removes the medium of exchange from circulation and creates deflation. That’s what happened during the Great Depression: people were paying down debt, which caused unemployment to spike & GDP to fall faster than debt was being repaid. (In other words, debt-to-GDP grew as people paid down their debts because the economy shrank even faster.)
Government surpluses, for example, mean they are taking more in taxes than they pay back into the economy, which shrinks private sector bank balances. You & I can only accumulate larger bank balances if someone else accumulates larger debts. Look up “sectoral balances,” or watch David Graeber explain here:
Months ago the plan was to. make it retroactive Who knows now, but will be spelled out in the bill if it should pass.
I paid over $150,000 in taxes last year on just over $300,000 in income. I also paid a $28,000 land transfer tax, and I’ll pay a fat capital gain in 2018 when I sell these Facebook shares that are getting too high risk. I can’t wait to vote these Liberals out, but we better get a socially conservative alternative. God dammit, why can’t people love people while still caring about money?! Seems we only get one or the other. Harper was an A-hole.
Self employed . Hide cash in a corp , yeah I’m toast.
Taxes paid - no idea , block it out . Wife would know she writes the cheques.
#129 OlderbutWiser on 11.24.17 at 9:29 pm.
2017 T4 YTD – Gross $804,206.27, total taxes withheld to date (incl CPP and EI) – $405,151.49.
I am quite certain that I am paying more than my fair share! This country is not the place to live if you are a high earning employee. You are clearly in the cross-hairs. Thank God I am retiring this year and will have the option to live anywhere in the world that I want. Trudeau and his war on those who work their a$$es off can go to hell…..
Sunny ways, sunny ways. The liverals want to pretend that repairing every social ill is possible for free. The harpercrite selfservatives sucked people into believing that any tax was wrong and that you too could be rich by buying a house. Tweedledee and Tweeduldum are both sides of a dishonest political spectrum. I have no problem paying my share of taxes. I like paved roads, fire engines, ambulances and hospitals, etc. I don’t like knowing that millionaire politicians and their billionaire buddies aren’t playing by the same rules they apply to me. Wasn’t it the Bronfmans who had an advance ruling by the cra that it was ok to move billions offshore without taxes when Cretin was cutting back on us and wasn’t p martin the finance minister who changed the rules about foreign flag ship ownership after reflagging his fleet. They all talk ethics but behave in ways that make their ethics questionable. Hated Harper, but at least I knew what he was about god bless.
#131 Vampire studies GMST on 11.24.17 at 9:30 pm.
Mrs V and I made about $55k each and had deductions.
totalling $15k and paid about $16k total tax, not incl CPP.
Good to see all blog dogs are are taking home 180k, but… “ya know, I only work like, 2 days a week”…
I thought the average family income, based on stats can was around 75k in BC, 85+- in GTA and 90+ in Alberta. Or have things changed?
I guess things have changed in Canada. You are now a loser if you don’t make over 100k? Agradável. But then again, with 900k house prices, I guess that is the only way.
#81 Nonplused on 11.24.17 at 7:37 pm.
I’ve only read limited amounts of Adam Smith (I keep meaning to read more!) but I thought you might like to see some of what he really thought, as opposed to the pop-culture interpretation of him as the champion of the invisible hand:
“No society can surely be flourishing and happy of which by far the greater part of the numbers are poor and miserable. "
“In regards to the price of commodities, the rise of wages operates as simple interest does, the rise of profit operates like compound interest. Our merchants and masters complain much of the bad effects of high wages in raising the price and lessening the sale of goods. They say nothing concerning the bad effects of high profits. They are silent with regard to the pernicious effects of their own gains. They complain only of those of other people.”
“It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.”
Hardly the bastion of right-wingery that many believe…
(As a brief aside, the quickest counter-argument I know to the “invisible hand” – the idea that self-interested behaviour *must* result in a pareto-optimal outcome – is the prisoner’s dilemma. Rational self-interest can easily result in sub-optimal outcomes for everyone, which is probably why humans evolved to be pro-social rather than rational.)
I have no idea what I or my wife paid in tax. I tend to pay more attention to what things cost. No point in saving 5% of your income if you then pay $2 for a $1 cucumber, and $10 for a bottle of wine that you can make for 50c.
Can’t afford Canada. Left.
Gross Income (2016) including housing allowance: $264,000.
Net Income: $264,000.
According to my 2016 tax return, with just little old me since I don’t have a spouse yet:
Total Income 241,510.
Taxable Income 192,330.
Total Tax Payable 67,216.
27.8% of my Total Income.
34.9% of my Taxable Income.
I’m single, 40 years old, and I guess a 1%er. Or a .62%er?
Now in Cayman where I pay 0% income tax.
Lindsay Shepard my hero. This is a true feminist.
She secretly recorded what acedimia is all about. Total retarded man hating lesbonic heretics.
If you want your child to become a drug addict then commit suicide send them to university.
Google Lindsay Sheppard listen to the recording.
Pathetic communist teachers at it again.
#139 I don't really like TO on 11.24.17 at 10:02 pm.
Me + Wife in early 30’s in TO.
Income: 87k + 55k.
Do your own % calcs.
Per the stats I guess we are above average. Sure don’t feel like it, but I guess its that mentality which helps us save. Renting for life by the looks of it.
See what I did there? And Ontario increased its income tax rate yet had a shortfall in income tax revenue to projections despite a growing economy and employment levels….
#141 Ace Goodheart on 11.24.17 at 10:07 pm.
1% don’t pay tax. Middle class pay tax. The 270,000 people you refer to are middle class. Upper middle class but middle class all the same.
1% will never pay tax.
Well, since it is Stripper Night at Greaterfool, I will open the kimono and show the Full Monty.
I am probably a case study in how tax disincentive for productivity works. Prior to the past year, I worked about 1.5 FTE of a doctor job. The extra 0.5FTE was stressful work at night that was very hard to fill. So, I did it for years. I figured that it was a need to be filled and that I should make hay while the sun was shining. I am glad I did because the money I socked away gives me more options now.
I didn’t mind paying my fair share of tax actually, but it is now getting punitive to work both from taxes and the hostile public view of people who work and make that much money. So, I stopped doing the unpleasant work this past year. I now work about 1 FTE. Along the way, my wife had to quit her career because my hours we so erratic and we have kids to provide stability for. I am the main income earner, but she works as hard as I do both doing work for my practice and keeping our household running. We are all happier that I work less now. It has left a gap to cover at the hospital, but not my cross to bear anymore – I did my share.
Cue the bad music and flashing lights. I pulled out my tax filings and matched them up as best I could.
Gross clinical income:
Tithe to the University I work with: 35K.
Net business income including investment returns: $663K.
Corp Tax Bill: $106K.
I pay us a combination of salary and dividends from what is left in corp. I made max RRSP contribution (spousal of course). Household personal tax bills for 2016 were 182K.
So, on earnings of about 700K after overhead, we paid $288K income tax (41%). Add in the Ontario government OHIP clawback and University tax and it was $348K (50%).
That was punitive enough for me to decrease my work since I was making.
35 cents on the dollar with my marginal tax rate, OHIP clawback, and University tax. Not worth it.
My projection for 2017: Income.
200K combined corp and personal. It is still a tonne of money and I have a great job that is much more livable.
Hope you found that as titilating as I did.
If anyone moans or criticizes about how much I make, don’t expect me to make any apologies. I trained for 15 years to land the job I have, accrued debt, and I had to be “top of my class” each step of the way. I am on the high end of doctor incomes, but also have a high stress/bad hours specialty with a high burnout rate. I and my family have paid the price for our success. We have decided to stop that nonsense.
My wife and I have already discussed it and if this Trudeau crap continues after the next election it is a signal that the public likes the current direction and wants more. We have the options of me going part-time, retiring, or going to the US depending on what the environment there is like. We don’t want to be caught with the last ones crowding the exit. I honestly will likely continue to practice for love of medicine aspect of it for many years. I am just not sure where and whether I’ll continue to jettison the less pleasant aspects of my practice.
I worry for the future of our country if we continue down the current path of recklessly spending and taxing “the working wealthy” to death. It seems nice on the surface, but the reality is that incentives affect human behaviour. If we provide too much incentive to produce the minimum needed and punish excess productivity in others, then the outcome is predictable.
#143 MSM-Free Zone on 11.24.17 at 10:18 pm.
#107 bring_it_on on 11.24.17 at 8:33 pm.
“….We are OK with paying our taxes provided it goes to social programs, education, health care, the CBC, funding for research, the arts, etc. i. e. things that help the social fabric and can spur new technologies. I am less enthused with T2’s recent moves of wasteful spending… and am becoming more disillusioned with him as time goes on……”
I gave t2 a chance to distinguish himself from the last band of arrogant, self-serving, two-faced Harpocrites.
Looks like 2019 is fast becoming a year of rinse-and-repeat.
#144 akashic record on 11.24.17 at 10:30 pm.
I worry for the future of our country if we continue down the current path of recklessly spending and taxing “the working wealthy” to death. It seems nice on the surface, but the reality is that incentives affect human behaviour. If we provide too much incentive to produce the minimum needed and punish excess productivity in others, then the outcome is predictable.
Family Gross Income – 220k.
Hmm, should I wait til 2019 and see if T2 is ousted.
1. Leave as non resident.
2. Pay 25% with holding tax.
3. Get Expat health insurance.
and come back after 2 years if sanity is restored?
Here’s my income for 2016.
Income Tax deducted – 16,984.
EI Premiums – 955.
As someone else mentioned – this does not include the 13% GST/PST on most goods purchased.
Wished that my taxes were lower. Could have saved some money to help others or even help myself.
#133 Adrian on 11.24.17 at 9:43 pm.
Read about Dr. Richard Clarke Cabot Cambridge-Somerville Youth Study. forget that Smiths invisible hand.
#132 Dan. t on 11.24.17 at 9:38 pm.
It’s always like this any time Garth asks us to give some sort of personal statistic. So take it all with a bit of a grain of salt.
It’s like a dating website. All the guys list their height as 3 inches taller than they are and all the women list their dress size 3 sizes smaller than they are.
Why would anon people do that? & # 8211; Garth.
#151 Leaving this country on 11.24.17 at 10:56 pm.
We are two professionals in the 1%
My income $256,882 – line 150 –
Taxes paid – $84,663.
Spouse’s income $161,042 – line 150.
Taxes paid – $29,891.
Wife’s taxes got reduced due to child care, RRSP, and capital losses offsetting capital gains.
Her corp $165,000.
Taxes paid $18,905.
So total income of $581,924.
Taxes paid of $133,459 not including property taxes, sales taxes, CPP & EI.
2016 was a low rate of taxes due to some capital gains. We don’t distribute any of the income from the corp and maximize our RRSPs.
With the attack on small businesses and increase in tax rates we are leaving Canada in 2018 and moving to Singapore. We’ll pay no more than 20% and get all the benefits that we do in Canada.
Interesting case. Thanks for the full monty :)
Canada is certainly going further down the path of taxing the working wealthy and in turn, more and more will cheat the system. Cheers to you sir.
I live overseas in a non tax country and the more I read here, the more time I’ll try and stay put.
Let me tell you that I fully understand your situation.
I am in the situation as you are but in another province.
MD FRCSC having worked all my life to be where I am right now.
People have no respect for us in this province and our ‘big’ income is always in the news.
75K in business related expenses (rent, secretary and tech salaries, etc.)
Taxes paid more than 300K.
You bet the liberals can go to hell and everyone who thinks that we are not ‘worth’ our ‘big’ renda.
I work part time 4 days a week and as soon as I reach the 5M portfolio this will become 2 days a week and once the 7.5M is reached, hasta la vista baby ! screw ’em !
#142 Loonie Doctor on 11.24.17 at 10:16 pm.
I appreciate the work you do and how detailed your post was. Just want to clarify a few things since this topic was front and center on our blog for a month straight earlier this year.
1) Canada does not have an “eat the rich”, or “eat the rich doctor” mentalidade. T2 was only elected because of the hate Harper crowd of morons and because he promised legalized weed for potheads. Now we are stuck with him and his stupid policies (witness the backlash the Liberals received with their pathetic tax changes earlier this year).
2) Schooling and debt do not mean anything anymore. Hasn’t since the 1990’s. We have lots of Phd’s with tons of debt and schooling working at Starbucks. Studying in med school is a privilege since post grad employment is guaranteed.
3) Something not mentioned very often is the chronic underemployment that exists out there. A lot of employment is contract/temporary work. A lot of people don’t have enough hours with one position and have to cobble together many jobs to make it work. The ability to work as many hours as you can is a positive, not negative.
4) We had a lot of great posts on here about the realities of starting up practice in the US. Some positives, but lots of negatives as well. If there is nothing more frustrating/frightening, it’s the thought of losing our best specialists/doctors to the US. I feel that threat is the origin of a lot of perceived hostility towards our MD’s.
#156 renting in Surrey on 11.24.17 at 11:14 pm.
150,000 gross income.
45,000 income tax + CPP + EI.
Self employed, rent, single, kids flown the nest, max out RRSP, max out TFSA.
#158 Oakville Owner on 11.24.17 at 11:21 pm.
Just under making the “Sunshine List” three years in a row. Married up 13 years ago to a smart, beautiful woman who holds her own in the private business world.
Sadly every last gross penny I earn and then some goes to cover the family tax bill!
Garth - Next meeting we need to work on legal tax avoidance options!!
#159 Steve White on 11.24.17 at 11:22 pm.
Here’s an observation. Our governments, all levels, waste tax dollars that both the hard working wealthy and hard working poor pay. Everyone has a story of government waste. If households were run like this, collectively we would be in trouble. It’s always different when it’s not their money.
The politicians are very skilled at framing an argument of us vs them. It divides the commenters of this blog. Perhaps the discussion should change to accountability for those in charge. Perhaps politicians with equal lack of financial knowledge should be put under the microscope instead of a left vs right argument.
#160 Fake News Again on 11.24.17 at 11:24 pm.
“There are some 270,000 people in Canada who earn over $230,000 a year, in the 53% tax bracket. That’s 0.62% of the population. The average tax they paid (before the latest increase) was $160,000. Together this tiny group of people (average age, 52) earn about 10% of all the income but pay 22% of all income taxes. Seems like a good deal for everyone else, but the prime minister says it’s not enough.”
The Govt in waiting – Federal or Provincial – that says:
“We are going to CUT the size of Govt by 15%” & # 8211; will win by a landslide…..
#161 Ace Goodheart on 11.24.17 at 11:26 pm.
Yours truly: 249,861.00.
Better and more responsible half: $72,000.00.
Taxes: Well you figure it out. We could support a small country with what T2 takes from us.
I earn more than 1/2 my income from dividends, which helps. The other slightly less than 1/2 is from running right now two businesses (used to be three).
I like to juice my returns. There is a way of doing that.
At any rate, just got back from the Christmas party. Way way way too much red wine. Drink tickets only good till 11? WTF Means you have to power drink, which is so stressful. I would rather just maintain it and plateau. Power drinking is so 1980s.
$70 + $30k salaries for me and my wife with approx $30k in tax. Business income of $210k with approx $30k in tax. Total $310k of which we paid $60k in tax. Directly created jobs for others who paid a combined $240k in income tax as well.
$30470 in tax +EI and CPP.
apparently my co workers say you get a lot of tax back if you work a lot of overtime, i’ve never seen it happen.
Why would anon people do that? – Garth.
Because they are anonymous. Nothing can be verified. You can get a reaction out of others, maintain your online persona/reputation, feel better about yourself and have fun doing it I guess? Basically troll.
That said, there are a lot of posters are truthful and that’s why I have been reading for years.
#160 Fake News Again on 11.24.17 at 11:24 pm.
“We are going to CUT the size of Govt by 15%” – will win by a landslide…..
-Along with a corresponding cut in services too right?
#165 TurnerNation on 11.24.17 at 11:50 pm.
Yearly gross salary 1000 x my IQ haha. Plus balanced portfolios though mainly in TFSA & RRSP.
I pay whatever TurboTax says I owe or not. Haven’t yet been audited. Software works.
185K Income, 175K of it from overseas.
73K Overseas tax.
5K Canadian tax.
Joys of being a deemed resident for tax purposes of two countries.
This is my 19th year of work overseas. I’ve never dodged Canadian taxes, ever. Been audited by CRA 3 times, been to tax court once, almost made it there twice but CRA wisely threw in the towel on another unwinnable case.
Its now really hard to see that money go out when it is squandered by an arrogant government (watched Parliament question period lately?) that seems to be hell-bent on turning a functioning country into a quasi-worker’s paradise. Having long worked in former Soviet-bloc countries, I know that doesn’t work out so well…
Had I been smart like some of my co-workers, gone non-resident and domiciled in Panama, I’d be retired by now.
I’m concerned about my kid’s future with the anchor chains of debt that T2 and Wynne are wrapping around his young neck.
$158K Gross Family Income.
$23K Net Income Taxes.
Household income about $300K and paid over $150K in imcome tax, adding gas, property and other municipality taxes, another $20K…..more then half of our income, I’m glad I subsidize the blog dog complainers (sarc off)
My income is below the poverty line and I’m not proud of it. I get 28,500, pay no taxes but 38% percent of it goes to pay tuition and university fees (I’m a graduate student). I have been in this financial situation for longer than I planed, and despite all my expenses, I have managed to stuff money into my TFSA (don’t live in a basement by the way). Hopefully my future will be better, thanks to this blog I have invested my savings and now I embrace calculated risk.
There are a lot of people struggling to make ends meet but the goverment policies won’t change their situation. People don’t want hand outs, just opportunities to thrive but unfortunately there are no many in this country.
This past summer I went to the General Governor residence and was told that it was the property of all Canadians (but I’m sure if I won’t be allowed to spend a couple of nights there). Staff showed visitors how oficial dinners were organized and I was impressed by the lavish spending. So, as it have been said here, the goverment has a spending problems and no amount of taxes will be enough to support its ‘promises’.
I have been following you for years now and i think, you are stupid.
Me desculpe por isso.
Obrigado por seu comentário.
1) I hope that you are right with your point #1. I was around when the “eat the rich” and “eat the rich doctors ’cause they take no risks” stuff was coming out in the steerage section of this blog. It was real, but who knows if it is just a vocal obnoxious minority or not. It is hard to know what will happen with the next election given the various spin the media takes on things. The Liberals are a pretty slick media machine. Our government in Ontario has been pretty openly hostile with us for a while. I never thought that the Ontario Liberals would get re-elected with their gas plant scandals, ORNG, eHealth, the list goes on. But they did. They are already ramping up their vote-buying schemes.
It is interesting. The people that I deal with on a day to day basis are generally quite grateful and honestly very rewarding to work with. Strange things happen to people when they are thinking about groups of people rather than the individuals that they know. I honestly cannot remember ever seeing my colleagues as demoralized as they are now after the last few years of rhetoric from our provincial and now federal governments. It alarms me because it is a group of people who are generally resilient, work hard, and care about what people think.
2) Medical school and practicing medicine is a privilege. Not just for the guaranteed job, but for the actual work that you get to do. It is an earned privilege, but one nonetheless. I feel bad for PhD Starbucks workers. They obviously took a risk investing in an education with limited job prospects and it didn’t work out well for them. I do understand the intrinsic benefits of getting a higher education both to the individual and society. However, there are some more directly employable degrees than others and people should consider that before committing to them. Getting a college diploma in an employable field after their University degree is a better fiscal decision for most people. It is what my dad in the 70s and my wife did in the 90s. It is nothing new. We all make our choices about what education to invest in – some invest for the intrinsic benefits and job prospects. Others just for the intrinsic benefits, I guess, or they didn’t plan ahead.
3) As I mentioned, I was happy to do the extra work and make hay while the sun was shining. However, it was available because it was undesirable work for the vast majority of my peers. Many literally thought I was crazy to do it actually. I stopped because of the shift in taxation past a proverbial line in the sand for me, my advancing age which affects my ability to work those hours, and also because there are now some younger people in need of the work who do have the constitution. Medicine is interesting in that you can work as much as you can in some fields, but in others you are limited by government caps on hospital resources. I feel bad for the surgeons who can’t find work and for the patients who are left waiting simply because the OR time has been capped and they don’t have one of the diseases the government has targeted dollars at. We have under-employed areas in medicine which is shocking given the demand.
4) I actually don’t think practice in the US is any better at present. They have similar issues. Just substitute government for insurance companies and voila – same frustrations. I have watched the pendulum swing back and forth. When I went to med school, about 1/3 of graduates were going to the US because it was clearly better there at that time (1990s). We made up a lot of ground and I think Canada has been a far better place to practice from about 2005 to 2012. We have been swinging back the other direction since then. I am just keeping my options open because Trudeau seems to be pushing the pendulum pretty hard. I think the threat of losing established physicians like me is quite small. I have roots here. I am more likely to cut back to just work enough to enjoy what I do than to leave. I think most threatening to leave are making empty threats. My wife and I happen to like the environmental climate in the US, but it would still take a lot to make us uproot. I worry more about those starting out who have fewer ties. If people worry about them leaving, hostility is definitely not the answer.
#132 Dan. t on 11.24.17 at 9:38 pm.
Good to see all blog dogs are are taking home 180k, but… “ya know, I only work like, 2 days a week”…
I thought the average family income, based on stats can was around 75k in BC, 85+- in GTA and 90+ in Alberta. Or have things changed?
I guess things have changed in Canada. You are now a loser if you don’t make over 100k? Agradável. But then again, with 900k house prices, I guess that is the only way.
I was wondering, are a homeowner?
$396,996 gross (wife and I)
$90,097 has tax paid.
But this was an anomalously low tax year due to a much larger than typical rrsp contribution.
I am thinking on similar lines as you #159 Steve White…We have these political parties fighting back and forth, putting on a show for “us Canadians.” Time to bring in a new system and less time putting on a show which is getting boring.
Google “Could Technology Remove the Politicians From Politics?” and “Reform Political System.”
A start in the right direction and the seed has been planted.
We have laws against the things that are wrong for us but we don’t have laws against debt/credit, a crime against themselves and now the country.
#175 Lost. but not leased on 11.25.17 at 12:53 am.
A while back, I had an interesting experience.
Via an ailment, I scheduled an appointment with our family MD.
Long Story short…my own MD had to take time off for a medical condition.
I then had (2) different “locum” replacements.
My “diagnosis”…ALL 3 MD’s gave me different diagnosis’. (.)
Family of 1 retired boomer. 2017 disclosure for your pleasure. I wish Trump, Trudeau and Morneau had the courage to do the same.
$26,500 indexed pension incomes (no OAS yet)
$43,000 RIF/RSP withdrawals (budgeted to age 90)
$ 5,500 Dividends from nonreg investment a/c.
$ 4,700 Capital gains from nonreg a/c (varies)
$79,700 Gross Income.
$14,400 Fed & Prov income tax (no EI or CPP)
$ 3,800 Property tax (rising @ 5% per year)
$ 2,300 GST (guesstimate)
$ 200 Carbon tax on natural gas bill (rising fast)
$20,700 Direct taxes paid.
I have to just make sure I don’t die with large RIF and RSP balances.
#177 Pretentious Hipster Bucycles on 11.25.17 at 1:00 am.
Between my wife and I we pulled in approx $175k.
Our total tax bill at year end was $10k, not including tax deducted from my wifes T4 income of $50k.
This also excludes what the company I have owbership in paid in corp taxes.
Income: acquired by years of education, toil, difficult decisions and hard work.
Taxes: stolen from me on a whim by people who declare I’m a criminal while idolizing the tales of Robin Hood.
Marginal rate: who cares, when can we vote these socialists out?
Line 150 = $102,675.00.
Line 260 = $91,946.00.
Line 435 = $21,260.99.
Average rate on net income = 23.12%
Sorry, brain fart.
The trouble with socialism is eventually you run out of other peoples money.
#182 Lost. but not leased on 11.25.17 at 1:18 am.
FYI: Legal Notice of “Bragger’s Tax”
Moroneau and Turdeau will soon table a “Bragger’s Tax” for people that claim annual income over $100,000 on blog sites.
Blog Host will be obliged to turn over required info to CRA.
#149 NoName on 11.24.17 at 10:50 pm.
That is absolutely fascinating! Obrigado! I found the following Freakonomics podcast about it:
I find it especially interesting how the researchers conclude that summer camp settings encourage delinquent behaviour, and the more you go the stronger the effect!
The other two theories the researchers proposed to explain the negative effect were interesting, as well:
“Another theory has a lot of traction to it: that the kids in the program developed a dependence, or a sense of need, so that when the program ended they felt like something they needed wasn’t there or something they valued wasn’t there. What happened was people got a mentor and then at a certain point, they lost the mentor.”
And, “…a third hypothesis theory, and this was really my mom’s favorite theory, though she died before she could test it. But her suspicion was that part of what was happening was fairly privileged mentors, who had values and expectations that well suited their opportunities transferred — not really intentionally, but by osmosis or by modeling or by conversation — those values and expectations to the kids.
“Part of why my mom thinks this is an important hypothesis is she thinks psychology and sociology in general pays too little attention to what explains how people make the decisions they do, why they take certain considerations as reasons and not others. She thinks that process of teaching people what to consider, a reason or a value or a goal, is deeply important to explaining behavior.”
Now there’s a hot-potato idea, that values and expectations suited to one class background may not be well adapted to another…
#184 Dom in Switzerland on 11.25.17 at 1:47 am.
285K CHF and 36K in taxes plus 900 a month for health care for the family of 4.
#185 Paid too much on 11.25.17 at 1:49 am.
Garth – 2016 results.
Gross income (just me): $424k.
Taxes Paid: $129k after refund.
2) Always too much.
Total income $98k.
Love the blog GT.
#188 SHiTTy of vAn-gOObEr on 11.25.17 at 2:44 am.
Mr & Mrs Delusional.
Total Household income.
Self employed, but employ many.
Working my a$$ off, grey hairs arriving.
There’s no shame in being rich.
There is a shame in a country with growing wealth disparity. Obviously a feudal style disparity where one ruler owns 99% of the wealth isn’t great for standard of living and communist style where everyone gets the same regardless of effort doesn’t work either. So what’s the goal? How does something around the 50/60s era sound when the middle-class was the largest it’s ever been?
That’s 0.62% of the population. The average tax they paid (before the latest increase) was $160,000. Together this tiny group of people (average age, 52) earn about 10% of all the income but pay 22% of all income taxes. Seems like a good deal for everyone else, but the prime minister says it’s not enough.
It’s telling that the problem you see is that the wealthy are paying 22% of taxes against 10% of income and NOT that 0.62% of people are making 10% of all the income. Which one of those is more disproportionate?
Do the affluent pay their fair share of the tax load?
Compared to historical precedents? No. I’m sorry, it’s hard to hear and paying taxes sucks. But no income inequality is getting worse and trickle-down ‘job creator’ voodoo has proven not to work since Reagan. There is research showing that redistribution is the best method. Look at Nordic countries. Yes their taxes are high (similar to Canada in the 60’s) but they beat us on almost every single quality of life indicator. If that’s not important to you then be honest and simply say “I’ve got mine, I don’t care if our average quality of life is below what it could be, I want to keep more of mine”.
Just admit that you don’t care about low-income quality of life and don’t lie about some libertarian fantasy where cutting your taxes will cure it. That’s intellectual honesty you can reason with. It’s a perfectly fair argument to say you think that today’s level of wealth equity is ideal. I think this isn’t as fair as it could be and I’m willing to pay a bit more.
I’d rather it not be spent on boutique programs with high administration but direct programs like basic income etc.
What did your household earn last year, and what did you surrender in tax?
Earned $210K, handed over about $58K.
Gross 2016 family income (2 kids): 172,000.
Total tax (after all deductions etc): 22,000.
Looking at it, that sounds like we have lots, but for some reason I still don’t feel like we have anything left. We don’t buy stuff, we rent instead of own and still have nothing left to save. Time to do some deep reflection…
I think if I said how much I made this year, we’d have people here laugh or cry, and the CRA would establish a special team to chase me down. RI MUITO.
That said, hold your horses, the year isn’t yet and I haven’t quite figured my tally for the tax man. Needless to say I’ll be spending the christmas holidays reading an entire shelf of books on tax avoidance, catching up on Canadian tax treaties with certain Islands, trust structures, updating myself on OECD roadmaps and narrowing down which offshores have near 0% corporate tax… or as the professionals call it “Asset Protection Planning”.
I hesitate paying $500/hr per person to hire the top team at KPMG to figure out the best strategy for me, since they have messed it up several times in the past couple of years for some of their top clients. If anybody has some top notch up to date resources on Canadian tax avoidance, I’ll pay that person a sizable sum in Moneros [anonymous crypto currency, for those wondering]. Be sure to post your receive address along with your post. The amount paid will depend on the quality of the material posted, and whether I already knew that info or not. Dont worry, I’m not a cheap ass, but dont bother posting content that you simply find with a few google searches, I can do that myself.
BTW, since my last post here earlier this week, a large chunk of my crypto portfolio is up 20% (again). Não acredita em mim? Look up the price chart of Ethereum for the week it just went from $360 to $460 USD.
I honestly shake my head at all you high intellect people in this blog, making an amazing $200K+/year as high networth professionals, successful business people and no doubt executives of large corporations. You spend so much time trying to figure out how to operate a diversified portfolio to beat the indexes and you all celebrate if you make 10-15% per year on your taxable investments. I mean seriously, I’ve met teenagers now day trading crypto currencies making 3000%+ returns per year. & # 8230; year after year!
How many more years of 1000%+ returns per year will it take for people to finally start researching and understanding the implications of deflationary currencies without central authorities that can be completely anonymized and traded on decentralized exchanges that can’t be shut down? I will say it again. Crypto Currencies are the biggest transfer of wealth we will see in our generation.
Look, I’m not going to try to pay 0% taxes. I value social services like police, firemen, mostly free healthcare services, cities that are quite safe to live in, with decent infrastructure and overall a culture of people who are for the vast majority quite nice. But, I will also pay what I feel is my fair share, which excludes things like the previous government’s funding of wars, F-35s that cost billions, additional billions in tax subsidies that have propped up housing making it less affordable in the long term, etc. I’m going to weight the good against the bad, then come up with what I feel is a fair amount to pay.
BTW, if the CRA is reading this, don’t even bother.. I’m behind 3 proxies across 2 continents from a VPN paid with anonymous crypto currency, using a ToR browser through the I2P nework through a free wifi from a local cafe without cameras installed. I will admit, latency is a bitch, but you’d have better odds finding Edward Snowden.
I think if I said how much I made this year, we’d have people here laugh or cry, and the CRA would establish a special team to chase me down. RI MUITO.
That said, hold your horses, the year isn’t yet and I haven’t quite figured my tally for the tax man. Needless to say I’ll be spending the christmas holidays reading an entire shelf of books on tax avoidance, catching up on Canadian tax treaties with certain Islands, trust structures, updating myself on OECD roadmaps and narrowing down which offshores have near 0% corporate tax… or as the professionals call it “Asset Protection Planning”.
I hesitate paying $500/hr per person to hire the top team at KPMG to figure out the best strategy for me, since they have messed it up several times in the past couple of years for some of their top clients. If anybody has some top notch up to date resources on Canadian tax avoidance, I’ll pay that person a sizable sum in Moneros [anonymous crypto currency, for those wondering]. Be sure to post your receive address along with your post. The amount paid will depend on the quality of the material posted, and whether I already knew that info or not. Dont worry, I’m not a cheap ass, but dont bother posting content that you simply find with a few google searches, I can do that myself.
BTW, since my last post here earlier this week, a large chunk of my crypto portfolio is up 20% (again). Não acredita em mim? Look up the price chart of Ethereum for the week it just went from $360 to $460 USD.
I honestly shake my head at all you high intellect people in this blog, making an amazing $200K+/year as high networth professionals, successful business people and no doubt executives of large corporations. You spend so much time trying to figure out how to operate a diversified portfolio to beat the indexes and you all celebrate if you make 10-15% per year on your taxable investments. I mean seriously, I’ve met teenagers now day trading crypto currencies making 3000%+ returns per year. & # 8230; year after year!
How many more years of 1000%+ returns per year will it take for people to finally start researching and understanding the implications of deflationary currencies without central authorities that can be completely anonymized and traded on decentralized exchanges that can’t be shut down? I will say it again. Crypto Currencies are the biggest transfer of wealth we will see in our generation.
Look, I’m not going to try to pay 0% taxes. I value social services like police, firemen, mostly free healthcare services, cities that are quite safe to live in, with decent infrastructure and overall a culture of people who are for the vast majority quite nice. But, I will also pay what I feel is my fair share, which excludes things like the previous government’s funding of wars, F-35s that cost billions, additional billions in tax subsidies that have propped up housing making it less affordable in the long term, etc. I’m going to weight the good against the bad, then come up with what I feel is a fair amount to pay.
BTW, if the CRA is reading this, don’t even bother.. I’m behind 3 proxies across 2 continents from a VPN paid with anonymous crypto currency, using a ToR browser through the I2P nework through a free wifi from a local cafe without cameras installed. I will admit, latency is a bitch, but you’d have better odds finding Edward Snowden.
#194 Randy Randerson on 11.25.17 at 3:43 am.
#140 Still here on 11.24.17 at 10:06 pm.
See what I did there? And Ontario increased its income tax rate yet had a shortfall in income tax revenue to projections despite a growing economy and employment levels….
…and Trudeau is still trying to figure out what happened.
Total Income $152k.
Tax paid $44K (NL)
So, 30% in personal income taxes alone.
Lived for brief periods both below the poverty line and as a 1% – but I have no incentive to spend half of my life at work to support a government.
My tax avoidance strategy is to stop working at a highly-taxed full-time job, get my time back, and live a simpler healthier life.
#142 Loonie Doctor on 11.24.17 at 10:16 pm.
…My wife and I have already discussed it and if this Trudeau crap continues after the next election it is a signal that the public likes the current direction and wants more.
You can bet on more down the road. Canadians got stupid, Trudeau’s eat the rich platform earned him a majority.
You’re just as screwed if Jagmeet gets in, maybe even more so.
#198 Leichendiener on 11.25.17 at 6:45 am.
Fair question to know your audience.
From T4: $142,600 employment income. $39,000 income tax.
I am employed by a private company.
#142 Loonie doctor.
The reason doctors make a bundle is because of the life, social and mental sacrifices.
Let’s examine 2 different situations:
The good doctors earning $700k.
That income probably didn’t start until he was 45 maybe 50. He didn’t finish school until he was in his 30s. Incurred huge student debts, probably didn’t have kids until his mid 30s. How would anyone expect him to be able to retire at 65 if he didn’t make big money?
Now let’s look at a 20 year old kid who gets a job with TTC. If he’s smart he could be retired by 50 with a pension for life and a couple of million invested.
Income taxes for 2016 for the entire household.
Taxable Income: $187,925.
Total payable tax: $46,722.88.
So almost 25% from my income tax.
#202 Sadly we don’t know on 11.25.17 at 8:00 am.
Unable to know if considering taxes of all kinds. I’ll accept your following statement which really hurt when I read it:
“To finance this, the average family pays about 43% of its income in taxes of all kinds”
When my sole proprietorship was audited by CRA about thirty years ago, I quickly established that I adhered to the amazon model of growth, with low earnings. It appeared that I had understated my expenses and overstated my earnings so the correspondence and phone calls ceased as quickly as they had started and I was put on a do not call list. I was surprised that they never sent some food and warm clothing, maybe they are indeed heartless. I packed it in shortly thereafter to make things for me, not potentially money for me and CRA.
On my $100/month CPP I pay no tax. My wife shifts pension to me from her TPP and CPP and with her OAS we net $4000/mo, of which $2300 is the TPP. When she substitute teaches, she loses 26% to additional tax at that level of income, is my understanding.
The tax I hate is the forgoing of interest on her savings in order for Corps to be able to buy back shares at low interest rates to create fake stock value increases, shored up with the FED Reserve buying every daily dip greater than 1%.
I don’t like the idea of owning stock, with pay level disparity within Corps what it is, along with crap job security and benefits for the workers and golden parachutes for the corporate suite. No one deserves a thousand times more per day than me when I am productive.
So I am stuck with low to no interest, and as much sympathy for my plight as Garth gets for his plight from the masses.
Earnings astronomical…..flat 15%…..no testical squeezing social deductions….
No sales tax on anything. Sun shines every day. Cost of living is ridiculously low. No way I’d ever live on Canada. Our stock markets up nearly thirty percent…..and the Canadian dollar is falling. Why are you there? If you have a four year degree you’re guaranteed wealth here.
Household income $88,656 Tax $9,696 – 10.9%
“Not only is Bermuda’s beneficial ownership register not public, it is also not up-to-date. As the government of Bermuda acknowledges “the current requirement is for such companies to file beneficial ownership information at the time of formation, with no obligation to provide an update”.[1] While proposals have been developed to require companies to keep up-to-date records, for examples when the ownership of the company changes, these are not yet in force.[2]
Rather than misleading the British public about its efforts to tackle tax haven secrecy, Bermuda should stop lobbying the UK government to oppose transparency and recognise that this transparency is vital if it is to clean up its tarnished reputation.
David Burt, the Premier of Bermuda, misled listeners on BBC Radio 4’s Today programme about Bermuda’s efforts to tackle the corporate secrecy that enables tax avoidance, evasion, corruption and money laundering this morning.
In response to the Paradise Papers revelations, he was asked “Your register of ownership is not public, it is secret,” Mr Burt replied “Our register of ownership is public and not secret. The fact is that Bermuda has known who the beneficial owners of our companies have been for over 70 years.”
Isso não é verdade. Bermuda does not have a public register of beneficial ownership.
In fact the only people in the UK that can access Bermuda’s beneficial ownership registry is the UK’s National Crime Agency, on request – to which Bermudan authorities usually have 24 hours to respond to.
In May 2017, researchers and reporters discovered that the FCC’s public comment process was being corrupted by the submission of enormous numbers of fake comments concerning the possible repeal of net neutrality rules. In doing so, the perpetrator or perpetrators attacked what is supposed to be an open public process by attempting to drown out and negate the views of the real people, businesses, and others who honestly commented on this important issue. Worse, while some of these fake comments used made up.
names and addresses, many misused the real names and addresses of actual people as part of the effort to undermine the integrity of the comment process. That’s akin to identity theft, and it happened on a massive scale….
The numbers don’t matter.
We’re taxed way too much, period. There is no “fair share”, because there nothing fair about it in the first place.
The government, and the mental midgets that run it simply squander way too much money on completely useless programs and pseudo-charitable politically driven handouts.
There is no end to the levels of taxation we will face as long as we live in the socialist welfare state. The government has zero restraint when it comes to giving away YOUR money. We will NEVER see tax reform of any sort. There is only one taxation direction: up, uP, UP!
The government needs to STOP SPENDING. AGORA!
Just cut it out. CUT-IT-OUT! Know what I mean?
In the meantime, when it comes to your own tax payments: avoid, avoid, avoid. Then avoid some more.
Taxation is theft.
Se cuida.
We are retired middle class workers who have been paying more and additional income taxes for the year during spring tax time in addition to monthly tax deductions. We pay at least 43 percent or more. Don’t mind it as long as other folks are paying their honest, correct share also. I see many who don’t. For example, many Albertans have cottages in BC. They do not rent them but use them purely for family recreation. They write off the mortgages or wrap the mortgage in their business loan to write it off. This is grossly unfair as many other folks abide by the CRA regulations when owning recreational properties. Some of these folks who write off their recreational properties use a numbered company as the owner for tax purposes. I agree when the Liberals are trying to amend these practices. Why should these guys from Alberta get the tax breaks and others don’t?
#209 After Communism on 11.25.17 at 9:40 am.
(As a brief aside, the quickest counter-argument I know to the “invisible hand” – the idea that self-interested behaviour *must* result in a pareto-optimal outcome – is the prisoner’s dilemma. Rational self-interest can easily result in sub-optimal outcomes for everyone, which is probably why humans evolved to be pro-social rather than rational.)
Canada’s Christian culture had limited government and liberty because the invisible hand (God) works with decentralised family decision making and extended family social cohesion, not a central powerful single payer making all the decisions and taking half the incomes, so that even a simple knee operation is considered impossible.
Thus your pareto-optimal concern is true only in an anti-Christian, secularist, multicultural milieu. Canada is obviously being managed and justified, in a communist centralised way of thinking to control the competing groups, which are Nash, and worse, other groups, which are anti-pareto (meaning smashing everything to hurt their not-in-group).
For example Trudeau is making it look like $40 billion of housing is for everyone, although now brazen enough to openly admit it is 25% for one in-group: women pitted against another in-group: men, and I think for other in-groups, too.
Mobility (if you’re up for it) can be exceptionally valuable. We saved substantially with 2 professional salaries in a zero tax country and a bare bones lifestyle for 7-8 years. Immigrated to Canada when our kids got to school age. We expect to save very little additional money for the next several years, because with the high taxes it makes sense for my wife to spend time with the kids in their formative years rather than work. Canada is an exceptional country to raise children, and we are grateful for the opportunity. However at some point kids will go to the US for university and onward in life. Then it will no longer make sense to pay these high taxes. I think my wife and I might again move to a low tax country at that point.
#192 GeniusMoney on 11.25.17 at 3:25 am.
Meh I’ve stayed out of the cryptocurrency debate because it looks like a fad to me, like pogs or baseball cards.
There is some irony in your post:
“You spend so much time trying to figure out how to operate a diversified portfolio to beat the indexes and you all celebrate if you make 10-15% per year on your taxable investments. I mean seriously, I’ve met teenagers now day trading crypto currencies making 3000%+ returns per year. … year after year!”
-There it is. The high earning professionals we have on the blog are in that position because most moves they make are calculated using risk vs reward.
1) When someone has spent years building a business or profession, the last thing they want is to waste it all on something they don’t understand.
2) Anyone over the age of 20 realizes that if something sounds too good to be true, it usually is. 300% profit in a few months is exactly that.
3) It’s because teenagers living at home are trading crypto that these professionals are staying away. When the mix of traders is the inexperienced, sketchy gangsters, tax cheats, doomers, and massive speculators. Experience says to stay away.
“How many more years of 1000%+ returns per year will it take for people to finally start researching and understanding”
-Nothing goes up forever and no one cares about Estats.
“BTW, if the CRA is reading this, don’t even bother.”
#212 Brett in Calgary on 11.25.17 at 9:58 am.
Two income earners:
It’s a balancing act between professional opportunity, tax levels, cost of living, quality of life and social values. No one country has them all (lived in 3 regions so I have first hand experience). Different things rise in their importance at different life stages. Flexibility and an open mind allows us to make the best of each place depending on circumstances. Multiple passports are a valuable asset. Except a US passport, which taxes you on global income even after you leave the country. Thankfully the Canadian passport doesn’t have that issue (for now).
I maintain, when the government proves it is being fiscally responsible with my tax money, I will be responsible in my reporting.
80000 gross + 9500 CCB (kids) – 10000 CPP + Taxes (self employed me and the wife working in our two year old business). also 7000 in property taxes (house + commercial building).
#216 For those about to flop. on 11.25.17 at 10:22 am.
This howmuch article is from earlier this year, and although about America the poll seems to be attracting a different crowd and so I will refrain from embarrassing myself with my Pink Posts and just contribute this.
Have a good weekend…
“Believe It or Not – the Richest Americans DO Pay Most of the Federal Income Tax.
Thank God for the 1%. That much-maligned minority, the richest percent of Americans, pay 39.5% of all Federal Income Tax. That is one of the most eye-catching figures in a study released by the Tax Foundation earlier this month. To put that percentage in absolute figures: the richest percent of American taxpayers pay in $542.64 billion of a total take of Federal Income Tax of $1.37 trillion.
As this data visualization clearly shows, the top 1% pay much more than taxpayers of any other income level.
It is almost double as much as the next bracket of top incomes: those earning the 2% to 5% of the highest wages in America pay 20.5% of all Federal Income Tax. Or in absolute terms: $281.51 billion.
It is also almost four times as much as those whose incomes range from the top 6% to 10%. They pay 10.9% of Federal Income Tax, or $149.97 billion.
Those who earn between the top 10% to 25% of wages in America are a much larger group; yet their collective input into the Federal Income Tax is only half as much again as the previous band: 15.9% (i. e. $281.55 billion).
Those with an income anywhere between the top 25% and 50% only pay 10.5% of all Federal Income Tax, no more than $143.95 billion.
The entire bottom half of wage earners pays only 2.8% of its income in taxes into the federal coffers. In actual money terms: $37.74 billion. That is more than 14 times less than the top 1%, even though this group is 50 times as numerous.
These figures show the level of contribution to total income tax revenues by the various income levels. The Tax Foundation also provided figures for what that means for individual taxpayers in each group.
For the richest 1%, the effective average tax rate is 27.2%, meaning that well over a quarter of their income goes into federal coffers.
For the next group (up to 5%), the fiscal pressure is just below a quarter: 23.6%.
Taxpayers with incomes in the top 10% part with just over one-fifth (21.3%) of their earnings.
Those in the top 25% bracket contribute 17.8% of their annual income.
Even those up to the 50th percentile on average still give 15.5% of their annual income to Uncle Sam.
Because about 45% of American households make too little to pay any Federal Income Tax, the average percentage for the bottom half of incomes is dramatically lower – the average Federal Income tax level for this group is just 3.5%.
Nobody likes paying taxes, and all taxpayers agree that everyone who contributes to the national purse should have some say in how the government raises and spends its money. But in this debate, whose voice should be louder: that of the majority at the bottom of the income scale (who contribute the least) or of the minority of biggest contributors (who fork out the most)? Simply put, that question is the foundation of all politics in a capitalist democracy like ours.”
#217 crowdedelevatorfartz on 11.25.17 at 10:28 am.
“Can’t afford Canada. Left.
Gross Income (2016) including housing allowance: $264,000.
Net Income: $264,000.
But is it true that the sand gets…….everywhere?
#218 crowdedelevatorfartz on 11.25.17 at 10:35 am.
@#151 Leaving the country.
“With the attack on small businesses and increase in tax rates we are leaving Canada in 2018 and moving to Singapore. We’ll pay no more than 20% and get all the benefits that we do in Canada.”
With the exception of Wrigley’s Spearmint Gum….
#219 crowdedelevatorfartz on 11.25.17 at 10:45 am.
““We are going to CUT the size of Govt by 15%” – will win by a landslide…..
-Along with a corresponding cut in services too right?”
The cut in “services” is aready there due to the sloth , inefficiency and waste.
I’m particularly enjoying the appropriately named civil service “Pheonix” payroll system that is imploding.
How many beaurocrats sat in how many 1000’s of meetings pushing emails or paper back and forth discussing the new and improved system that is so bad it should be immediately scrapped?
Cut 50% of “civil” servants and maybe , just maybe the other 50% might suddenly realize how they had good jobs with great benefits and pensions that were worth keeping…..but I doubt it.
Tax increases to keep the debt bandwagon rolling right towards the cliff……
Approximately $17K income tax on $90K of taxable income.
#221 SquareNinja on 11.25.17 at 10:51 am.
Canada is a socialist country, with a tax system closer to that in Scandinavian countries than to the USA. If you’re rich, want to keep more of your wealth and enjoy the benefits of vast income disparity, it’s easy enough for you… Paradise Papers, anyone?
Personally, I’d rather give up more of my wealth and enjoy living in a more equal society. After all, my success and the success of others is attributable in a major way to the contribution of society in general and also to luck.
#222 crowdedelevatorfartz on 11.25.17 at 10:54 am.
“I have been following you for years now and i think, you are stupid….”
Call me Ishmael …..but could you be a tad more specific on whom you think is stupid?
Or is breathing and typing asking too much?
Most of the posters here pay more in taxes than I earn in a year, most are multiples of that value….
36 yo making 30k…
like Camus said.
“either commit suicide, or get a cup of coffee”
I dont think I should read these polls, they put me in a low place.
202 Asian ExPat on 11.25.17 at 8:33 am.
One word: stability. Let’s hope that people who have dual citizenship are denied re entry during the next third world coup when they come running.
Employment income $28k (about the average)
Dividends/Investment income $19k.
Realized Cap gains $69K.
Cap gain distributions $1,500.
RRSP Contribution $16k.
Total Taxes Payable incl. $2,400 CPP: $12k.
Politicians fiddle with the tax system, but that is overwhelmed by larger trends in the economy. The reality is the largest chunk of Canadian population has had little in the way of increases in real income for decades. People on the minimum wage and welfare have had their benefits frozen from time to time. In BC the minimum wage was frozen for a decade, so the wheel of inflation probably cut the wage by 30%.
So the higher income brackets are paying the brunt of the income taxes, because they are getting all of the pay increases. The unfairness is balanced however, by the governments enthusiastic use of fees, sales/property taxes and politicized ferry and hydro rates to skillfully extract revenue from those who earn less.
People are comfortable handing over 30 – 35% of their income to the government. Once you spend a working class paycheque, you are out at least 30% in income taxes, fees and GST. Studies have shown the more you tax higher income people, the more they will employ a tax lawyer to reduce their taxes down to that 30 – 35% level. For them the flat fees and other taxes are far less significant than for working Canadians.
Interesting to note there are some pretty high family incomes here that are paying about 20%, presumably by exercising RRSP and other legal deductions. I think for Canadians that are concerned about their income tax, there is a reasonable amount of legal relief, if you choose to exercise it. I wish the TFSA had been around thirty years ago.
For those who despise the cost of a civilized society, you can always leave. The moaning about government waste is a bit of a laugh for those of use who have worked for a large private sector corporation. You would be shocked at the lack of difference. You should read Kevin O’Learys first book when he sells his software company to Mattel and has to work there. The culture he describes sounds a lot like a government bureaucracy.
crowdedelevatorfartz on 11,
No. Cut the outrageous benefits like the Cctb or this stupid housing initiative. They are the real drain on revenue.
Also, cut the wasteful UN contributions. They are worthless.
Don’t think the call centre employee earning 30k/year is the problem, sorry.
So basically you come, use the educational system, health care system then leave?
One, this is a case for having Canadian passports taxed like crazy.
Two, my friends who went to the US to study came right back after they were done.
I’ll bite. Business owning 1%er here.
On the personal side:
#231 Randy Randerson on 11.25.17 at 11:59 am.
#202 Asian ExPat on 11.25.17 at 8:33 am.
Sounds like Hong Kong. Love the city, but can’t tolerate the working hours and the summer heat+humidity.
#232 Drill Baby Drill on 11.25.17 at 12:14 pm.
me; $230K, taxes $75K.
wife; $90K (DB pension), taxes $32K.
Total taxes (not including muni) $107K/year.
#233 Fake News Again on 11.25.17 at 12:15 pm.
#164 MF on 11.24.17 at 11:38 pm.
Why would anon people do that? – Garth.
Because they are anonymous. Nothing can be verified. You can get a reaction out of others, maintain your online persona/reputation, feel better about yourself and have fun doing it I guess? Basically troll.
That said, there are a lot of posters are truthful and that’s why I have been reading for years.
#160 Fake News Again on 11.24.17 at 11:24 pm.
“We are going to CUT the size of Govt by 15%” – will win by a landslide…..
-Along with a corresponding cut in services too right?
Thank you for clarifying the 100% night and day difference in Govt vs the Private Sector. Somehow through some “miracle from God” humans in the private sector can cut staff and still maintain 100% service…..
#182 Lost…but not leased on 11.25.17 at 1:18 am.
FYI: Legal Notice of “Bragger’s Tax”
Moroneau and Turdeau will soon table a “Bragger’s Tax” for people that claim annual income over $100,000 on blog sites.
Blog Host will be obliged to turn over required info to CRA.
Fake news again.
If you want to talk about federal employees, there was recently mass layoffs in a Toronto call center. All of the staff let go was on contract (aka everyone hired in the last 15 years).
Looks like you have been reading some fake news published in 1997.
And I work in the public sector. Lol @ you if you believe it’s 100% efficient and everyone works hard.
Genius “BTW, if the CRA is reading this, don’t even bother.. I’m behind 3 proxies across 2 continents from a VPN paid with anonymous crypto currency, using a ToR browser through the I2P nework through a free wifi from a local cafe without cameras installed. I will admit, latency is a bitch, but you’d have better odds finding Edward Snowden”…first, even I know where Snowden is and second, CRA doesn’t even remotely have the staff nor the talent to bother chasing any one individual so you might as well relax your efforts to hide. Somewhere in your ether you’ve typed in a valid email address somewhere, sometime.
You can spend hours trying to hide but if no one is actually looking then you’re spinning your wheels.
Most people posting here are absolutely typical Canadians. If someone they have never personally met or vetted asks them to divulge their gross and net incomes they gladly do it on the assurance of annonymity but type in a valid email address to do it.
Retired Couple: $97.7/$12.8k/Effective Rate 13.1%
#238 Vampire studies GMST on 11.25.17 at 12:40 pm.
192 genius money – thanks v much for the video links a few days back. Senate hearing very enlightening. Speaker did note however the presence of approx 500 working crypto currencies which will be very volatile for some time yet.
For that reason I am out (for now). Very interested in blockchain technology however.
#239 crowdedelevatorfartz on 11.25.17 at 12:45 pm.
“Thank you for clarifying the 100% night and day difference in Govt vs the Private Sector. Somehow through some “miracle from God” humans in the private sector can cut staff and still maintain 100% service…..
Yet Govt can not…….
Well since govt is usually grossly overstaffed and underworked.
Sim. They should be able to provide the same level of service with a loss of 15% of staff.
Dont believe me.
Go on unpaid leave and get a similar job in the private sector.
Half the staff doing twice the work for less money, no union protection, dreadful benefits, no pension and no job security.
Then, after a year ( if you last that long without quitting, stress leaving, or being fired) go back to your govt job and tell your co workers what the real world is like.
Earnings astronomical…..flat 15%…..no testical squeezing social deductions….
No sales tax on anything. Sun shines every day. Cost of living is ridiculously low. No way I’d ever live on Canada. Our stock markets up nearly thirty percent…..and the Canadian dollar is falling. Why are you there? If you have a four year degree you’re guaranteed wealth here.
hmm, well, for me, id NEVER live in Asia. Certainly not in China. Boggles my mind how people go to live there.
#241 crowdedelevatorfartz on 11.25.17 at 12:48 pm.
“Don’t think the call centre employee earning 30k/year is the problem, sorry…..”
Canadian Govt employees work in Call Centers for 30k per year?
2016 Total Household Income: $183K.
2016 Taxable Household Income: $151K.
2016 Total Household Income Tax Paid: $27K.
Unusual year, made substantial RRSP contributions and had a rather large medical expense deduction.
#243 Leo Trollstoy on 11.25.17 at 12:58 pm.
Won’t post. But household income more than what I’ve read here so far.
Did mark get a job after nortel yet?
If I can be so bold, to ask why Income Sprinking should not be allowed for every tax paying Canadian?
Would it not only end unemployment, and create more jobs?
That everybody could do it, it would put the basement dwelling people to work? Doing anything that could be rated as work.
Or as it works no work! If the parents want their kid to be a professional couch warmer, that is what they are being paid for.
I see no down side to this.
If the people have the money then let them spend it as they feel.
If every body does this then there will be unemployment.
The rest of the ” Tax ” breaks should be the same for everybody. Nobody gets a break.
This fairness could be a good thing.
Okay open the flood gates!!
Sorry I meant NO unemployment!!
Fair share means nothing.
Fair to whom, the clueless T2, the lying BM, Wynne or the Ontario Human Rights court?
It sure ain’t fair for me.
Anything above 30 % total tax, including income tax and HST is a theft as surely I am not getting even the equivalent of 10 % of my tax contributions back in services.
I even have to pay for my passport!
It is time to tax the elite. not the upper middle class.
#239 crowdedelevatorfartz on 11.25.17 at 12:48 pm.
What they do is advertise 50k/year but drop shifts and change hours based on call volume (which is always high).
30k might have been a little low, maybe it’s 35k after all is said and done.
#238 interesting on 11.25.17 at 12:46 pm.
Usually it’s someone who couldn’t cut it in Canada, or the US (or any western country). They will blame the country and whine and complain about “taxes” instead of themselves.
It’s similar to a MLB player who can’t cut it in the majors, but hits 50 homeruns in triple A.
#249 For those about to flop. on 11.25.17 at 1:55 pm.
Pink Pumpkin Update.
Well, I just spent an hour or so further analyzing that Thinkpol article that a couple of people asked me to check out.
As I wrote the other day I have presented some of the cases here and perhaps also of note I have cases in my folder that were not on that list.
As lengthy as it was, it appears to be incomplete.
Anyway the main point of this post, is that when I was cross checking the information I noticed that one of the houses had just sold and I will present it just in case a realtor wants to have their say as to what happened.
5161 Trafalgar st, Vancouver.
Purchased for 2.8 million on 21st October 2015.
Sold on November 14th 2017 for .
So they held the property/ investment for two years with an annualized ROI of 9.21% according to Thinkpol.
This number appears to be before expenses.
Highly unlikely they took a loss, but the Vancouver real estate market is a 12,000 piece puzzle and this is just one piece that needs to be put in its place.
This listing would have been placed in my Possible Pinkies Folder( chasing a 10/20% gain)without much to support it.
I’ve got some of the answers, but I will keep asking the questions on behalf of the people on the blog that are interested in transparency in the marketplace…
I find income taxes so offensive. The waste of forcing someone who makes $30k to file and pay $3k in income taxes after all their HST, excise, and property taxes. We need to take tax policy away from politicians and give it to economists. Elect politicians to distribute the wealth, not decide how to collect it in the most inefficient and biased matter possible. A bigger pie and we can all eat more.
Dual income earned around $165k with taxes of around $33k.
181,500 gross income (incl, spouse & investment)
35,000 income tax.
9,000 sales tax (estimate)
2,500 property tax.
TFSA & RRSP, typically max contributions.
Two middle-aged full-timers in Ontario with group RRSPs and lots of unused RRSP contribution room from lesser earning/mortgage paying years that now comes in handy:
Total income 361K (241+120)
Total income tax deducted 115K.
Combined Refund 45.5K.
#254 not a bragger on 11.25.17 at 2:25 pm.
yawn ..just a bragging scene ….
i won’t divulge my financial good fortune.
except to say i have chosen time over money .. so grateful.
so of course no one who is working 3 jobs at minimum pay will be here on this page .. sigh.
USER Pay for EVERYTHING!
Health, Education, Care Homes, etc.
Only benefit is a Universal Basic Income.
Lease out (Nationalize) Natural Resources, Telecom frequencies, etc.
Immigration at G7 average.
#108 crowdedelevator on 11.24.17 at 8:34 pm.
“An electrician and a millwright……”
Also check out an electrician and a plumber! :)
Won’t post. But household income more than what I’ve read here so far.
Of course it is, you’re the best.
you didn’t know that?
$62 k in taxes paid.
I make the majority and made a huge RSP contribution. I was saving the RSP room for when I sold some stock with large unrealized capital gains but decided enough was enough, and T2 is not getting my money.
Doing the same this year!
Garth is absolutely right here. I’m not rich by any stretch, didn’t have a dime till I was 30 – spent 25- 30 or the first 5 years of my career paying off undergrad and grad school.
So at almost 40 we rent, 2 kids and not balling (400K investments) but taxed like a baller. Whilst at the same time people who contribute very little and take, take all while sitting in 7 figure homes pay fractions of what we do.
this government is not positioning us to be competitive going forward.
50% of the comments and numbers.
Not a single mention of anyone paying capital gains from sale of investment or recreational real estate in 2016?
#260 Lost. but not leased on 11.25.17 at 2:58 pm.
#247 for those about to flop.
The Trafalgar house is interesting…
Not sure when built…but it appears to be of the style built for Hong Kong expatriates in late 1980’s early 1990’s.
These are approaching 30 years of age, hence what is the depreciation ?
May soon see these be demolished for the new generation of homes.
too many : too few is an understatement here “uber sharing for bikes”
China’s cycle hire startups allowed users to unlock GPS-enabled bikes with their smartphone, and drop them off anywhere without the need to park it at a dock.
0.62% of population earned 10% of all income. And ONLY paid 22% of all tax.
So 99.38% of the population has to share the remaining 90% of income.
You are free to earn more. & # 8212; Garth.
#263 in seclusion on 11.25.17 at 3:25 pm.
although I am a semi regular poster, I prefer to remain anonymous.
under those circumstances, I will confess that I own my own business. We took over the business from my parents.
I have got up early and went to work for 30 years.
I take advantage of all legal tax allowances available to my business.
Income splitting with my spouse.
Depreciating capital assets and rolling stock.
employing family members.
I also admit to sometimes using the business for personal purposes.
I drive a company vehicle to the coffee shop.
the business pays for insurance, gas, and repairs to that vehicle.
I write off more than the 10% of my home office expenses.
I am out of the country on holidays 4 weeks per year.
We have a boat. (against my better judgement)
I drive a goldwing (sorry Garth)
For the past 10 years my partner/ spouse and I have paid little or no income tax. We have no reportable income. She does not work outside of the business.
She stayed home and raised our family, often while I worked late.
I have worked at some of the dirtiest, stinkiest, cruel jobs that you can imagine.
We drive new vehicles, and live in a nice large home.
We cannot make use of an RSP, and have no health insurance. My CPP will be minimal because we have little income.
We have put all our kids through post secondary education, and still have a modest RESP to deal with.
All the money we make, gets spent into the economy as business expenses, or invested into unregistered investments and modest TFSAs.
The business has capital assets in excess of several million dollars, and zero debt.
We make use of corporate tax rules.
None of my kids are interested in taking over the business (yet).
We have rental properties.
Also, if a person has money, they have benefits to live more efficient lives. We have a COSTO membership. We can buy our needs in bulk. TP costs 1/2 what my low income tenant pays. the same for groceries, living expenses, insurance (because it is bundled), I can afford LED lights to lower the hydro bill.
Our cell phones are a business expense.
Since we are low income, my last kid in school gets a tuition grant. I get the HST benefit cheque, and the trillium benefit. My accountant fees are deducted.
Over the past 30 years, we have literally spent millions back into the economy in goods and services. We have sacrificed, scrimped and saved. We have built this business from a wasteland into a viable, profitable business property. I strongly reject accusations of being a tax cheat, or not paying our fair share.
We are now enjoying the fruit of our labour.
Travel, nicer restaurants, better gifts for the kids,
and driving a vehicle not held together with duct tape.
Lá você tem isso.
#246 MF on 11.25.17 at 1:38 pm.
#238 interesting on 11.25.17 at 12:46 pm.
Usually it’s someone who couldn’t cut it in Canada, or the US (or any western country). They will blame the country and whine and complain about “taxes” instead of themselves.
It’s similar to a MLB player who can’t cut it in the majors, but hits 50 homeruns in triple A.
Have you tried living in Asia? I was there teaching ESL for 2005/6, and it was amazing. Beautiful people, country and everything was sooo cheap.
Since we have no kids, we certainly plan to retire overseas. With the cost of living being 70% less it’s a no brainer.
Last trip we took to Asia we stayed at a place nicer than most “5 star” resorts in Mexico for $20 a night. They told us to book directly with them next time and it would go down to $12.
For the price of your average SFD in Van/TO you could have a mansion with STAFF for 30 years in some asian countries.
Or if you look at it another way, take whatever retirement plan you have and shave 10-15 years off it since you need so much less money over there. 10 Years of your life before you are old and frail is a HUGE win.
So no, it’s not just for “those who can’t hack it in the big league”…..
. #221 Cheese on 11.25.17 at 10:56 am.
. Most of the posters here pay more in taxes than I earn in a year, most.
. are multiples of that value….
. I dont think I should read these polls, they put me in a low place.
Yeah, I’m pretty surprised how around the $100k level seems ho-hum here. If I went back fully into the rat race I would probably have to sell my soul to make around 3/4 of that. I suspect a lot of commenters here are most likely not the average person’s peer–mature professionals, partners, presidents, doctors, people leveraging the work of a staff, inherited property etc.
Got the work visa. Good by Cunkstan.
Another savage road trip to the heart of Libralism.
365 day flip flop climate. I just have to keep my mouth shut.
Looks like your readers are all top 5% earners…No wonder they like conservatives and hate liberals lol.
I only look at my taxes once a year—and couldn’t be bothered looking up the figures—but suffice it to say that most of my income for 2016 was tax-free or - deferred (unrealized capital gains, tax credits on grossed-up eligible dividends in my non-registered account, RRSPs, TFSAs, CCA tax shield on rental property, etc.).
#269 Steven Rowlandson on 11.25.17 at 4:04 pm.
Have I paid my fair share this year? So far I earned almost $8500 helping to build stairs and paid tax buying gas to go to work and I live in my car and in church depending on the time of year. Do you really think I qualify to pay income tax let alone live in Canada?
#270 Steven Rowlandson on 11.25.17 at 4:25 pm.
“Usually it’s someone who couldn’t cut it in Canada, or the US (or any western country). They will blame the country and whine and complain about “taxes” instead of themselves.”
If one is making the effort to earn a living and isn’t making it due to actions done by others then blaming oneself is not justified. You assign credit or discredit where it is due and if you have a functional unbiased justice system you use it if you can and if you have the same kind of media you use it also while trying to avoid giving opportunities to criminals and financial vampires. The blame and punishment must be assigned to the offenders otherwise you have a paradise for criminals.
#271 The Management on 11.25.17 at 5:03 pm.
As the owners and operators of a small incorporated business, we paid ourselves $226800 as salary, put $20K each into RRSPs and paid just under $40K in tax. Plus another $5k in employers CPP because as business owners you get to pay both sides!
We work hard and also spent several years scraping by and eating into savings with no RRSP contributions to get the business to where it is today. But we also feel pretty fortunate and we donated around $8K via the business to charities that help with homelessness and mental health issues – kinda voluntary self-directed taxation! Hope to do a bit more this year.
I don’t mind paying reasonable taxes to live in a free first world country. I do mind my PM suggesting that we might be tax cheats just for working hard to start a business while himself and his multi-millionaire buddies pull every tax avoidance stunt in the book. Do as we say not as we do…?
I earned $97K as a civil servant. I’m not sure how much tax I paid, but I had few if any deductions.
I feel there is a problem with your statistics. You cited a percentage of people who earned enough to be in the top bracket and the amount of tax they paid. I believe there are many more people who earned this much, but found means to avoid having it recorded as income and thus were not included in the group you cited.
Julie K. on 11.25.17 at 2:49 pm.
50% of the comments and numbers.
Not a single mention of anyone paying capital gains from sale of investment or recreational real estate in 2016?
Try comment #250. It includes investment income.
A few of the retired guys comments also mention total as including investment income.
Maybe read more carefully, without conformation bias?
Tax Paid/Owed: $12,700.
Robbed by close to 25K in tx every year.
However I play dirty in TFSA speculating like a pro and pigging high 6 figures. Started 3 years ago with 40k.
I expect I will be raided in my TFSA acct at some point.
..sorry..I meant 35K in tx.
$132,500 in gross income, $35,876 in tax.
128000 Gross income I made 103000 the wife’s maternity leave made up the difference. Paid close to $30000 in federal/provincial income tax, this number also includes CPP and EI deductions.
Best way to reduce tax burden is have a large family, thats my plan!
@MF #226, pity you see it that way. My kids go to private school, so we’re not using the public school system. We moved them after a year in a “top rated” (8.5 on Fraser) public school, and won’t be going back. Even if hypothetically we send them to public schools, we contribute substantially more in taxes than we are getting in return. I’m not complaining, we knew Canada was high tax when we decided to immigrate.
Good for your friends if they’re happy coming back to Canada after studying in the US, but I can tell you not everyone feels that way. My wife and I went to graduate school in the US, and worked in NYC for several years. We left because we were earning well, but not saving as much with high taxes. We still consider NYC home (though we don’t have US passports), and may go back at some point if the right opportunity presents itself. For some this will seem like opportunism and lack of loyalty to any country. In the business world however, this is international experience and is highly valued.
My point is a simple numbers-driven one: during the accumulation phase in one’s career, taxes play havoc with savings. Let’s say you earn $200k as a couple, spend $100k in living expenses, pay $80k in taxes, then your savings are $20k. If you earn the same $200k in Dubai, spend the same $100k, but pay zero taxes, your savings are $100k. So you save FIVE TIMES as much each year in Dubai. Do this for a few years, and your financial security is dramatically different.
So basically you come, use the educational system, health care system then leave?
One, this is a case for having Canadian passports taxed like crazy.
Two, my friends who went to the US to study came right back after they were done.
So 270,000 people in Canada(about half the population of London, On)pay 1/4 of all the tax collected? That is crazy! If many of them pack up and leave the middle class will really be screwed(we’ll see howthey like paying 50,60 or 70% tax)
wealth survey response earnings…. 54 years old…. railroad wage 140,000/ wife stays home. Paid off bungalow. Only one ever bought and will probably die in( big reason for wealth) Investment portfolio over 250,000(thanx for the pot Justin) Retiring in six months. Defined benefit plan. Down to 60,000 per year. I can’t help it…..Canadians are stupid.
#283 Slightly Bent on 11.26.17 at 1:34 pm.
This year so far (as an employee)
$110 in income tax deducted, not counting CPP/UIC.
Very, VERY close to packing up and leaving this country. Not worth the effort to drive that salary anymore.
Paid $435K in taxes.
#285 Doug in London on 11.26.17 at 2:41 pm.
So yes, as we can see the benevolent government is going to spend more and more and more and more in the year to come. As mentioned, some of the increased costs will be paid for with greater taxation, but what if that still doesn’t cover it all? That means this benevolent government will have to borrow more money. Governments borrowing more money? Who ever heard of such a thing? If that happens, it means an increased demand for borrowed money. Just think of what that could do to interest rates. Oh, maybe I’m wrong, according to many “experts” who post here interest rates will NEVER go up.
#286 under the radar on 11.26.17 at 4:38 pm.
my handle says it all.
460K for the household, 2 incomes, 1 kid. 180k ish in taxes. Maxed RRSP, TSFAs, and RESP.
Going off memory, but that’s pretty close.
So far this year, my pay stub says: income $58K,
Tax deducted (Federal and QC): $15,800 (that’s right, no typos)
I usually have about 5K in rrsp contributions so am expecting a refund, but it basically makes me sick each time I look at my pay stub. Don’t complain so easily unless you live in QC k?
This will be my husband’s first year self-employed (first 3 months salaried) and is at about $65K gross, but he will at least have some good deductions and those first three months’ deductions. After seeing how his first tax return goes in April, we’ll be able to do some better tax planning for 2018.
We are DINKS, healthy, no drug-use or mental health issues, so we do not use available social infrastructure very much.
PS & # 8211; I love Costco too.
Income Tax: $ 20,347.51.
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Prior Period Adjustment [With Case Examples]
The two types of prior period adjustments are: (1) Correction of an error that was made in a previous year; and (2) Recognition of a tax loss carryforward benefit arising from a purchased subsidiary. How are prior period adjustments handled? Through this post, I am going to quickly demonstrate ways to handle several prior period adjustments with easy—to—follow examples . Apreciar!
When a single year is presented, prior period adjustments adjust the beginning balance of retained earnings .
Retained earnings—1/1 Unadjusted.
Prior period adjustments (net of tax)
Retained earnings—1/1 Adjusted.
Add : Net income.
Have I made the point? Not yet, you said . I am going to show you in clearer manner with some case examples, shortly. So, read on…
Errors may arise from mathematical mistakes, misapplication of accounting principles, or misuse of facts existing when the financial statements were prepared . Furthermore , a change in principle from one that is “ not GAAP ” to one that is “ GAAP ” is an “ error correction “. Disclosure should be made of the nature of the error and the effect of correction on profit.
When comparative statements are prepared, a retroactive adjustment for the error is made to prior years . The retroactive adjustment is disclosed by showing the effects of the adjustment on previous years’ earnings and component items of net income.
Case Example-1 [Misclassification]
In 2009 a company incorrectly charged furniture for promotion expense amounting to $30,000. The error was discovered in 2010. The correcting journal entry is:
[Débito]. Retained earnings = $30,000.
[Crédito]. Furniture = $30,000.
Case Example-2 [Expenses were not Accrued]
At the end of 2010 a company failed to accrue telephone expense that was paid at the beginning of 2011. The correcting entry on 12/31/2011 is:
[Débito]. Retained earnings = $16,000.
[Crédito]. Telephone expense = $16,000.
Case Example-3 [Revenue was not Deferred]
On 1/1/2010 an advance retainer fee of $50,000 was received covering a five-year period. In error, revenue was credited for the full amount. The error was discovered on 12/31/2012 before closing the books. The correcting entry is:
[Débito]. Retained earnings = $30,000.
[Crédito]. Revenue = $10,000.
[Crédito]. Deferred revenue = $20,000.
Case Example-4 [Repairs Expense Was Charged]
A company bought a machine on January 1, 2012, for $32,000 with a $2,000 salvage value and a five-year life. By mistake, repairs expense was charged. The error was uncovered on December 31, 2015, before closing the books. The correcting entry is:
[Débito]. Depreciation expense = $6,000.
[Débito]. Machine = $32,000.
[Crédito]. Accumulated depreciation = $24,000.
[Crédito]. Retained earnings = $14,000.
Accumulated depreciation of $24,000 is calculated below :
= $6,000 per year × 4years.
The credit to retained earnings reflects the difference between the erroneous repairs expense of $32,000 in 2012 versus showing depreciation expense of $18,000 for three years (2012–2014).
Case Example-5 [Salvage Value Was not Charged]
At the beginning of 2013 a company bought equipment for $300,000 with a salvage value of $20,000 and an expected life of 10 years. Straight-line depreciation is used. In error, salvage value was not deducted in computing depreciation. The correcting journal entries on 12/31/2015 follow.
Depreciation taken $300,000/10 × 2 years $60,000.
Depreciation correctly stated.
$280,000/10 × 2years $56,000.
[Débito]. Depreciation = $28,000.
[Crédito]. Accumulated depreciation = $28,000.
( Note : To recognize depreciation for current year )
[Débito]. Accumulated depreciation = $4,000.
[Crédito]. Retained earnings = $4,000.
( Note : To correct prior year depreciation misstatement )
Financial Statement Ratios [With Interpretations]
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More Advance with Cost of Capital Analysis.
Stockholder’s Equity Terms And Definitions Essential.
49 Comments.
Dec 30, 2009 at 1:24 pm.
At the end of 2010 a company failed to accrue telephone expense that was paid at the beginning of 2011. The correcting entry on 12/31/2011 is:
[Débito]. Retained earnings = $16,000.
[Crédito]. Telephone expense = $16,000.
What is the treatment if there is no retained earnings ? for eg. a sole trader concern.
Dec 30, 2009 at 2:16 pm.
Regardless if it is a sole trader or a corporation, as you concern about ‘fail to accrue an expense”, means you concern about a cut-off date, means you make “closing entries” to close the income statement, am I right? I doubt if one able to close the book if “retained earning” account isn’t exist.
Happy holiday and a healthy new year 2010.
Jan 29, 2010 at 2:44 pm.
If we overstated expense in 2008, and would like to correct it. What would be your advise? Journal entry in 2008 and 2009 were as such:
A/P Accrual 500,000.
-Retained Eernings 500,000.
Then what should we do about the A/P accrual?
Thanks a lot and look forward to hearing from you,
Apr 1, 2010 at 12:09 pm.
Dear Putra. You Should make the following entry in 2009.
Dr/ Accrued expenses 500,000.
Cr/ Retained Earnings 500,000.
Apr 1, 2010 at 12:12 pm.
Sorry the previous comment was to Michelle Chang.
Apr 30, 2010 at 6:09 pm.
What happens if you discover Unrecorded Revenue of 150K in first quarter of 2010? Do you restate 2009 financials? Make a prior period adjustment to RE? or can you make a current period adjustment in 1st Qtr?
May 26, 2010 at 6:23 pm.
What if we find a not reported depreciation expense from previous year? How should we include it on the income statement?
Jun 1, 2010 at 12:57 pm.
In the fiscal year 2008/2009 i recognize an income from commission by total. but in this year, i found that from the total, portion of it would not be an income. so how can i make prior period adjustment? for the amount wrongly recognized as income?
Jun 16, 2010 at 9:58 pm.
What if a wholly owned subsidiary failed to debit the expense and credit the ppd expense in the correct year and the consolidation for that year has already occured and the year has been closed leaving the amount still sitting in the ppd expense as an asset?
Aug 15, 2010 at 2:45 pm.
an invoice cost that was not included in the accrual for 2009 was charged to 2010 budget, what are the possible ways to adjust the budget in order to accomodate this unaccrued cost. if there is no more budget adjustment allowed, is it possible that the year end invoice cost will be charge to 2011 by no including it in the accrual.
Aug 30, 2010 at 4:02 pm.
My client’s previous accountants understated closing inventories in the immediate prior period thereby understating profits. However, the difference between the closing inventories in their FSs and the actual closing inventories for the period is less than the adjustment that needs to be made.
Where else should I debit the difference?
Sep 18, 2010 at 1:30 pm.
i want to the meaning of prior period income, prior period expense and prior period discloure and the treatment for the above.
Sep 20, 2010 at 3:40 pm.
Prior Period Income is the income earned in the previous year, Prior period expense is expense in the prior year and prior period disclosure requires that there should be disclosure for recognition of prior period income and expenditure. you have to state reasons while these income and expenditures were not reported during the previous period.
Oct 18, 2010 at 11:46 am.
If the company cost center (not profit center) and overstated expense in 2009, and would like to correct it in 2010. What would be your advise? Journal entry.
Oct 26, 2010 at 4:44 am.
What happen to the tax if there is a prior year adjustment to the current year? Should we also made adjustment to the tax computation for previous year or current year? If taking the example for Case Example-2 [Expenses were not Accrued].
I. e.: Let’s say last year 2009 the net profit before taxation is $50,000 and we were based on $50,000 to compute the tax 2009. But error discovered in 2010. The current year (2010) profit before tax suppose is $100,000 but after the prior year adjustment (the case 2), the profit increased to $116,000. So how do we make the adjustment on last and current year taxation?
Feb 7, 2011 at 2:52 am.
Eu tenho uma pergunta. How would you handle a refund on a litigation that was related to a prior year? Would it be a prior period adjustment? Litigation or lawsuit are usually disclosed in the notes to the financial statements. Litigation or lawsuits can take years to resolve.
Obrigado pela ajuda.
Mar 5, 2011 at 6:09 pm.
lawsuits are accrued in the financial statements only when you are likely to lose and the amounts of estimated loss recorded needs to be a reasonable amount. Otherwise they all stay in the notes of the financial statement.
Apr 6, 2011 at 2:07 pm.
In 2009 audit report we had recognised about 5million additional to the revenue and as trade receivables. In 2010, the projects were aborted. how do I treat this issue and whats the entry and is it allowed to make the correction in 2010.
Aug 5, 2011 at 2:41 am.
I need to make a prior year adjustment of 8 million to prior year period. The cost of sales for that 8 million is 5 million, may I know what is the entry that I should pass?
Aug 15, 2011 at 6:48 am.
I need to make a prior year adjustment for assets previously left out of the register and depreciation underdeclared because of using a wrong method. May I know what entries I should pass? How does this appear the statement of cash flows.
Oct 17, 2011 at 5:55 am.
hello guys. am stuck with an unrecorded sales in FY2010, payment was received this FY2011, just when we find out that it wasnt booked at all in the previous year. our FS were already audited. how am i going to get this trx in my current books?
your ideas are highly appreciated.
Nov 6, 2011 at 11:45 pm.
The accountant for K. Bailey and Associates reviewed the financial statements for the financial years 2008 and 2009. The Accounts Receivable was $780,000 and $500,000 for 2008 and 2009 respectively. The Accountant collected the $200,000 for cash sales in 2007. The amount was kept by the Accountants. The Accountant created fictitious addresses for those customers and treated the cash sales as credit sales. A clerk discovered what the Accountant did on Monday, January 26, 2009. The Directors had not yet approved the 2008 Financial Statements.
(i) Is this the correction of a prior period error? Explain.
(ii) How should it be corrected, retrospectively or prospectively? Explain your answer.
(iii) What are the determinants of selecting accounting policies?
Nov 7, 2011 at 1:16 am.
What are the determinants of selecting accounting policies?
Feb 23, 2012 at 9:07 am.
Question regarding Depreciation. I have received one request to capitalize an invoice with Date placed in service ” 11-Mar-2011″,Cost 24000/-, and life 3 years. Here I got a question like shall we calculate prior period (From Mar 11 to Dec 11) depreciation? but we have already been closed 2011 books and moved profit/loss to retained earnings. If we book prior year deprection in the current year we may get loss on P&L statement.
Pls let me know the accounting treament and Tax liability for prior and current year.
Jun 21, 2012 at 1:14 pm.
What if a company purchase fixed assets(vehicles) in 2009 costing 31,000 and 2010 costing 32,000 and did not recognize the purchase of these assets in their respective periods(the amount was omitted from the records). However, during 2011 the error was realized, what are the appropriate accounting entries to incorporate the assets in the records of the company?
Aug 12, 2012 at 10:12 am.
If some how company has overstated its revenue by raising duplicate invoices . Now we come to know that these will not get paid , so if we pass credit notes then this will treated as SUAD . How should go in this …
Benjie Farlin Sabanal.
Feb 9, 2013 at 9:38 am.
how do you account for trading securities and available-for-sale securities and how would you know if they should be part of comprehensive income or in other reserves?
Dec 19, 2014 at 7:53 am.
I am really stuck with prior year adjustment entry. Actually my problem for the entry is that if I credit shareholder and debit management salary(as expense) then how i am gonna show prior year adjustment in income statement. As i have to show this management salary as prior year adjustment(for three years).
Please help me, I do not know how to show this prior year adjustment in income statement( I could not find any map number for that).
I would appreciate response.
Mar 10, 2015 at 8:08 am.
is prior year adjustment affect this year cash flow statement.
Jun 1, 2015 at 5:19 am.
Good day SIR, what is the correct entry when let’s say, a fully depreciated fxed asset sold this yr for cash but no sale was recorded until next year? what isthe possible reason of committing error? tnx in advance.
Jul 13, 2015 at 11:21 am.
We forgot to accrued for income tax last year.
I made the following adjustment this year:
Dr Retain earning.
How should my Balance sheet and PL look like?
Oct 15, 2015 at 4:16 am.
We forgot to put audit adjustment in book in 2013, what shall I do in 2014?
Dr Exchange gain.
Cr Retained Earnings.
Nov 28, 2015 at 8:47 am.
Year 2014 August Sales done, but the payment received on Year 2015 May, pls advise how to enter this entries in Bookkeeping account and what are the statements need to be prepared.
Feb 17, 2016 at 2:27 pm.
Mar 1, 2016 at 5:31 am.
Amy, since you needed to adjust the forex gain but didn’t and you want to correct it – then your RE is overstated. To correct the overstatement your entry should be.
Dr & # 8211; Lucros acumulados.
Note: However, I wonder why your initial correcting entry is crediting purchases, when your purchases should be booked at the gross amount (not net of the gain)
Mar 1, 2016 at 5:41 am.
Thazin, income should be recognized in 2014. In 2014, you should have.
(also need corresponding entries on inventories)
This is reflected in the income statement.
Aug 5, 2016 at 7:38 am.
what would be the adjusting entry for overstatement of gain on sale? over/understatement of working capital?
Jan 16, 2017 at 7:14 am.
Hi.. Sir i have not paid my Audit fees for last three years, now i have to book expenditure in my books of account and how to claim Service tax input credit of 12.36% now in this F. Y.
Jan 21, 2017 at 4:06 am.
Oi! Would like to ask, how am I going to treat unrecorded sales of 2015 in the book of 2016. Will i treat it as PPA? Or, record it as 2016 sales?
Feb 5, 2017 at 9:12 am.
I HAVE A QUESTION,
the CFO in my company insisted to make a prior year adjustment to include an consultation expense for an engineer , that wasn’t approved or paid until next year is that goes with the standard??
Feb 13, 2017 at 9:27 pm.
If your company operates on an accrual basis for accounting (which most do), then the expense should be recognized as the service is provided, and if it is not paid until later, then a liability should be recognized for the services provided. Let’s say your consultant provided 100 hours at $100/hour in 2016. The 12/31/16 entry would be:
Debit: Consulting Expense $10,000.
Credit: Consulting Fee Due $10,000.
Once the bill is paid (say on 2/13/17), the following entry would be:
Debit: Consulting Fee Due $10,000.
Credit: Cash $10,000.
Let me know if I can be of further assistance,
Sep 9, 2017 at 10:59 am.
What will be the entry for say 2015 corporate tax ‘liability’ paid of say 10,000 in 2017 by cheque, which liability wasn’t created in 2015 because that portion of the liability was claimed to have been covered by withholding tax credits which in effect was not the case, per irs verification.
Mar 14, 2017 at 11:08 am.
How to record previous year expenses as part of cash advance for operation.
May 11, 2017 at 9:06 am.
What if a company would like to acquire a personal capital asset from an employee, a car for instance, the employee has already paid for the downpayment and 5 monthly installments for 2016. The arrangement to acquire the personal asset of the employee to be used as company car happened in January 2017, in which both parties agreed that the company would just be paying for the remaining monthly installments but would not be reimbursing the amount paid by the employee for 2016 installments and downpayment. The transfer of ownership would just take place after the outstanding balance of the car has been paid by the company. Let’s say the accountant recorded Dr. Advances fr. Employee ; Cr. Cash in Bank – BOA1234567, everytime that the company made its monthly installments. At the time that the outstanding balance was paid, the accountant recorded Dr. Property, Plant and Equipment; Cr. Advances fr. Employee to close the account for advances and an adjusting entry at year end, Dr. Retained Earnings; Cr. Accumulated Depreciation, in relation to the car. Did the accountant made the correct entries?
May 23, 2017 at 2:55 pm.
I wanted to know the tax implications on these transactions.
E. G. #5 (if IT was 40%):
Would we reduce RE by 40% tax on current 2015 machine book value, and credit that to Income Tax Payable?
What about previous years?
Aug 16, 2017 at 9:06 am.
Hi how to record previous year 10,000 capital contribution in the current fiscal year & also how to record previous year purchase of fixed asset 5,000 that was not recorded in its current year but to record it now. Also the unrecognized depreciation 20% (1000) from the previous year.
Sep 27, 2017 at 5:27 pm.
If the previos research and development expense were wrong recorded as intangible asset, how should we made the adjustment?
MD MEHERAB HOSEN.
Nov 23, 2017 at 9:03 am.
You can apply Prior Year adjustment, like :
Operational Expenses Dr.
Retained Earnings Cr.
Dec 25, 2017 at 1:19 pm.
Hello, I have a trouble in making adjustments for overpaid and underpaid expense in prior year. I come to realise these mistakes in this year, and wouder to know on how to make the adjustment for retained earnings in Year 2017.
a) RM10,000 underpaid for wages.
b) RM10,000 overpaid for accounting fee.
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The few vs the many.
This week the prime minister committed $50 million to survivors of residential schools in Newfoundland (before the province joined Confederation). He also promised $40 billion for a housing strategy focused on lower-income-earners and women. Every week since being elected, with few exceptions, Ottawa has announced a new spending program. Over four years the federal government is expected to write cheques for about $100 billion more than it takes in.
CPP benefits will be increased. Families now receive $6,400, tax-free, for each child under six and $5,400 a year, per kid, for 11 years after that. The age at which people get seniors’ pogey was rolled back to 65 by the current government. The cost is $69.4 billion. (By the way, OAS has an unfunded liability of about $560 billion – to be paid by future citizens.)
On and on. To finance this, the average family pays about 43% of its income in taxes of all kinds. Ottawa has created a new tax bracket for ‘the wealthy’, who now face a 53% tax take on income. The budget in March will implement measures to increase taxes on the self-employed. It may also increase the capital gains tax inclusion rate, or alter the dividend tax credit.
In a speech a few days ago the prime minister blamed rich people for not paying enough, and vowed to change that. Meanwhile his own finance minister had a horrible summer as he tried to defend the considerable personal wealth he’d been sheltering from the federal ethics commissioner.
The supporters of Justin Trudeau, which seem legion, support the efforts to close the gap on income disparity. Instead of growing the economy and raising wages overall, the emphasis has been on taxing more. But narrowly.
There are some 270,000 people in Canada who earn over $230,000 a year, in the 53% tax bracket. That’s 0.62% of the population. The average tax they paid (before the latest increase) was $160,000. Together this tiny group of people (average age, 52) earn about 10% of all the income but pay 22% of all income taxes. Seems like a good deal for everyone else, but the prime minister says it’s not enough.
As pointed out here in the past when irritating lefties show up, this is not a social justice blog. We like money, income, investible assets, capital gains and financial independence. We practice tax avoidance. We’re into real estate, exchange-traded funds, designer dog treats, crypto currencies and mocking the deplorables who think it’s okay to be seen near a Costco.
Here there’s no shame to be accomplished, wealthy or even (gasp) self-employed. And we wonder why, in an age when it’s apparently okay to do nothing and let your house make you a millionaire, it’s wrong to start a business, employ people, and earn a million? Why’s one pile of money tax-free but the other open for tax plunder?
A tenet of successful politics is us-vs-them. Works every time. It’s working now. So the spring 2018 budget will not be a happy event for the 1%ers. Ironically, Ottawa could Hoover all the wealthy people of most of their income, and the needle still wouldn’t move for the 99%. Most people will continue to borrow too much, buy houses they can’t afford, save and invest little, be financially illiterate and look to the government to bail them out. Meanwhile every dollar in over-spending and each future commitment made by the gang in Ottawa will indenture the middle class (and especially the young) to higher taxes later. If we had more rich people things might look better. Alas, we have a drought. And the few are in the crosshairs.
So let’s put our cards on the table. Open the kimono. Bare all.
Do the affluent pay their fair share of the tax load? Você?
Our GreaterFool survey asks for a simple question: What did your household earn last year, and what did you surrender in tax?
290 comments ↓
Bill Morneau….you go first.
#2 Alberta Ed on 11.24.17 at 5:29 pm.
Not enough, and too much, considering how much T2 is squandering Canada’s future.
Hey Garth – You go first!
You’re anonymous. I’m not so lucky. & # 8211; Garth.
We brought in 111,380.74 in 2016, paid 18,268.42 in tax.
#6 crowdedelevatorfartz on 11.24.17 at 5:42 pm.
Tax and spend , tax more and spend more, tax and tax and tax and spend way more.
Push that debt can waaaaaaay down the road to Millenial-ville when the country will truly be bankrupt….
The children of millenials will be cooking their parents over a campfire……
#1 Agreed. Then the PM and some of his friends (inc the Mulroneys etc) because most here are not a fan of hypocrisy. Look up how many Liberal/ gov’t execs have financial ties to marijuana groups. Conflict of interest?
Between our small business and personal, yes we pay our fair share. Thx for asking. And just like our PM/ finance min etc do what we can to reduce what we pay.
Single earner, family of 4 (2 kids)
(Max RRSP contribution, tax reduction at source)
#9 crossbordershopper on 11.24.17 at 5:51 pm.
well, with 20% corporate and 12% and no state tax in florida, and better write off”s, mtg interest etc. i dont see why anyone would bother staying in Canada.
If your successfull or want to be, then pack your bags.
i was talking to a bong selling store, waiting for legalization, he thinks he can do 400-500K gross, i said dude collorado stores do millions, and in us $, Canadians are poor, cheap and troublesome to sell to. Asking all those questions,
Ask the natives if they pay their fair share of tax? thats right, when about half of people in Canada pay no tax, like nothing, what is fair, like really what % is fair if you pay nothing. perhaps we should change the question, what else do you have to offer our society.. the real question, if one person gives of their money in forms of tax, what does a poor person offer, obviously not money, how about time, and effort. food for thought.
why would a successful person even try.
#10 Eyes wide shut on 11.24.17 at 5:54 pm.
The stupidity of majority of the masses and their financial illiteracy is mind-boggling. No wonder Canada put a drama teacher with no experience in the PM’s chair and the Americans elected an orange clown as their President. It is a flawed democracy that we pride ourselves in. Liberals or Conservatives, Democrats or Republicans – they are all the same. Nothing changes. They are all hungry for power and money and will sell their souls and their countries to achieve both. However, it is not the politicians who are to blame. We, the people are. We are the classic educated illiterates – uninformed, materialistic morons with power to vote. We do a miserable job in managing our personal finances and expect the Government to do it for us. Until we become an informed and a financially prudent citizen, nothing will change.
Calling 400 posts by midnight.
Had a shit year with consulting, gross was only 138k last fiscal year. Only 5 months of work.
Book is doing good. Best Invoice and Keys Me on track to total a million this year.
Off shore forex. Wouldn’t you all like to know.
Oh just in case CRA is taking notes.
Everyone knows I’m a bull shitter, a creative writer.
Wondering how much you spent so far on tracking my off shore activities.
Zero in my name. Good luck with your search while I compound huge. Proxy servers and encryption and a ghost that trades for me. Smoking Man Ghost.
If memory serves me good, we were close to 98k each (me bit above, mrs NoName bit bellow) dysfunctional family of 4.
income/tax/marginal tax rate.
income/tax/marginal tax rate.
#13 Cecil Henry on 11.24.17 at 6:03 pm.
Income tax is theft. You want a benefit?? YOu pay for it. YOu don’t want it, then don’t pay. Income pay flips that. Now your a piece of livestock. Its obscene.
TAx should be a flat tax.
And yes we pay far too much tax, to be controlled and coerced with ONE vote every 4 years.
This is communism, and its hell.
Yuri Maltsev: Why Socialism Will Never Work.
The modern Liberal’s efforts to attack the successful through government without openly initiating a confrontation, by cloaking their assaults within layers of phony empathy. (Phoney because the Liberal will only sate their empathy with the money of others.
If you’re getting everything for free then someone ELSE is being robbed with your complicity.
Steal from the productive: envy as social policy.
A serf paid 10% in taxes, and we pay 50% (and its not enough). NO MORE.
What is your fair share of what someone else has earned. It has to be EARNED before it can be taxed and stolen.
Otherwise why work.
#14 Bilious Festeroni on 11.24.17 at 6:05 pm.
Mostly a single earner (97% of income)
$37,200 in tax, CPP, EI, etc.
Expecting that CPP and OAS won’t be around by the time I hit 65. Planning on supporting myself.
My wife and I between us grossed about 40K last year. We paid almost nothing in income taxes thanks to both being self-employed, with lots of write-offs and making (relatively) large RRSP contributions.
No house, but a high six-figure portfolio.
#16 Democracy Is Mob Rule on 11.24.17 at 6:08 pm.
Taxes were such a burden during the Roman era that being close and a good friend of the emperor gives you a big tax exemption. As its citizens suffered from high tax rates which resulted to poverty, the Roman elites were enjoying the good life, even making a direct path to high office.
Merchant’s don’t have enough money to pay their taxes and still have something left for them. To avoid fines, a majority of traders were forced to sell their only source of livelihood just to pay their dues. The result is lesser and lesser tax money as years go by and an ever increasing tax rates as a result of less market activity from bankruptcy.
Love it when Liberal-NDP voters get bit in the ass by their own stupidity. Vote for more entitlements cause I’m maxed out.
Encroaching socialism will ensure our “black market” economy grows at a healthy clip. You might want to stay on the right side of the law, but ……
#19 Guy Incognito on 11.24.17 at 6:09 pm.
Well 110k salary and whatever gets deducted I pay.
Rrsp gets me a 7k refund cheque.
Another $35k in airbnb and basement apartment rent pay no tax F you Justin and Bill. Not worried about airbnb shakedown because I don’t live in city.
EVERYONE in Canada – including rich people – pays way too much tax in relation to what they make, and the services they receive.
The government takes your taxes and basically flushes half of what they take down the toilet. Nobody seems to care enough to do anything about it. When the government needs more money, they simply raise existing tax or introduce some nonsense new tax (IE carbon tax).
The question (to me) is how do we hold them to task for the amount of waste? Voting them out once every 4 years? Não esta bom o suficiente. When a gov’t organization wastes billions of tax payer dollars (example – the Phoenix pay fiasco) , the people running the show who supposedly are providing oversight need to lose their jobs, lose their pensions, and get booted out the door. How to make this happen?
Over taxing the rich is a rather lazy way of generating dollars – why should the rich be taxed any differently? It’s not a crime to be successful – in fact doesn’t this country want people to be successful? Maybe it’s not worth becoming a doctor, lawyer or successful business person.
This is just for me not my spouse:
That’s under 20%. Not bad but my earnings aren’t especially high.
“Families now receive $6,400, tax-free, for each child under six and $5,400 a year, per kid, for 11 years after that.”
“This week the prime minister committed $50 million to survivors of residential schools in Newfoundland (before the province joined Confederation).”
OK, point taken about this Liberal Government finding any excuse to give money away without being bound to find appropriate sources of revenue to pay for it. Their irresponsibility with our tax dollars is simply abusing the financial illiteracy of our population. We will pay dearly for this government’s financial mismanagement.
That being said, with respect to the $50M settlement and apology, the harm that was done under the residential school program was done from the period 1949 through 1978. Newfoundland joined confederation MONTHS after the first schools opened. In the decades that followed, CANADIAN aboriginal children were taken from their families, stripped of their language and culture, and in most cases sexually and/or physically assaulted. Because the schools were opened while Newfoundland was a distinct colony and because the federal government did not directly steal kids from their homes (they financed the provincial government department that did it post-confederation), the Newfoundland aboriginal population was explicitly excluded from the government’s past apologies and settlements on this issue. I can see how that is both emotionally hurtful and financially unfair.
I don’t expect everyone to be fully knowledgeable of all issues, but this one in particular does seem like it rights an inherent unfairness in what the government did in terms of past apologies and settlements. It deserves a bit of additional context, in my opinion. You can still disagree with the approach but the context for this particular giveaway is pretty critical.
Gross: $113k (including all benefits)
Tax paid: $24k (21%)
Marginal rate: 33.89 % (Ontario)
I’m actually OK with this. In fact, I don’t even mind contributing more (which I surely will, the way the Liberals are spending) if I thought it would be well spent. We don’t do as well for the poor, disabled and elderly in this country as we could. Yes, there are people who abuse welfare or disability systems, but I believe they are a minority.
#26 Debtslavecreator on 11.24.17 at 6:26 pm.
If you measure tax rates based on effective tax rates the self employed / Trust fund babies pay a much lower % of their true incomes and effective tax rates are very low for a small number of super rich precisely because a large proportion of their income comes from dividends, cap gains and trust holdings.
Another much larger group that pays a very low effective tax rate is RE investors who live primarily off rents.
I deal with many and the typical income is 20-30k line 150 and a net worth of 2-5 M.
The upper middle class group of executive and other high salaried employees are the true tax donkeys – people similar to me and my wife who pay a very high effective tax rate to see low income people get “free” tuition and soon a 2500/ year rent payment taken from hard working mid-high income pros and our children via reckless deficits.
No amount of tax is going to help these crook politicians.
We are on a path similar to Argentina and Venezuela but call it the light version since I am an optimist.
The non salaried rich need to pay more as a % of total /all sources of income but no one in Canada deserves to have more than 30% stolen from them by the majority who don’t pay much.
Especially the army of public sector workers and especially retirees who are not and never were part of the tax base.
Govt employees do not pay taxes.
This is socialism collapsing.
Contrib 24.9K to RRSP.
$22,000 taxes (CPP, EI, and income taxes)
-Maximize RRSP and pension contributions.
$4,200 donations and political contributions.
Personal Income and Taxes or Business as well?
What kind of lying, cheating, condescending, hypocritical, naïve, delusional, underhanded, self-promoting, flamboyant, crocodile tearing pink sock, apologizing, political engineering, socialist, misinformed, over emotional, selfie king, do we have running this country anyway?
Sorry, I don’t have your command of the English language as I’m sure I’ve missed a few.
I earned about 29k working retail ( #deplorablelatemillenial or however hashtags work, i dont use twitter…)
3k in taxes, 1.2k CPP.
Who really knows as all the “Panama/Paradise papers” have shown there are a lot of Canadians who work probably harder to hide their income and default taxes then probably at their day job.
Gen Xer’s and Mill’s are all hept up on saving the world, apologizing to everyone and writing cheques. They think, like they were probably raised, someone will save you and pay all your bills.
I think the subject line should be is where are all the dollars going to come from to pay for these programs? Not from you .62%er’s. They too busy hiding it.
This is not going to end well – probably sooner rather than later. NA MINHA HUMILDE OPINIÃO.
Did not pay, I receive. Smart tax planning. :)
Muito interessante. For a little perspective, this is Hawaii:
Tax deferred pension plans -29.
Plus about 1/month for health insurance.
Not sure what GT has against Costco. Buck and a half for a hot dog and a drink. Such a deal. Just about the only deal left in this country.
Think I’m doing my part and don’t like seeing the money wasted. In the past, I have voted for all 3 major parties at one time or another, but not liking the direction the current government is taking.
#37 Horatio Alger on 11.24.17 at 6:38 pm.
$690k (mostly T4 so prob $275k this year). I have paid over $5MM in taxes in the last twenty years. Você é bem-vindo. We are DINKs and have no complaints except that we can’t stand the waste. Got in a good heated discussion with some limousine liberals last night. They have loads of investments and real estate but want everyone else to pay more. I suggested a wealth tax (jokingly) — but they didn’t like that idea. I love Canada and don’t mind paying my share but it’s getting a little ridiculous. We live in the People’s Republic of BC. Who is John Galt.
#38 Goebaktuweir Ukamefrumm on 11.24.17 at 6:38 pm.
wife and I, no kids.
total income combined: $282,000.
total fed tax paid combined: 36,700.
total Qc tax paid combined: 46,600.
#40 South OK Fool on 11.24.17 at 6:45 pm.
Family of two boomers, one still working part time in a vineyard.
#41 After Communism on 11.24.17 at 6:45 pm.
Income tax: $4400.
Property Tax: $5800.
HST: I don’t know.
As pointed out here in the past when irritating lefties show up, this is not a social justice blog. We like money, income, investible assets, capital gains and financial independence. We practice tax avoidance. We’re into real estate, exchange-traded funds, designer dog treats, crypto currencies and mocking the deplorables who think it’s okay to be seen near a Costco.
I am still chuckling about your statement; what would we do without you? :)
Well, it has not been a great year for me due to my locality, harder times this year.
As many have mentioned, everything is just going up, it is mostly all those little things that bite your income that clearly adds up thus reducing one’s spending or savings power.
Probably around the 50 to 60k mark, 10 to 15k on taxes and a whole bunch more on all the municipal charges, cost of living, etc..
#44 Where does all the money go? on 11.24.17 at 6:48 pm.
Family of 5 (2 unequal earners plus 3 kids – school age over 6 yrs)
Total income from tax return – $207k.
Total income tax – $38k.
Property taxes – $4k.
HST, gas taxes, etc. – $ thousands more.
Family income: $107K. Income taxes around $20K.
Looking over the last thirty years or so, the middle class is getting eaten alive. I am in the middle class.
I really really wish i was in the top 1%, but I just can’t seem to make it. Easy money’s been made. It’s too late. And you need money to make money. Plus wages for middle class haven’t budged. Maybe all those big fat business men can pay us lowlifes a bit more. This way their taxes don’t have to keep going up.
So I’m ok with JT and company. And so are many Canadians:)
Over $80 K this year plus $500 under the table so far , take home is $51K. Wife retired at 50 and has no income. I’m proud to pay my tax and I have no issue with sharing my good fortune with others. But, why on god’s green earth did CRA fine me over $1000 for a mistake I made of my TFSA contribution unbelievable, and is a slap in the face. Fool me once, shame on you, fool me twice…not going to happen.
I think Norway has the right idea…total transparency with income statements…nothing to hide here.
#47 UnclePickles on 11.24.17 at 6:53 pm.
Don’t know why everyones worried about debt. The whole world is living off credit. Just enjoy it till everything collaspe on its on weight. Does anyone really think any of this debt is going to be repaid? The next generation is just going to borrow more to pay for more spending. And so on and so forth. We’ll all be dead by then for any of it to matter. As for our income, let’s say we took so much more in handouts than the tax we paid.
2016 $350k around $75k taxes. 2017 $500k taxes TBD.
Nice try though.
Come on Garth open the kimono – quantos?
$97,200/$5,377/5.5% but the number doesn’t capture everything because most of that is “eligible dividends and I already paid about $32,000(25%, foreign income so not eligible for the small business tax deduction, don’t know why hey I am bringing US money into Canada making Canada stronger!) of tax on that money through my corp so the real numbers are more like.
These are more like 2017 numbers I can’t remember 2016 off the top of my head my wife would be about the same I would be lower.
Personally I think for a working family to be paying $52,000 a year in taxes is plenty enough already. The problem isn’t that people don’t pay enough taxes, it’s that government spending is out of control.
Oh and I forgot my property taxes $4,500 and GST $6,800, $2,000 in Carbon taxes and whatever other taxes are embedded in Gasoline, smokes and booze So let’s call it roughly $65,300 in taxes on $162,500 income so combined we look like this:
It’s actually a little higher than that because I didn’t include all the taxes.
Venezuela here we come!
$50k income last year & I would have paid $7k in taxes but I used the last of my tuition credits from getting a trade (I made Journey just over a year ago).
The problem isn’t really income inequality, but wealth inequality, especially dynastic wealth that undermines equality of opportunity within a generation or two of its re-emergence.
Taxes pay for roads, schools, hospitals, & other essential services. I tore the cartilage in my knee at sixteen, so I wouldn’t be walking/working today if not for socialized medicine. (I doubt my family could have afforded the surgery.)
In evolutionary biology, multi-level selection theory tells us that selective pressures operate at every scale they can. In other words, group selection is a real, and it operates as follows: selfish individuals beat altruistic individuals within the group, but groups of altruists beat groups of selfish people. Therefore, there is a dynamic tension in our evolution between selfishness & altruism that ensures that any group that becomes overpopulated by selfishness will fail. So pay your taxes ;-)
As for deficits, Garth, I said I would keep repeating myself if you kept complaining about them. Sovereign deficits actually help prevent financial crises & the collapse of capitalism. See Professor Steve Keen’s explanation here:
I just noticed that all in my wife and I pay more in taxes than she earns! She works for the government for free!
149000 family income, income taxes 22685.
this is only income tax, without property taxes, GST, PST, and many hidden taxes.
I made about $55,000, and paid about $6,000 in tax. I put a little money into RRSPs and a lot into TFSAs. Unmarried.
#57 Uncle_Scrooge on 11.24.17 at 7:11 pm.
I am ok paying taxes.
I am not ok with the government squandering what I pay on pet social justice issues (women’s rights in Madagascar…where they currently have a plague going on…like giving a kid without power an Xbox)…and needing to increase taxes to do so.
Wife and I combined in 2016 (personal income only):
From our income we pay.
$45K/year in child care costs. Have 2 kids.
I have stopped donating to all charities. Easiest way to send a message to people who lean a little further left than me.
You can still help people directly, don’t worry about the receipt, and tell the charities to get the money they need from JT.
Can you guess how many people tell you “I know it was a mistake” when you tell them JT took it first?
#15 tomohawk52 on 11.24.17 at 6:06 pm.
My wife and I between us grossed about 40K last year. We paid almost nothing in income taxes thanks to both being self-employed, with lots of write-offs and making (relatively) large RRSP contributions.
No house, but a high six-figure portfolio.
Overseas, nice life, but didn’t earn anywhere close enough to buy a house in BC…actually, scrap that. What do I need down?
OH, darn, nice lady at the bank or that sweet mortgage broker will probably qualify me for 500k without verifying anything, so a nice 1 bedroom crappy apartment on the outskirts of YVR. doesn’t matter if I can afford taxes, strata, emergency repairs etc…or not,
just as long as I get a sick piece of BC real estate. Yeah!
I mean everyone in Canada is a millionaire real estate guru. They deserve to pay high taxes.
#61 crowdedelevatorfartz on 11.24.17 at 7:16 pm.
My silk kimono is wide open.
Maxed my RRSP’s got back 5k(slammed it into a TFSA)
So I paid 13k in income tax.
All the other taxes I pay are the price of living in a silk kimono world.
Not enough and way too much!
But despite all that taxing and spending, they chose to renege on their promise to ditch the stock option deduction, something that mostly benefits zillionaire CEOs.
#64 Property Accountant on 11.24.17 at 7:17 pm.
Me & wife’s income, 125K.
My taxes 11K, her’s 6K, both RRSP deduction mexed out.
#35 Ex-Cowtown on 11.24.17 at 6:35 pm.
Not sure what GT has against Costco. Buck and a half for a hot dog and a drink. Such a deal. Just about the only deal left in this country.
There is always the IKEA breakfast.
Man am I ever glad I’m retired … the poor workers not only have to put up with all these taxes but the commute also. Stresscity.
#66 RE Legendary Agent on 11.24.17 at 7:20 pm.
Tax 85% of anyone who earns more than $100k a year.
Make all money spent on real estate tax deductible.
This is embarrassing..
$28k. I’m not sure how much in taxes but I always end up owing money.
Until recently I was an ECE. Not worth it. Even with the wage enhancement grant of $2 per hour my best year I think I made close to $30k. Divided by 12 that’s a whopping $2500 per month. It went quickly! With rent being close to a thousand a month, car payments, food, gas, insurance, there was hardly anything left.
The wage enhancement grant for us underpaid child care workers ends up being a loan as we usually owe money at the end of the year, so back to Uncle Justin it goes.
I wish employers would take off more taxes for lower income earners because having that extra bit to pay (I paid an extra $700 last year) when you’re a single person can be a bit much.
I try to save as much as I can but it really isn’t feasible. I hated that the government gave us child care workers extra money. It made me feel like I was on assistance.
So I have mixed feelings about his plan to subsidize women and low income earners. On one hand it would be nice but just don’t make me pay it back at the end of the year, Uncle Justin. And don’t punish the guys, either. We’re all in the same boat!
#68 crowdedelevatorfartz on 11.24.17 at 7:23 pm.
“The problem isn’t really income inequality, but wealth inequality, especially dynastic wealth that undermines equality of opportunity within a generation or two of its re-emergence….”
Ahhhh, the innocence of youth.
You’re assuming all govt has the best intentions with your tax money….
I used to think like you until I eventually realized the tax dollars I so willingly gave to the govt were being urinated against the wall in white elephant projects of dubious value or necessity.
Again and again and again.
When you see ALL levels of govt doing the same idiotic, wasteful election bribery year after year after year……it sickens you to the point you dont want to pay “your fair share” because it ISNT being spent in a wise or cost effective manner.
What did you “red seal” in ? Electrical?
#69 Asylum Seeker #67,350 on 11.24.17 at 7:23 pm.
Employment income: $387k.
Income taxes: $155k (no RSP room after pension adjustment)
Was an expat, returned a couple of years ago. Much as I love this country, the war on the 1% has me seriously considering leaving again.
#71 paying my share on 11.24.17 at 7:24 pm.
Sold some revenue property last year, with income and capital gain, wrote a check to CRA for almost $700K, ouch. Working like a dog had paid off well, but given the Gov gets more of the profit than I do, I decided to work more like a cat (less). Less money for the Gov and less for me. Somewhat missing the returns but spending more time with the family and curled up in front of the fireplace.
#72 Binder Dundat on 11.24.17 at 7:27 pm.
Gross household income: 189K.
Federal and provincial tax paid: 39K.
#28 Pablo on 11.24.17 at 6:29 pm.
$22,000 taxes (CPP, EI, and income taxes)
-Maximize RRSP and pension contributions.
$4,200 donations and political contributions.
$4,200 donations and political contributions.
that is not tax! and number is deceiving, i donated to flat earther 75cad earlier this afternoon, website shows “tax rebate” on donation and is in 50cad range.
so basicly you donated 1/2 of that amunt.
noun do·na·tion \ dō-ˈnā-shən \
Definition of donation.
: the act or an instance of donating: such as.
a : the making of a gift especially to a charity or public institution.
b : a free contribution : gift.
not 1/2 its 1/3 typo, but you guys probably figured that one already.
#75 Guy in Calgary on 11.24.17 at 7:30 pm.
140k-150k household. We received a large refund due to claiming deductions since we moved from Ontario to AB for work (with more carried forward since we moved later in the year). Due to having a reasonable idea of what we’re doing, I do not think we will ever be in a position where we pay tax at the end of the year with our current incomes.
Ah, the make believe list of wages and taxes.
My wife makes $103,000.
We both have defined benefit pensions in Ottawa (Municipal and Federal), have amazing job security, extremely low houses prices in Ottawa when we bought (I’ve never had a mortgage over $140,000) and guess what?
Trudeau still sends me $212 a month for having kids (7 and 4) because I’m apparently “Middle Class”.
LOL, this country is going to be bankrupt soon.
#78 After Communism on 11.24.17 at 7:34 pm.
@53 knee surgery is less than a car and less than house rent. You exaggerate. Maybe you would be frozen in a snow bank without free $40billion in housing, if your family can’t offord to lend you the couch.
#33 Rick on 11.24.17 at 6:33 pm.
Did not pay, I receive. Smart tax planning. :)
I live in France. Taxes are calculated a bit differently in that there are higher deductions than in Canada (for pensions, social security, etc) and the subsequent tax bill after filing is a percentage of take-home pay only.
Total tax bill, including deductions, is about 50% on a roughly 60K€ income (
90K$ CAD). Of course as in Canada the pension contribution you’ll eventually get back provided you live to 60.
Yes, it’s high, but it’s a trade off for the enhanced safety net, employee protections (almost impossible to get fired here), heavily subsidized transit (the Paris metro costs far less than the Toronto subway, for 7 times as many lines + regional RER routes included) and general lifestyle perks like minimum 5-week paid vacation. All the same, the taxes are such that I will likely not stay here long term.
It is my summation that Steve Keen is off his rocker. Check out Milton Friedman or Thomas Sowell or even Ludwig von Mises or Murray Rothbard to get an idea how economies really function. Or Adam Smith for that matter.
This stuff isn’t rocket science and John Maynard Keynes and all who followed him are merely government apologists. When the government is looking to run a deficit, all they have to do is put out a few grants and they’ll find someone to say deficits are a good idea. Although Keen has gone beyond they pale when he describes them as “helping”.
Sustained structural deficit financing leads to default and bankruptcy, for individuals, corporations (except Tesla) and nations alike. It is mathematically impossible for any other result. Anyone who got a “C+” in math knows this. The only thing that has kept the current government debt sustainable is inflation, which reduces the current obligations of past debt. They have to inflate the debt away at 2% per year or the system collapses. That’s why they do it. Not because inflation is good for anybody. And of course deflation would be a total disaster because it would make all those past obligations even more valuable (and expensive to service) in the here and now.
This is why inflation must be positive, even if it means rates go negative. How you can have negative interest rates in a time of positive inflation doesn’t make any sense to me, or even an interest rate below the stated inflation rate, but times are strange indeed.
And anyway I don’t believe the government official inflation numbers any more than I believe the unemployment numbers. Unadjusted inflation is probably closer to 4% than 2%. The model is pretty complicated, and all the adjustments lower the reported rate.
Also the effect of inflation is pretty insidious from a tax point of view. Maybe you get a 2% cost-of-living increase at work. Sound fair because inflation was 2%. Except that the whole 2% goes in the tax program at your marginal rate, so you don’t get 2%. Every now and then they adjust the brackets but not very often. They should adjust them by inflation every year, but they don’t.
#82 MSM-Free Zone on 11.24.17 at 7:37 pm.
I’m a blue collar deplorable, grossed just under six figures (nothing really celebratory in the $GTA$), of solely wage income last year, stuffed my tax-deferring RRSP with whatever pitiful amount my uncertain and fragile private DB pension would allow me, and dropped about a grand on tax-deductible charity last year.
Being a deplorable, my returns are not complicated, and my Turbotax software tells me I paid around 21% in total income taxes for 2016.
Actually, I don’t mind paying income taxes (roads, sewers, police, EMS, heath care, education, etc) as long as they’re spent responsibly, i. e. no Harper fake lakes, corrupt F-35 cost overruns, Baird/Clement gazebos, Kenney TFW hypocrisy, Fantino veteran abuse, KPMG off-shore tax scam forgiveness, etc.
This is my Canadian paystub every two weeks:
$3,091.35 withheld in tax.
$64,918.35 withheld in tax annually (more than my wife makes in a year)
I have a unique skill set that allows me to make this much, but it does really make me wonder why I would stay in Canada. When as I earn more the tax bill gets even HIGHER!!
So many other beautiful countries around the world that would charge me so much less to live and work there.
Please just give us a FAIR flat tax that EVERBODY PAYS!
#84 MSM-Free Zone on 11.24.17 at 7:42 pm.
#38 Goebaktuweir Ukamefrumm on 11.24.17 at 6:38 pm.
Racist, bigoted, troll alert.
“We believe that Chinese buyers spark the cycle, while local investors chase the momentum,” Credit Suisse said.
The story is about Australia and I am tired of your anti-Chinese posts. You are gone. & # 8212; Garth.
The moose is on the lose. How else would the money go missing unless there’s a serious spending spree?
Garth, you are not taxed enough. Now you, a white man, have appropriated the Belfountain General store, restoring it to its heinous colonial roots, it is only fair that it is now turned over to a diverse social justice collective so they have free space for their non-binary yoga and origami classes and diversity initiatives – something’s very wrong with the colour of snow.
Now, before you turn over the keys if you could also leave $1 million in cash inside. This is so the three volunteers, who will run the space, can get through the first year and conduct overseas study tours on diversity in Cabo, Barbados, San Juan del Sur.
No maintenance or cleaning will be conducted over the next five years, so the space will soon reach its use by date. However, you will be allowed to buy it back at that time from the scj in a state of disrepair for a minimal sum of $3 million dollars.
#88 FOUR FINGERS WATSON on 11.24.17 at 7:44 pm.
Garth : sleeping at the switch ?
#38 Goebaktuweir Ukamefrumm on 11.24.17 at 6:38 pm.
DELETED. Desculpa. The idiot got by me. & # 8212; Garth.
#89 Guy in Calgary on 11.24.17 at 7:45 pm.
“140k-150k household. We received a large refund due to claiming deductions since we moved from Ontario to AB for work (with more carried forward since we moved later in the year). Due to having a reasonable idea of what we’re doing, I do not think we will ever be in a position where we pay tax at the end of the year with our current incomes.”
Obviously had tax deducted at source and netted a tax liability.
#90 FOUR FINGERS WATSON on 11.24.17 at 7:50 pm.
CPP benefits will be increased. Families now receive $6,400, tax-free, for each child under six and $5,400 a year, per kid, for 11 years after that. The age at which people get seniors’ pogey was rolled back to 65 by the current government. The cost is $69.4 billion. (By the way, OAS has an unfunded liability of about $560 billion – to be paid by future citizens.)
You don’t get elected by telling the truth and taking stuff away Garth. You get elected by lying and handing out freebies. Turdo is on a roll, Libs will get reelected with a bigger “ majority “.
#38 Goebaktuweir Ukamefrumm on 11.24.17 at 6:38 pm.
#92 Lost. but not leased on 11.24.17 at 7:54 pm.
During Pierre Turdeau’s reign..Canada’s National Debt rose over 700%, no other Prime Minster even comes close.
Is Justin up for the challenge? bwhahahahahahaha.
Trump is spending way more and reducing tax revenues big time.
Let’s see which Country blows up first. Canada or the US of A?
Both countries will always be in debt.
Question always boils down to……Corporate Welfare which the US of A had to provide….not that long ago.
Or social welfare…..which for many countries is why democratic systems came into existence….to share the wealth….
This is why Monarchies fell in many places…..corruption…disregard for the ordinary person….don’t forget the ” let them eat cake”.
We too in Canada suffer from the Wrong Doings of past societies and power gluttony…..can’t hide it forever.
Politicians need to heed.
Fantino and Ernie Eaves now selling marijuana ….go figure.
The smell of greed that changes old principles…..leopards do change their spots…..lefties or righties?
#94 Pete from St. Cesaire on 11.24.17 at 7:59 pm.
By the way, OAS has an unfunded liability of about $560 billion – to be paid by future citizens.
People who haven’t even been conceived yet certainly haven’t consented to be burdened with this. They won’t want to be citizens (for other reasons too). You can be sure that by then it will be made nearly impossible to leave the country (just like in North Korea, East Germany, Cuba, etc.)
#23 Leinnay on 11.24.17 at 6:17 pm.
“Families now receive $6,400, tax-free, for each child under six and $5,400 a year, per kid, for 11 years after that.”
Quite right. I just ran the calculator for a hypothetical couple earning combined 120K a year, paying 18k in rent, with two kids under 6. Result is a pitiful 5k total in tax credits (vs maximum possible 13k).
Trudeau is determined to massacre the 75-90 percentiles in order to reward irresponsible life choices by lower-income people. The truly rich, as always, get off scot free.
CPP benefits will be increased. Families now receive $6,400, tax-free, for each child under six and $5,400 a year, per kid, for 11 years after that. The age at which people get seniors’ pogey was rolled back to 65 by the current government. The cost is $69.4 billion. (By the way, OAS has an unfunded liability of about $560 billion – to be paid by future citizens.)
Yes, and for many families these deposits into their bank account are considered a cash windfall which was never the intent. They enjoy a night out at a nice restaurant or book an Orlando family getaway while they build-up consumer debt and attempt to pay down their mortgages on over-valued real estate!
Most don’t have a nickel saved for retirement and many have little more than a pittance in RESP’s.
So the Liberals are spending way more than the Govt is taking in…adding to the budget deficit… what’s the knock on effect? Future Govt’s will have to reduce spending and services? Come on Boomers I need your help, you must have seen this play before ;)
I mean, the US just keeps growing their debt don’t they?
#98 Anonymous_1235 on 11.24.17 at 8:12 pm.
From a US-Based Dog, resident in a northeastern tax-free state.
Married Filing Joint.
Adjusted Gross Income :135,000.
Fed Tax Payable: 14,500.
The stuff nobody seems to talk about:
Social Security. Medicare: 7,000 paid by me, 7000 paid by employer.
Property Tax : 10,000.
Health Insurance : 20,000 (employer pays this but lose job, you’re on your own)
A little under 100,000 beans. It seems to be enough to float me and my interests and I am debt free. More importantly I happen to live in the best province in the country for taxation rates, as well as its many other attributes.
But the income tax isn’t the whole story. No sales tax in Alberta. Health care premiums paid by the province. Lower auto insurance ( by at least 1/3 using BC as a comparison) and lots of other smaller savings in areas where the Alberta government minds its own business and allows the market to set prices such the sale and selection of wine, beer, etc. All of us should pay our fair share and I have no beef with anyone who educates themselves and uses legal means for tax ‘avoidance’. But I agree with yesterdays post from Domain #398 – slap the cuffs on the cheaters.
Everything that comes out of T2’s mouth is all about looking and sounding stylish. Duterte sure put him in his place though….
This sounds like inspector Turner for. The CRA is coming to arrest me if I don’t send him some gift cards:
I’m not going to bother hauling out the tax papers but:
Total is pretty much equally split between the wife and I. Wife has a contract position and we save every receipt. Whatever we paid, it was undoubtedly low for the income bracket, tax return was 5 figures.
But the real action at the IHCTD9 compound is knocking over taxes on consumption. Need to prepare for the coming T2 nuclear winter.
Please Garth, for the love of God don’t even think of opening the kimono.
For the first time I heard a colleague at work referring to OSFI B20. This individual was explaining (in a panic) how they were closing on a home purchase which they pulled into December (from 2018) to avoid the new regs. $1.2M on a bungalow in the inner 905!
Gets better, they explained that some folks closing in the new year were busy borrowing large sums from friends and family to plunk down a massive downpayment in order to do an end run around B20!
Who needs an poorly regulated Credit Union when Family Savings & Loan is ready and able: Their new slogan …
“Your family is richer than you think!”
#68 crowdedelevatorfartz on 11.24.17 at 7:23 pm.
What did you “red seal” in ? Electrical?
fartz, fartz fartz…
Sorry Garth totally off topic!
The death of David Cassidy; whether a fan or not; I was not particularly, but I just read a story about his last words before death, ” So much wasted time”! Wow, imagine that to be your last words in life; it is an eye-opener. Here is a link to the story if interested:
We are OK with paying our taxes provided it goes to social programs, education, health care, the CBC, funding for research, the arts, etc. i. e. things that help the social fabric and can spur new technologies. I am less enthused with T2’s recent moves of wasteful spending… and am becoming more disillusioned with him as time goes on.
Household income (2 professionals) 355K per year. Paid in BC roughly 112K in BC and Fed Taxes… no sprinkling for us, hiding in a business or other writeoffs etc…
#108 crowdedelevatorfartz on 11.24.17 at 8:34 pm.
I forwarded it to two of my buds.
An electrician and a millwright……
#80 Howard on 11.24.17 at 7:36 pm.
I live in France. Taxes are calculated a bit differently in that there are higher deductions than in Canada (for pensions, social security, etc) and the subsequent tax bill after filing is a percentage of take-home pay only.
Total tax bill, including deductions, is about 50% on a roughly 60K€ income (
90K$ CAD). Of course as in Canada the pension contribution you’ll eventually get back provided you live to 60.
Yes, it’s high, but it’s a trade off for the enhanced safety net, employee protections (almost impossible to get fired here), heavily subsidized transit (the Paris metro costs far less than the Toronto subway, for 7 times as many lines + regional RER routes included) and general lifestyle perks like minimum 5-week paid vacation. All the same, the taxes are such that I will likely not stay here long term.
Sorry I meant 40% tax, not 50%.
50% income tax (incl pension) on 60K€ would be insane even for France.
“There are some 270,000 people in Canada who earn over $230,000 a year, in the 53% tax bracket. That’s 0.62% of the population. The average tax they paid (before the latest increase) was $160,000.”
Comparing a minimum of $230,000 income in this tax bracket to the average tax paid of $160,000 is misleading. If you’re going to say they paid an average of $160,000 in taxes, why don’t you indicate what their average income was?
truth be told: the privately owned global banking system is in an long overdue death spiral.
People come here and type stuff like: capitol gains exemption on a house is ‘profit’ or a ‘windfall’; in reality it is neither, it is an exemption from being taxed on inflation (inflation being the hidden tax). A 25 year amortized loan will see the borrower pay about double the original principle amount. When a person buys a house in a desirable area for 500k he is virtually guaranteed that the house will be worth about one million in 25 years: it’s called inflation, show me the windfall, show me the profit - you cant. you spend a million , you take a million when you sell, that’s not business, that’s not ‘profit’
#112 Buforf Wilson on 11.24.17 at 8:46 pm.
$263,164 Earned Income.
$77,400 Income tax.
If Trump’s tax plan goes though and we avoid a stock market correction i’m in line for significant capital gains from my portfolio. If some gains were realized in say, Jan/Feb 2018 and the Feds changed the cap gains tax inclusion rates in the March 2018 budget, does anyone know if it would be retroactive to my gains, or would it only affect gains realized after the budget?
110,000 family income, about 20,000 in tax as some of it is passive income.
I also have a question for blog dogs:
What is wrong with shopping at Costco? To put it differently, what are the financially viable alternatives for a family with four children? I have tried to reduce our grocery bill by exploring all of the other options for buying food in Canada/Ontario and always end up with buying most of it at Costco finding it impossible to match their quality/price ratio elsewhere. Any ideas are highly appreciated.
#115 Popeye the Sailor Man on 11.24.17 at 8:53 pm.
Tax form says the following;
Total income: 118K.
Taxable income: 87K.
(have lots of deductions; stay at home mom and two disabled children)
Do you realize what a vicious attack you continue to mount on Canadian socialism? Do you really think that this new generation, so dependent on the nanny-state, so arrogant, so disastrously educated, can ever grasp the futility of concentrating on dividing up the pie instead of growing it.?
Only when they have consumed all the Seed Corn and.
collapse comes will we rise from the ashes. The libs are in a dream world, clueless in economics and brain-dead as to human motivation. What a calamity.
But how noble of you to continue tilting, Don Quijote.
Nothing is wrong about shopping at Costco or elsewhere; do it myself; it was tongue and cheek; we do what we have to! :)
#118 Trojan House on 11.24.17 at 9:02 pm.
Justin – I pledge to give you 100% of my income because I don’t mind paying my fair share.
For one year I was considered “rich”. Remember your article yesterday on how bad mutual funds can be. Well my husband had a lot that he kept for years and the capital gain was what pushed my income into the stratosphere for one year when he died. It was get rid of them all or pay 2.4% on everything a year on all of it. So, it’s not necessarily just the rich that get caught in this net. Widows who inherit stocks or mutual funds get caught too.
#120 The real Kip on 11.24.17 at 9:05 pm.
I am looking forward my CPP/OAS should go well with the DB pension. Yesterday you told me I had “no money”, today you want to know how much I made last year? Sem chance!
Rock on Justin, I’m with you all the way!
Oops sorry, fat fingers, meant to say tongue in cheek.
Just in-case you are wondering:
#122 Parksville Prankster on 11.24.17 at 9:14 pm.
72K Split between me and the wife all as T5 Dividends which are then grossed up and given a tax credit because they are invested in Canadian companies and our own holding company. Taxes last year, about $900 (nine hundred), and a $1,400 invoice payable to our accountant who does both our TD1 general and Corporate filings at the same time.
Correction? We get $1812 in child tax benefit total for two kids including the disability supplement for one. Family income $148K. This benefit is sliding scale and not at issue for me, since it targets child poverty.
“Under the Canada Child Benefit, families with incomes of $30,000 or less receive $6,400 per child under age 6 and $5,400 per child per year for children aged 6 to 17. The benefit is gradually reduced as family income increases above $30,000.”
@$49 – Rich on 11.24.17 at 6:57 pm.
“2016 $350k around $75k taxes. 2017 $500k taxes TBD”
Could someone please explain how this is possible? Massive RRSP contributions?? Capital Gains?? Dividend income?? The taxes in any province on $350k are $130k+
Average Rate: 39.17%
This is all income (no capital gains, dividends).
#68 crowdedelevatorfartz on 11.24.17 at 7:23 pm.
Yes, I play with lightning! And we all wish the government would be less wasteful with tax dollars, me included. However, many don’t agree about what to spend the money on, hence politics…
#78 After Communism on 11.24.17 at 7:34 pm.
$10k these days for an ACL replacement, including.
$2k for the procedure and.
$8k for the use of the facilities. My mom is poor and always has been. My dad was self-employed and worked hard, so he would have paid for it, but it wouldn’t have been easy. Yes, I was exaggerating for effect, but not by much.
#81 Nonplused on 11.24.17 at 7:37 pm.
Milton Friedman taught us YT = MV, but he missed a term that makes all the difference: dD/dt. So the equation should read YT = MV + dD/dt. This is what Steve Keen teaches, and if you examine the empirical evidence for yourself, you can see that it is true.
Monetarism teaches that the correlations between credit (i. e. change in debt) and employment – as well as between credit and asset prices – should be zero. But the correlation is often 0.5 or greater, for which Keen offers a cogent explanation. I’m sorry you think Keen is an apologist for government, but that is your ideology. The facts speak for themselves & Keen makes the BIS data series’ that he uses available to everyone for cross-examination here:
I suggest you expand your knowledge-base beyond monetarism. Sustained deficits are only a problem if growth doesn’t keep up. Tax receipts scale with GDP, so if the debt-to-GDP ratio is kept constant, government debts don’t ever become a greater burden relative to their income, cetis paribus.
More than that, since debt IS what we use for money, eliminating it removes the medium of exchange from circulation and creates deflation. That’s what happened during the Great Depression: people were paying down debt, which caused unemployment to spike & GDP to fall faster than debt was being repaid. (In other words, debt-to-GDP grew as people paid down their debts because the economy shrank even faster.)
Government surpluses, for example, mean they are taking more in taxes than they pay back into the economy, which shrinks private sector bank balances. You & I can only accumulate larger bank balances if someone else accumulates larger debts. Look up “sectoral balances,” or watch David Graeber explain here:
Months ago the plan was to. make it retroactive Who knows now, but will be spelled out in the bill if it should pass.
I paid over $150,000 in taxes last year on just over $300,000 in income. I also paid a $28,000 land transfer tax, and I’ll pay a fat capital gain in 2018 when I sell these Facebook shares that are getting too high risk. I can’t wait to vote these Liberals out, but we better get a socially conservative alternative. God dammit, why can’t people love people while still caring about money?! Seems we only get one or the other. Harper was an A-hole.
Self employed . Hide cash in a corp , yeah I’m toast.
Taxes paid - no idea , block it out . Wife would know she writes the cheques.
#129 OlderbutWiser on 11.24.17 at 9:29 pm.
2017 T4 YTD – Gross $804,206.27, total taxes withheld to date (incl CPP and EI) – $405,151.49.
I am quite certain that I am paying more than my fair share! This country is not the place to live if you are a high earning employee. You are clearly in the cross-hairs. Thank God I am retiring this year and will have the option to live anywhere in the world that I want. Trudeau and his war on those who work their a$$es off can go to hell…..
Sunny ways, sunny ways. The liverals want to pretend that repairing every social ill is possible for free. The harpercrite selfservatives sucked people into believing that any tax was wrong and that you too could be rich by buying a house. Tweedledee and Tweeduldum are both sides of a dishonest political spectrum. I have no problem paying my share of taxes. I like paved roads, fire engines, ambulances and hospitals, etc. I don’t like knowing that millionaire politicians and their billionaire buddies aren’t playing by the same rules they apply to me. Wasn’t it the Bronfmans who had an advance ruling by the cra that it was ok to move billions offshore without taxes when Cretin was cutting back on us and wasn’t p martin the finance minister who changed the rules about foreign flag ship ownership after reflagging his fleet. They all talk ethics but behave in ways that make their ethics questionable. Hated Harper, but at least I knew what he was about god bless.
#131 Vampire studies GMST on 11.24.17 at 9:30 pm.
Mrs V and I made about $55k each and had deductions.
totalling $15k and paid about $16k total tax, not incl CPP.
Good to see all blog dogs are are taking home 180k, but… “ya know, I only work like, 2 days a week”…
I thought the average family income, based on stats can was around 75k in BC, 85+- in GTA and 90+ in Alberta. Or have things changed?
I guess things have changed in Canada. You are now a loser if you don’t make over 100k? Agradável. But then again, with 900k house prices, I guess that is the only way.
#81 Nonplused on 11.24.17 at 7:37 pm.
I’ve only read limited amounts of Adam Smith (I keep meaning to read more!) but I thought you might like to see some of what he really thought, as opposed to the pop-culture interpretation of him as the champion of the invisible hand:
“No society can surely be flourishing and happy of which by far the greater part of the numbers are poor and miserable. "
“In regards to the price of commodities, the rise of wages operates as simple interest does, the rise of profit operates like compound interest. Our merchants and masters complain much of the bad effects of high wages in raising the price and lessening the sale of goods. They say nothing concerning the bad effects of high profits. They are silent with regard to the pernicious effects of their own gains. They complain only of those of other people.”
“It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.”
Hardly the bastion of right-wingery that many believe…
(As a brief aside, the quickest counter-argument I know to the “invisible hand” – the idea that self-interested behaviour *must* result in a pareto-optimal outcome – is the prisoner’s dilemma. Rational self-interest can easily result in sub-optimal outcomes for everyone, which is probably why humans evolved to be pro-social rather than rational.)
I have no idea what I or my wife paid in tax. I tend to pay more attention to what things cost. No point in saving 5% of your income if you then pay $2 for a $1 cucumber, and $10 for a bottle of wine that you can make for 50c.
Can’t afford Canada. Left.
Gross Income (2016) including housing allowance: $264,000.
Net Income: $264,000.
According to my 2016 tax return, with just little old me since I don’t have a spouse yet:
Total Income 241,510.
Taxable Income 192,330.
Total Tax Payable 67,216.
27.8% of my Total Income.
34.9% of my Taxable Income.
I’m single, 40 years old, and I guess a 1%er. Or a .62%er?
Now in Cayman where I pay 0% income tax.
Lindsay Shepard my hero. This is a true feminist.
She secretly recorded what acedimia is all about. Total retarded man hating lesbonic heretics.
If you want your child to become a drug addict then commit suicide send them to university.
Google Lindsay Sheppard listen to the recording.
Pathetic communist teachers at it again.
#139 I don't really like TO on 11.24.17 at 10:02 pm.
Me + Wife in early 30’s in TO.
Income: 87k + 55k.
Do your own % calcs.
Per the stats I guess we are above average. Sure don’t feel like it, but I guess its that mentality which helps us save. Renting for life by the looks of it.
See what I did there? And Ontario increased its income tax rate yet had a shortfall in income tax revenue to projections despite a growing economy and employment levels….
#141 Ace Goodheart on 11.24.17 at 10:07 pm.
1% don’t pay tax. Middle class pay tax. The 270,000 people you refer to are middle class. Upper middle class but middle class all the same.
1% will never pay tax.
Well, since it is Stripper Night at Greaterfool, I will open the kimono and show the Full Monty.
I am probably a case study in how tax disincentive for productivity works. Prior to the past year, I worked about 1.5 FTE of a doctor job. The extra 0.5FTE was stressful work at night that was very hard to fill. So, I did it for years. I figured that it was a need to be filled and that I should make hay while the sun was shining. I am glad I did because the money I socked away gives me more options now.
I didn’t mind paying my fair share of tax actually, but it is now getting punitive to work both from taxes and the hostile public view of people who work and make that much money. So, I stopped doing the unpleasant work this past year. I now work about 1 FTE. Along the way, my wife had to quit her career because my hours we so erratic and we have kids to provide stability for. I am the main income earner, but she works as hard as I do both doing work for my practice and keeping our household running. We are all happier that I work less now. It has left a gap to cover at the hospital, but not my cross to bear anymore – I did my share.
Cue the bad music and flashing lights. I pulled out my tax filings and matched them up as best I could.
Gross clinical income:
Tithe to the University I work with: 35K.
Net business income including investment returns: $663K.
Corp Tax Bill: $106K.
I pay us a combination of salary and dividends from what is left in corp. I made max RRSP contribution (spousal of course). Household personal tax bills for 2016 were 182K.
So, on earnings of about 700K after overhead, we paid $288K income tax (41%). Add in the Ontario government OHIP clawback and University tax and it was $348K (50%).
That was punitive enough for me to decrease my work since I was making.
35 cents on the dollar with my marginal tax rate, OHIP clawback, and University tax. Not worth it.
My projection for 2017: Income.
200K combined corp and personal. It is still a tonne of money and I have a great job that is much more livable.
Hope you found that as titilating as I did.
If anyone moans or criticizes about how much I make, don’t expect me to make any apologies. I trained for 15 years to land the job I have, accrued debt, and I had to be “top of my class” each step of the way. I am on the high end of doctor incomes, but also have a high stress/bad hours specialty with a high burnout rate. I and my family have paid the price for our success. We have decided to stop that nonsense.
My wife and I have already discussed it and if this Trudeau crap continues after the next election it is a signal that the public likes the current direction and wants more. We have the options of me going part-time, retiring, or going to the US depending on what the environment there is like. We don’t want to be caught with the last ones crowding the exit. I honestly will likely continue to practice for love of medicine aspect of it for many years. I am just not sure where and whether I’ll continue to jettison the less pleasant aspects of my practice.
I worry for the future of our country if we continue down the current path of recklessly spending and taxing “the working wealthy” to death. It seems nice on the surface, but the reality is that incentives affect human behaviour. If we provide too much incentive to produce the minimum needed and punish excess productivity in others, then the outcome is predictable.
#143 MSM-Free Zone on 11.24.17 at 10:18 pm.
#107 bring_it_on on 11.24.17 at 8:33 pm.
“….We are OK with paying our taxes provided it goes to social programs, education, health care, the CBC, funding for research, the arts, etc. i. e. things that help the social fabric and can spur new technologies. I am less enthused with T2’s recent moves of wasteful spending… and am becoming more disillusioned with him as time goes on……”
I gave t2 a chance to distinguish himself from the last band of arrogant, self-serving, two-faced Harpocrites.
Looks like 2019 is fast becoming a year of rinse-and-repeat.
#144 akashic record on 11.24.17 at 10:30 pm.
I worry for the future of our country if we continue down the current path of recklessly spending and taxing “the working wealthy” to death. It seems nice on the surface, but the reality is that incentives affect human behaviour. If we provide too much incentive to produce the minimum needed and punish excess productivity in others, then the outcome is predictable.
Family Gross Income – 220k.
Hmm, should I wait til 2019 and see if T2 is ousted.
1. Leave as non resident.
2. Pay 25% with holding tax.
3. Get Expat health insurance.
and come back after 2 years if sanity is restored?
Here’s my income for 2016.
Income Tax deducted – 16,984.
EI Premiums – 955.
As someone else mentioned – this does not include the 13% GST/PST on most goods purchased.
Wished that my taxes were lower. Could have saved some money to help others or even help myself.
#133 Adrian on 11.24.17 at 9:43 pm.
Read about Dr. Richard Clarke Cabot Cambridge-Somerville Youth Study. forget that Smiths invisible hand.
#132 Dan. t on 11.24.17 at 9:38 pm.
It’s always like this any time Garth asks us to give some sort of personal statistic. So take it all with a bit of a grain of salt.
It’s like a dating website. All the guys list their height as 3 inches taller than they are and all the women list their dress size 3 sizes smaller than they are.
Why would anon people do that? & # 8211; Garth.
#151 Leaving this country on 11.24.17 at 10:56 pm.
We are two professionals in the 1%
My income $256,882 – line 150 –
Taxes paid – $84,663.
Spouse’s income $161,042 – line 150.
Taxes paid – $29,891.
Wife’s taxes got reduced due to child care, RRSP, and capital losses offsetting capital gains.
Her corp $165,000.
Taxes paid $18,905.
So total income of $581,924.
Taxes paid of $133,459 not including property taxes, sales taxes, CPP & EI.
2016 was a low rate of taxes due to some capital gains. We don’t distribute any of the income from the corp and maximize our RRSPs.
With the attack on small businesses and increase in tax rates we are leaving Canada in 2018 and moving to Singapore. We’ll pay no more than 20% and get all the benefits that we do in Canada.
Interesting case. Thanks for the full monty :)
Canada is certainly going further down the path of taxing the working wealthy and in turn, more and more will cheat the system. Cheers to you sir.
I live overseas in a non tax country and the more I read here, the more time I’ll try and stay put.
Let me tell you that I fully understand your situation.
I am in the situation as you are but in another province.
MD FRCSC having worked all my life to be where I am right now.
People have no respect for us in this province and our ‘big’ income is always in the news.
75K in business related expenses (rent, secretary and tech salaries, etc.)
Taxes paid more than 300K.
You bet the liberals can go to hell and everyone who thinks that we are not ‘worth’ our ‘big’ renda.
I work part time 4 days a week and as soon as I reach the 5M portfolio this will become 2 days a week and once the 7.5M is reached, hasta la vista baby ! screw ’em !
#142 Loonie Doctor on 11.24.17 at 10:16 pm.
I appreciate the work you do and how detailed your post was. Just want to clarify a few things since this topic was front and center on our blog for a month straight earlier this year.
1) Canada does not have an “eat the rich”, or “eat the rich doctor” mentalidade. T2 was only elected because of the hate Harper crowd of morons and because he promised legalized weed for potheads. Now we are stuck with him and his stupid policies (witness the backlash the Liberals received with their pathetic tax changes earlier this year).
2) Schooling and debt do not mean anything anymore. Hasn’t since the 1990’s. We have lots of Phd’s with tons of debt and schooling working at Starbucks. Studying in med school is a privilege since post grad employment is guaranteed.
3) Something not mentioned very often is the chronic underemployment that exists out there. A lot of employment is contract/temporary work. A lot of people don’t have enough hours with one position and have to cobble together many jobs to make it work. The ability to work as many hours as you can is a positive, not negative.
4) We had a lot of great posts on here about the realities of starting up practice in the US. Some positives, but lots of negatives as well. If there is nothing more frustrating/frightening, it’s the thought of losing our best specialists/doctors to the US. I feel that threat is the origin of a lot of perceived hostility towards our MD’s.
#156 renting in Surrey on 11.24.17 at 11:14 pm.
150,000 gross income.
45,000 income tax + CPP + EI.
Self employed, rent, single, kids flown the nest, max out RRSP, max out TFSA.
#158 Oakville Owner on 11.24.17 at 11:21 pm.
Just under making the “Sunshine List” three years in a row. Married up 13 years ago to a smart, beautiful woman who holds her own in the private business world.
Sadly every last gross penny I earn and then some goes to cover the family tax bill!
Garth - Next meeting we need to work on legal tax avoidance options!!
#159 Steve White on 11.24.17 at 11:22 pm.
Here’s an observation. Our governments, all levels, waste tax dollars that both the hard working wealthy and hard working poor pay. Everyone has a story of government waste. If households were run like this, collectively we would be in trouble. It’s always different when it’s not their money.
The politicians are very skilled at framing an argument of us vs them. It divides the commenters of this blog. Perhaps the discussion should change to accountability for those in charge. Perhaps politicians with equal lack of financial knowledge should be put under the microscope instead of a left vs right argument.
#160 Fake News Again on 11.24.17 at 11:24 pm.
“There are some 270,000 people in Canada who earn over $230,000 a year, in the 53% tax bracket. That’s 0.62% of the population. The average tax they paid (before the latest increase) was $160,000. Together this tiny group of people (average age, 52) earn about 10% of all the income but pay 22% of all income taxes. Seems like a good deal for everyone else, but the prime minister says it’s not enough.”
The Govt in waiting – Federal or Provincial – that says:
“We are going to CUT the size of Govt by 15%” & # 8211; will win by a landslide…..
#161 Ace Goodheart on 11.24.17 at 11:26 pm.
Yours truly: 249,861.00.
Better and more responsible half: $72,000.00.
Taxes: Well you figure it out. We could support a small country with what T2 takes from us.
I earn more than 1/2 my income from dividends, which helps. The other slightly less than 1/2 is from running right now two businesses (used to be three).
I like to juice my returns. There is a way of doing that.
At any rate, just got back from the Christmas party. Way way way too much red wine. Drink tickets only good till 11? WTF Means you have to power drink, which is so stressful. I would rather just maintain it and plateau. Power drinking is so 1980s.
$70 + $30k salaries for me and my wife with approx $30k in tax. Business income of $210k with approx $30k in tax. Total $310k of which we paid $60k in tax. Directly created jobs for others who paid a combined $240k in income tax as well.
$30470 in tax +EI and CPP.
apparently my co workers say you get a lot of tax back if you work a lot of overtime, i’ve never seen it happen.
Why would anon people do that? – Garth.
Because they are anonymous. Nothing can be verified. You can get a reaction out of others, maintain your online persona/reputation, feel better about yourself and have fun doing it I guess? Basically troll.
That said, there are a lot of posters are truthful and that’s why I have been reading for years.
#160 Fake News Again on 11.24.17 at 11:24 pm.
“We are going to CUT the size of Govt by 15%” – will win by a landslide…..
-Along with a corresponding cut in services too right?
#165 TurnerNation on 11.24.17 at 11:50 pm.
Yearly gross salary 1000 x my IQ haha. Plus balanced portfolios though mainly in TFSA & RRSP.
I pay whatever TurboTax says I owe or not. Haven’t yet been audited. Software works.
185K Income, 175K of it from overseas.
73K Overseas tax.
5K Canadian tax.
Joys of being a deemed resident for tax purposes of two countries.
This is my 19th year of work overseas. I’ve never dodged Canadian taxes, ever. Been audited by CRA 3 times, been to tax court once, almost made it there twice but CRA wisely threw in the towel on another unwinnable case.
Its now really hard to see that money go out when it is squandered by an arrogant government (watched Parliament question period lately?) that seems to be hell-bent on turning a functioning country into a quasi-worker’s paradise. Having long worked in former Soviet-bloc countries, I know that doesn’t work out so well…
Had I been smart like some of my co-workers, gone non-resident and domiciled in Panama, I’d be retired by now.
I’m concerned about my kid’s future with the anchor chains of debt that T2 and Wynne are wrapping around his young neck.
$158K Gross Family Income.
$23K Net Income Taxes.
Household income about $300K and paid over $150K in imcome tax, adding gas, property and other municipality taxes, another $20K…..more then half of our income, I’m glad I subsidize the blog dog complainers (sarc off)
My income is below the poverty line and I’m not proud of it. I get 28,500, pay no taxes but 38% percent of it goes to pay tuition and university fees (I’m a graduate student). I have been in this financial situation for longer than I planed, and despite all my expenses, I have managed to stuff money into my TFSA (don’t live in a basement by the way). Hopefully my future will be better, thanks to this blog I have invested my savings and now I embrace calculated risk.
There are a lot of people struggling to make ends meet but the goverment policies won’t change their situation. People don’t want hand outs, just opportunities to thrive but unfortunately there are no many in this country.
This past summer I went to the General Governor residence and was told that it was the property of all Canadians (but I’m sure if I won’t be allowed to spend a couple of nights there). Staff showed visitors how oficial dinners were organized and I was impressed by the lavish spending. So, as it have been said here, the goverment has a spending problems and no amount of taxes will be enough to support its ‘promises’.
I have been following you for years now and i think, you are stupid.
Me desculpe por isso.
Obrigado por seu comentário.
1) I hope that you are right with your point #1. I was around when the “eat the rich” and “eat the rich doctors ’cause they take no risks” stuff was coming out in the steerage section of this blog. It was real, but who knows if it is just a vocal obnoxious minority or not. It is hard to know what will happen with the next election given the various spin the media takes on things. The Liberals are a pretty slick media machine. Our government in Ontario has been pretty openly hostile with us for a while. I never thought that the Ontario Liberals would get re-elected with their gas plant scandals, ORNG, eHealth, the list goes on. But they did. They are already ramping up their vote-buying schemes.
It is interesting. The people that I deal with on a day to day basis are generally quite grateful and honestly very rewarding to work with. Strange things happen to people when they are thinking about groups of people rather than the individuals that they know. I honestly cannot remember ever seeing my colleagues as demoralized as they are now after the last few years of rhetoric from our provincial and now federal governments. It alarms me because it is a group of people who are generally resilient, work hard, and care about what people think.
2) Medical school and practicing medicine is a privilege. Not just for the guaranteed job, but for the actual work that you get to do. It is an earned privilege, but one nonetheless. I feel bad for PhD Starbucks workers. They obviously took a risk investing in an education with limited job prospects and it didn’t work out well for them. I do understand the intrinsic benefits of getting a higher education both to the individual and society. However, there are some more directly employable degrees than others and people should consider that before committing to them. Getting a college diploma in an employable field after their University degree is a better fiscal decision for most people. It is what my dad in the 70s and my wife did in the 90s. It is nothing new. We all make our choices about what education to invest in – some invest for the intrinsic benefits and job prospects. Others just for the intrinsic benefits, I guess, or they didn’t plan ahead.
3) As I mentioned, I was happy to do the extra work and make hay while the sun was shining. However, it was available because it was undesirable work for the vast majority of my peers. Many literally thought I was crazy to do it actually. I stopped because of the shift in taxation past a proverbial line in the sand for me, my advancing age which affects my ability to work those hours, and also because there are now some younger people in need of the work who do have the constitution. Medicine is interesting in that you can work as much as you can in some fields, but in others you are limited by government caps on hospital resources. I feel bad for the surgeons who can’t find work and for the patients who are left waiting simply because the OR time has been capped and they don’t have one of the diseases the government has targeted dollars at. We have under-employed areas in medicine which is shocking given the demand.
4) I actually don’t think practice in the US is any better at present. They have similar issues. Just substitute government for insurance companies and voila – same frustrations. I have watched the pendulum swing back and forth. When I went to med school, about 1/3 of graduates were going to the US because it was clearly better there at that time (1990s). We made up a lot of ground and I think Canada has been a far better place to practice from about 2005 to 2012. We have been swinging back the other direction since then. I am just keeping my options open because Trudeau seems to be pushing the pendulum pretty hard. I think the threat of losing established physicians like me is quite small. I have roots here. I am more likely to cut back to just work enough to enjoy what I do than to leave. I think most threatening to leave are making empty threats. My wife and I happen to like the environmental climate in the US, but it would still take a lot to make us uproot. I worry more about those starting out who have fewer ties. If people worry about them leaving, hostility is definitely not the answer.
#132 Dan. t on 11.24.17 at 9:38 pm.
Good to see all blog dogs are are taking home 180k, but… “ya know, I only work like, 2 days a week”…
I thought the average family income, based on stats can was around 75k in BC, 85+- in GTA and 90+ in Alberta. Or have things changed?
I guess things have changed in Canada. You are now a loser if you don’t make over 100k? Agradável. But then again, with 900k house prices, I guess that is the only way.
I was wondering, are a homeowner?
$396,996 gross (wife and I)
$90,097 has tax paid.
But this was an anomalously low tax year due to a much larger than typical rrsp contribution.
I am thinking on similar lines as you #159 Steve White…We have these political parties fighting back and forth, putting on a show for “us Canadians.” Time to bring in a new system and less time putting on a show which is getting boring.
Google “Could Technology Remove the Politicians From Politics?” and “Reform Political System.”
A start in the right direction and the seed has been planted.
We have laws against the things that are wrong for us but we don’t have laws against debt/credit, a crime against themselves and now the country.
#175 Lost. but not leased on 11.25.17 at 12:53 am.
A while back, I had an interesting experience.
Via an ailment, I scheduled an appointment with our family MD.
Long Story short…my own MD had to take time off for a medical condition.
I then had (2) different “locum” replacements.
My “diagnosis”…ALL 3 MD’s gave me different diagnosis’. (.)
Family of 1 retired boomer. 2017 disclosure for your pleasure. I wish Trump, Trudeau and Morneau had the courage to do the same.
$26,500 indexed pension incomes (no OAS yet)
$43,000 RIF/RSP withdrawals (budgeted to age 90)
$ 5,500 Dividends from nonreg investment a/c.
$ 4,700 Capital gains from nonreg a/c (varies)
$79,700 Gross Income.
$14,400 Fed & Prov income tax (no EI or CPP)
$ 3,800 Property tax (rising @ 5% per year)
$ 2,300 GST (guesstimate)
$ 200 Carbon tax on natural gas bill (rising fast)
$20,700 Direct taxes paid.
I have to just make sure I don’t die with large RIF and RSP balances.
#177 Pretentious Hipster Bucycles on 11.25.17 at 1:00 am.
Between my wife and I we pulled in approx $175k.
Our total tax bill at year end was $10k, not including tax deducted from my wifes T4 income of $50k.
This also excludes what the company I have owbership in paid in corp taxes.
Income: acquired by years of education, toil, difficult decisions and hard work.
Taxes: stolen from me on a whim by people who declare I’m a criminal while idolizing the tales of Robin Hood.
Marginal rate: who cares, when can we vote these socialists out?
Line 150 = $102,675.00.
Line 260 = $91,946.00.
Line 435 = $21,260.99.
Average rate on net income = 23.12%
Sorry, brain fart.
The trouble with socialism is eventually you run out of other peoples money.
#182 Lost. but not leased on 11.25.17 at 1:18 am.
FYI: Legal Notice of “Bragger’s Tax”
Moroneau and Turdeau will soon table a “Bragger’s Tax” for people that claim annual income over $100,000 on blog sites.
Blog Host will be obliged to turn over required info to CRA.
#149 NoName on 11.24.17 at 10:50 pm.
That is absolutely fascinating! Obrigado! I found the following Freakonomics podcast about it:
I find it especially interesting how the researchers conclude that summer camp settings encourage delinquent behaviour, and the more you go the stronger the effect!
The other two theories the researchers proposed to explain the negative effect were interesting, as well:
“Another theory has a lot of traction to it: that the kids in the program developed a dependence, or a sense of need, so that when the program ended they felt like something they needed wasn’t there or something they valued wasn’t there. What happened was people got a mentor and then at a certain point, they lost the mentor.”
And, “…a third hypothesis theory, and this was really my mom’s favorite theory, though she died before she could test it. But her suspicion was that part of what was happening was fairly privileged mentors, who had values and expectations that well suited their opportunities transferred — not really intentionally, but by osmosis or by modeling or by conversation — those values and expectations to the kids.
“Part of why my mom thinks this is an important hypothesis is she thinks psychology and sociology in general pays too little attention to what explains how people make the decisions they do, why they take certain considerations as reasons and not others. She thinks that process of teaching people what to consider, a reason or a value or a goal, is deeply important to explaining behavior.”
Now there’s a hot-potato idea, that values and expectations suited to one class background may not be well adapted to another…
#184 Dom in Switzerland on 11.25.17 at 1:47 am.
285K CHF and 36K in taxes plus 900 a month for health care for the family of 4.
#185 Paid too much on 11.25.17 at 1:49 am.
Garth – 2016 results.
Gross income (just me): $424k.
Taxes Paid: $129k after refund.
2) Always too much.
Total income $98k.
Love the blog GT.
#188 SHiTTy of vAn-gOObEr on 11.25.17 at 2:44 am.
Mr & Mrs Delusional.
Total Household income.
Self employed, but employ many.
Working my a$$ off, grey hairs arriving.
There’s no shame in being rich.
There is a shame in a country with growing wealth disparity. Obviously a feudal style disparity where one ruler owns 99% of the wealth isn’t great for standard of living and communist style where everyone gets the same regardless of effort doesn’t work either. So what’s the goal? How does something around the 50/60s era sound when the middle-class was the largest it’s ever been?
That’s 0.62% of the population. The average tax they paid (before the latest increase) was $160,000. Together this tiny group of people (average age, 52) earn about 10% of all the income but pay 22% of all income taxes. Seems like a good deal for everyone else, but the prime minister says it’s not enough.
It’s telling that the problem you see is that the wealthy are paying 22% of taxes against 10% of income and NOT that 0.62% of people are making 10% of all the income. Which one of those is more disproportionate?
Do the affluent pay their fair share of the tax load?
Compared to historical precedents? No. I’m sorry, it’s hard to hear and paying taxes sucks. But no income inequality is getting worse and trickle-down ‘job creator’ voodoo has proven not to work since Reagan. There is research showing that redistribution is the best method. Look at Nordic countries. Yes their taxes are high (similar to Canada in the 60’s) but they beat us on almost every single quality of life indicator. If that’s not important to you then be honest and simply say “I’ve got mine, I don’t care if our average quality of life is below what it could be, I want to keep more of mine”.
Just admit that you don’t care about low-income quality of life and don’t lie about some libertarian fantasy where cutting your taxes will cure it. That’s intellectual honesty you can reason with. It’s a perfectly fair argument to say you think that today’s level of wealth equity is ideal. I think this isn’t as fair as it could be and I’m willing to pay a bit more.
I’d rather it not be spent on boutique programs with high administration but direct programs like basic income etc.
What did your household earn last year, and what did you surrender in tax?
Earned $210K, handed over about $58K.
Gross 2016 family income (2 kids): 172,000.
Total tax (after all deductions etc): 22,000.
Looking at it, that sounds like we have lots, but for some reason I still don’t feel like we have anything left. We don’t buy stuff, we rent instead of own and still have nothing left to save. Time to do some deep reflection…
I think if I said how much I made this year, we’d have people here laugh or cry, and the CRA would establish a special team to chase me down. RI MUITO.
That said, hold your horses, the year isn’t yet and I haven’t quite figured my tally for the tax man. Needless to say I’ll be spending the christmas holidays reading an entire shelf of books on tax avoidance, catching up on Canadian tax treaties with certain Islands, trust structures, updating myself on OECD roadmaps and narrowing down which offshores have near 0% corporate tax… or as the professionals call it “Asset Protection Planning”.
I hesitate paying $500/hr per person to hire the top team at KPMG to figure out the best strategy for me, since they have messed it up several times in the past couple of years for some of their top clients. If anybody has some top notch up to date resources on Canadian tax avoidance, I’ll pay that person a sizable sum in Moneros [anonymous crypto currency, for those wondering]. Be sure to post your receive address along with your post. The amount paid will depend on the quality of the material posted, and whether I already knew that info or not. Dont worry, I’m not a cheap ass, but dont bother posting content that you simply find with a few google searches, I can do that myself.
BTW, since my last post here earlier this week, a large chunk of my crypto portfolio is up 20% (again). Não acredita em mim? Look up the price chart of Ethereum for the week it just went from $360 to $460 USD.
I honestly shake my head at all you high intellect people in this blog, making an amazing $200K+/year as high networth professionals, successful business people and no doubt executives of large corporations. You spend so much time trying to figure out how to operate a diversified portfolio to beat the indexes and you all celebrate if you make 10-15% per year on your taxable investments. I mean seriously, I’ve met teenagers now day trading crypto currencies making 3000%+ returns per year. & # 8230; year after year!
How many more years of 1000%+ returns per year will it take for people to finally start researching and understanding the implications of deflationary currencies without central authorities that can be completely anonymized and traded on decentralized exchanges that can’t be shut down? I will say it again. Crypto Currencies are the biggest transfer of wealth we will see in our generation.
Look, I’m not going to try to pay 0% taxes. I value social services like police, firemen, mostly free healthcare services, cities that are quite safe to live in, with decent infrastructure and overall a culture of people who are for the vast majority quite nice. But, I will also pay what I feel is my fair share, which excludes things like the previous government’s funding of wars, F-35s that cost billions, additional billions in tax subsidies that have propped up housing making it less affordable in the long term, etc. I’m going to weight the good against the bad, then come up with what I feel is a fair amount to pay.
BTW, if the CRA is reading this, don’t even bother.. I’m behind 3 proxies across 2 continents from a VPN paid with anonymous crypto currency, using a ToR browser through the I2P nework through a free wifi from a local cafe without cameras installed. I will admit, latency is a bitch, but you’d have better odds finding Edward Snowden.
I think if I said how much I made this year, we’d have people here laugh or cry, and the CRA would establish a special team to chase me down. RI MUITO.
That said, hold your horses, the year isn’t yet and I haven’t quite figured my tally for the tax man. Needless to say I’ll be spending the christmas holidays reading an entire shelf of books on tax avoidance, catching up on Canadian tax treaties with certain Islands, trust structures, updating myself on OECD roadmaps and narrowing down which offshores have near 0% corporate tax… or as the professionals call it “Asset Protection Planning”.
I hesitate paying $500/hr per person to hire the top team at KPMG to figure out the best strategy for me, since they have messed it up several times in the past couple of years for some of their top clients. If anybody has some top notch up to date resources on Canadian tax avoidance, I’ll pay that person a sizable sum in Moneros [anonymous crypto currency, for those wondering]. Be sure to post your receive address along with your post. The amount paid will depend on the quality of the material posted, and whether I already knew that info or not. Dont worry, I’m not a cheap ass, but dont bother posting content that you simply find with a few google searches, I can do that myself.
BTW, since my last post here earlier this week, a large chunk of my crypto portfolio is up 20% (again). Não acredita em mim? Look up the price chart of Ethereum for the week it just went from $360 to $460 USD.
I honestly shake my head at all you high intellect people in this blog, making an amazing $200K+/year as high networth professionals, successful business people and no doubt executives of large corporations. You spend so much time trying to figure out how to operate a diversified portfolio to beat the indexes and you all celebrate if you make 10-15% per year on your taxable investments. I mean seriously, I’ve met teenagers now day trading crypto currencies making 3000%+ returns per year. & # 8230; year after year!
How many more years of 1000%+ returns per year will it take for people to finally start researching and understanding the implications of deflationary currencies without central authorities that can be completely anonymized and traded on decentralized exchanges that can’t be shut down? I will say it again. Crypto Currencies are the biggest transfer of wealth we will see in our generation.
Look, I’m not going to try to pay 0% taxes. I value social services like police, firemen, mostly free healthcare services, cities that are quite safe to live in, with decent infrastructure and overall a culture of people who are for the vast majority quite nice. But, I will also pay what I feel is my fair share, which excludes things like the previous government’s funding of wars, F-35s that cost billions, additional billions in tax subsidies that have propped up housing making it less affordable in the long term, etc. I’m going to weight the good against the bad, then come up with what I feel is a fair amount to pay.
BTW, if the CRA is reading this, don’t even bother.. I’m behind 3 proxies across 2 continents from a VPN paid with anonymous crypto currency, using a ToR browser through the I2P nework through a free wifi from a local cafe without cameras installed. I will admit, latency is a bitch, but you’d have better odds finding Edward Snowden.
#194 Randy Randerson on 11.25.17 at 3:43 am.
#140 Still here on 11.24.17 at 10:06 pm.
See what I did there? And Ontario increased its income tax rate yet had a shortfall in income tax revenue to projections despite a growing economy and employment levels….
…and Trudeau is still trying to figure out what happened.
Total Income $152k.
Tax paid $44K (NL)
So, 30% in personal income taxes alone.
Lived for brief periods both below the poverty line and as a 1% – but I have no incentive to spend half of my life at work to support a government.
My tax avoidance strategy is to stop working at a highly-taxed full-time job, get my time back, and live a simpler healthier life.
#142 Loonie Doctor on 11.24.17 at 10:16 pm.
…My wife and I have already discussed it and if this Trudeau crap continues after the next election it is a signal that the public likes the current direction and wants more.
You can bet on more down the road. Canadians got stupid, Trudeau’s eat the rich platform earned him a majority.
You’re just as screwed if Jagmeet gets in, maybe even more so.
#198 Leichendiener on 11.25.17 at 6:45 am.
Fair question to know your audience.
From T4: $142,600 employment income. $39,000 income tax.
I am employed by a private company.
#142 Loonie doctor.
The reason doctors make a bundle is because of the life, social and mental sacrifices.
Let’s examine 2 different situations:
The good doctors earning $700k.
That income probably didn’t start until he was 45 maybe 50. He didn’t finish school until he was in his 30s. Incurred huge student debts, probably didn’t have kids until his mid 30s. How would anyone expect him to be able to retire at 65 if he didn’t make big money?
Now let’s look at a 20 year old kid who gets a job with TTC. If he’s smart he could be retired by 50 with a pension for life and a couple of million invested.
Income taxes for 2016 for the entire household.
Taxable Income: $187,925.
Total payable tax: $46,722.88.
So almost 25% from my income tax.
#202 Sadly we don’t know on 11.25.17 at 8:00 am.
Unable to know if considering taxes of all kinds. I’ll accept your following statement which really hurt when I read it:
“To finance this, the average family pays about 43% of its income in taxes of all kinds”
When my sole proprietorship was audited by CRA about thirty years ago, I quickly established that I adhered to the amazon model of growth, with low earnings. It appeared that I had understated my expenses and overstated my earnings so the correspondence and phone calls ceased as quickly as they had started and I was put on a do not call list. I was surprised that they never sent some food and warm clothing, maybe they are indeed heartless. I packed it in shortly thereafter to make things for me, not potentially money for me and CRA.
On my $100/month CPP I pay no tax. My wife shifts pension to me from her TPP and CPP and with her OAS we net $4000/mo, of which $2300 is the TPP. When she substitute teaches, she loses 26% to additional tax at that level of income, is my understanding.
The tax I hate is the forgoing of interest on her savings in order for Corps to be able to buy back shares at low interest rates to create fake stock value increases, shored up with the FED Reserve buying every daily dip greater than 1%.
I don’t like the idea of owning stock, with pay level disparity within Corps what it is, along with crap job security and benefits for the workers and golden parachutes for the corporate suite. No one deserves a thousand times more per day than me when I am productive.
So I am stuck with low to no interest, and as much sympathy for my plight as Garth gets for his plight from the masses.
Earnings astronomical…..flat 15%…..no testical squeezing social deductions….
No sales tax on anything. Sun shines every day. Cost of living is ridiculously low. No way I’d ever live on Canada. Our stock markets up nearly thirty percent…..and the Canadian dollar is falling. Why are you there? If you have a four year degree you’re guaranteed wealth here.
Household income $88,656 Tax $9,696 – 10.9%
“Not only is Bermuda’s beneficial ownership register not public, it is also not up-to-date. As the government of Bermuda acknowledges “the current requirement is for such companies to file beneficial ownership information at the time of formation, with no obligation to provide an update”.[1] While proposals have been developed to require companies to keep up-to-date records, for examples when the ownership of the company changes, these are not yet in force.[2]
Rather than misleading the British public about its efforts to tackle tax haven secrecy, Bermuda should stop lobbying the UK government to oppose transparency and recognise that this transparency is vital if it is to clean up its tarnished reputation.
David Burt, the Premier of Bermuda, misled listeners on BBC Radio 4’s Today programme about Bermuda’s efforts to tackle the corporate secrecy that enables tax avoidance, evasion, corruption and money laundering this morning.
In response to the Paradise Papers revelations, he was asked “Your register of ownership is not public, it is secret,” Mr Burt replied “Our register of ownership is public and not secret. The fact is that Bermuda has known who the beneficial owners of our companies have been for over 70 years.”
Isso não é verdade. Bermuda does not have a public register of beneficial ownership.
In fact the only people in the UK that can access Bermuda’s beneficial ownership registry is the UK’s National Crime Agency, on request – to which Bermudan authorities usually have 24 hours to respond to.
In May 2017, researchers and reporters discovered that the FCC’s public comment process was being corrupted by the submission of enormous numbers of fake comments concerning the possible repeal of net neutrality rules. In doing so, the perpetrator or perpetrators attacked what is supposed to be an open public process by attempting to drown out and negate the views of the real people, businesses, and others who honestly commented on this important issue. Worse, while some of these fake comments used made up.
names and addresses, many misused the real names and addresses of actual people as part of the effort to undermine the integrity of the comment process. That’s akin to identity theft, and it happened on a massive scale….
The numbers don’t matter.
We’re taxed way too much, period. There is no “fair share”, because there nothing fair about it in the first place.
The government, and the mental midgets that run it simply squander way too much money on completely useless programs and pseudo-charitable politically driven handouts.
There is no end to the levels of taxation we will face as long as we live in the socialist welfare state. The government has zero restraint when it comes to giving away YOUR money. We will NEVER see tax reform of any sort. There is only one taxation direction: up, uP, UP!
The government needs to STOP SPENDING. AGORA!
Just cut it out. CUT-IT-OUT! Know what I mean?
In the meantime, when it comes to your own tax payments: avoid, avoid, avoid. Then avoid some more.
Taxation is theft.
Se cuida.
We are retired middle class workers who have been paying more and additional income taxes for the year during spring tax time in addition to monthly tax deductions. We pay at least 43 percent or more. Don’t mind it as long as other folks are paying their honest, correct share also. I see many who don’t. For example, many Albertans have cottages in BC. They do not rent them but use them purely for family recreation. They write off the mortgages or wrap the mortgage in their business loan to write it off. This is grossly unfair as many other folks abide by the CRA regulations when owning recreational properties. Some of these folks who write off their recreational properties use a numbered company as the owner for tax purposes. I agree when the Liberals are trying to amend these practices. Why should these guys from Alberta get the tax breaks and others don’t?
#209 After Communism on 11.25.17 at 9:40 am.
(As a brief aside, the quickest counter-argument I know to the “invisible hand” – the idea that self-interested behaviour *must* result in a pareto-optimal outcome – is the prisoner’s dilemma. Rational self-interest can easily result in sub-optimal outcomes for everyone, which is probably why humans evolved to be pro-social rather than rational.)
Canada’s Christian culture had limited government and liberty because the invisible hand (God) works with decentralised family decision making and extended family social cohesion, not a central powerful single payer making all the decisions and taking half the incomes, so that even a simple knee operation is considered impossible.
Thus your pareto-optimal concern is true only in an anti-Christian, secularist, multicultural milieu. Canada is obviously being managed and justified, in a communist centralised way of thinking to control the competing groups, which are Nash, and worse, other groups, which are anti-pareto (meaning smashing everything to hurt their not-in-group).
For example Trudeau is making it look like $40 billion of housing is for everyone, although now brazen enough to openly admit it is 25% for one in-group: women pitted against another in-group: men, and I think for other in-groups, too.
Mobility (if you’re up for it) can be exceptionally valuable. We saved substantially with 2 professional salaries in a zero tax country and a bare bones lifestyle for 7-8 years. Immigrated to Canada when our kids got to school age. We expect to save very little additional money for the next several years, because with the high taxes it makes sense for my wife to spend time with the kids in their formative years rather than work. Canada is an exceptional country to raise children, and we are grateful for the opportunity. However at some point kids will go to the US for university and onward in life. Then it will no longer make sense to pay these high taxes. I think my wife and I might again move to a low tax country at that point.
#192 GeniusMoney on 11.25.17 at 3:25 am.
Meh I’ve stayed out of the cryptocurrency debate because it looks like a fad to me, like pogs or baseball cards.
There is some irony in your post:
“You spend so much time trying to figure out how to operate a diversified portfolio to beat the indexes and you all celebrate if you make 10-15% per year on your taxable investments. I mean seriously, I’ve met teenagers now day trading crypto currencies making 3000%+ returns per year. … year after year!”
-There it is. The high earning professionals we have on the blog are in that position because most moves they make are calculated using risk vs reward.
1) When someone has spent years building a business or profession, the last thing they want is to waste it all on something they don’t understand.
2) Anyone over the age of 20 realizes that if something sounds too good to be true, it usually is. 300% profit in a few months is exactly that.
3) It’s because teenagers living at home are trading crypto that these professionals are staying away. When the mix of traders is the inexperienced, sketchy gangsters, tax cheats, doomers, and massive speculators. Experience says to stay away.
“How many more years of 1000%+ returns per year will it take for people to finally start researching and understanding”
-Nothing goes up forever and no one cares about Estats.
“BTW, if the CRA is reading this, don’t even bother.”
#212 Brett in Calgary on 11.25.17 at 9:58 am.
Two income earners:
It’s a balancing act between professional opportunity, tax levels, cost of living, quality of life and social values. No one country has them all (lived in 3 regions so I have first hand experience). Different things rise in their importance at different life stages. Flexibility and an open mind allows us to make the best of each place depending on circumstances. Multiple passports are a valuable asset. Except a US passport, which taxes you on global income even after you leave the country. Thankfully the Canadian passport doesn’t have that issue (for now).
I maintain, when the government proves it is being fiscally responsible with my tax money, I will be responsible in my reporting.
80000 gross + 9500 CCB (kids) – 10000 CPP + Taxes (self employed me and the wife working in our two year old business). also 7000 in property taxes (house + commercial building).
#216 For those about to flop. on 11.25.17 at 10:22 am.
This howmuch article is from earlier this year, and although about America the poll seems to be attracting a different crowd and so I will refrain from embarrassing myself with my Pink Posts and just contribute this.
Have a good weekend…
“Believe It or Not – the Richest Americans DO Pay Most of the Federal Income Tax.
Thank God for the 1%. That much-maligned minority, the richest percent of Americans, pay 39.5% of all Federal Income Tax. That is one of the most eye-catching figures in a study released by the Tax Foundation earlier this month. To put that percentage in absolute figures: the richest percent of American taxpayers pay in $542.64 billion of a total take of Federal Income Tax of $1.37 trillion.
As this data visualization clearly shows, the top 1% pay much more than taxpayers of any other income level.
It is almost double as much as the next bracket of top incomes: those earning the 2% to 5% of the highest wages in America pay 20.5% of all Federal Income Tax. Or in absolute terms: $281.51 billion.
It is also almost four times as much as those whose incomes range from the top 6% to 10%. They pay 10.9% of Federal Income Tax, or $149.97 billion.
Those who earn between the top 10% to 25% of wages in America are a much larger group; yet their collective input into the Federal Income Tax is only half as much again as the previous band: 15.9% (i. e. $281.55 billion).
Those with an income anywhere between the top 25% and 50% only pay 10.5% of all Federal Income Tax, no more than $143.95 billion.
The entire bottom half of wage earners pays only 2.8% of its income in taxes into the federal coffers. In actual money terms: $37.74 billion. That is more than 14 times less than the top 1%, even though this group is 50 times as numerous.
These figures show the level of contribution to total income tax revenues by the various income levels. The Tax Foundation also provided figures for what that means for individual taxpayers in each group.
For the richest 1%, the effective average tax rate is 27.2%, meaning that well over a quarter of their income goes into federal coffers.
For the next group (up to 5%), the fiscal pressure is just below a quarter: 23.6%.
Taxpayers with incomes in the top 10% part with just over one-fifth (21.3%) of their earnings.
Those in the top 25% bracket contribute 17.8% of their annual income.
Even those up to the 50th percentile on average still give 15.5% of their annual income to Uncle Sam.
Because about 45% of American households make too little to pay any Federal Income Tax, the average percentage for the bottom half of incomes is dramatically lower – the average Federal Income tax level for this group is just 3.5%.
Nobody likes paying taxes, and all taxpayers agree that everyone who contributes to the national purse should have some say in how the government raises and spends its money. But in this debate, whose voice should be louder: that of the majority at the bottom of the income scale (who contribute the least) or of the minority of biggest contributors (who fork out the most)? Simply put, that question is the foundation of all politics in a capitalist democracy like ours.”
#217 crowdedelevatorfartz on 11.25.17 at 10:28 am.
“Can’t afford Canada. Left.
Gross Income (2016) including housing allowance: $264,000.
Net Income: $264,000.
But is it true that the sand gets…….everywhere?
#218 crowdedelevatorfartz on 11.25.17 at 10:35 am.
@#151 Leaving the country.
“With the attack on small businesses and increase in tax rates we are leaving Canada in 2018 and moving to Singapore. We’ll pay no more than 20% and get all the benefits that we do in Canada.”
With the exception of Wrigley’s Spearmint Gum….
#219 crowdedelevatorfartz on 11.25.17 at 10:45 am.
““We are going to CUT the size of Govt by 15%” – will win by a landslide…..
-Along with a corresponding cut in services too right?”
The cut in “services” is aready there due to the sloth , inefficiency and waste.
I’m particularly enjoying the appropriately named civil service “Pheonix” payroll system that is imploding.
How many beaurocrats sat in how many 1000’s of meetings pushing emails or paper back and forth discussing the new and improved system that is so bad it should be immediately scrapped?
Cut 50% of “civil” servants and maybe , just maybe the other 50% might suddenly realize how they had good jobs with great benefits and pensions that were worth keeping…..but I doubt it.
Tax increases to keep the debt bandwagon rolling right towards the cliff……
Approximately $17K income tax on $90K of taxable income.
#221 SquareNinja on 11.25.17 at 10:51 am.
Canada is a socialist country, with a tax system closer to that in Scandinavian countries than to the USA. If you’re rich, want to keep more of your wealth and enjoy the benefits of vast income disparity, it’s easy enough for you… Paradise Papers, anyone?
Personally, I’d rather give up more of my wealth and enjoy living in a more equal society. After all, my success and the success of others is attributable in a major way to the contribution of society in general and also to luck.
#222 crowdedelevatorfartz on 11.25.17 at 10:54 am.
“I have been following you for years now and i think, you are stupid….”
Call me Ishmael …..but could you be a tad more specific on whom you think is stupid?
Or is breathing and typing asking too much?
Most of the posters here pay more in taxes than I earn in a year, most are multiples of that value….
36 yo making 30k…
like Camus said.
“either commit suicide, or get a cup of coffee”
I dont think I should read these polls, they put me in a low place.
202 Asian ExPat on 11.25.17 at 8:33 am.
One word: stability. Let’s hope that people who have dual citizenship are denied re entry during the next third world coup when they come running.
Employment income $28k (about the average)
Dividends/Investment income $19k.
Realized Cap gains $69K.
Cap gain distributions $1,500.
RRSP Contribution $16k.
Total Taxes Payable incl. $2,400 CPP: $12k.
Politicians fiddle with the tax system, but that is overwhelmed by larger trends in the economy. The reality is the largest chunk of Canadian population has had little in the way of increases in real income for decades. People on the minimum wage and welfare have had their benefits frozen from time to time. In BC the minimum wage was frozen for a decade, so the wheel of inflation probably cut the wage by 30%.
So the higher income brackets are paying the brunt of the income taxes, because they are getting all of the pay increases. The unfairness is balanced however, by the governments enthusiastic use of fees, sales/property taxes and politicized ferry and hydro rates to skillfully extract revenue from those who earn less.
People are comfortable handing over 30 – 35% of their income to the government. Once you spend a working class paycheque, you are out at least 30% in income taxes, fees and GST. Studies have shown the more you tax higher income people, the more they will employ a tax lawyer to reduce their taxes down to that 30 – 35% level. For them the flat fees and other taxes are far less significant than for working Canadians.
Interesting to note there are some pretty high family incomes here that are paying about 20%, presumably by exercising RRSP and other legal deductions. I think for Canadians that are concerned about their income tax, there is a reasonable amount of legal relief, if you choose to exercise it. I wish the TFSA had been around thirty years ago.
For those who despise the cost of a civilized society, you can always leave. The moaning about government waste is a bit of a laugh for those of use who have worked for a large private sector corporation. You would be shocked at the lack of difference. You should read Kevin O’Learys first book when he sells his software company to Mattel and has to work there. The culture he describes sounds a lot like a government bureaucracy.
crowdedelevatorfartz on 11,
No. Cut the outrageous benefits like the Cctb or this stupid housing initiative. They are the real drain on revenue.
Also, cut the wasteful UN contributions. They are worthless.
Don’t think the call centre employee earning 30k/year is the problem, sorry.
So basically you come, use the educational system, health care system then leave?
One, this is a case for having Canadian passports taxed like crazy.
Two, my friends who went to the US to study came right back after they were done.
I’ll bite. Business owning 1%er here.
On the personal side:
#231 Randy Randerson on 11.25.17 at 11:59 am.
#202 Asian ExPat on 11.25.17 at 8:33 am.
Sounds like Hong Kong. Love the city, but can’t tolerate the working hours and the summer heat+humidity.
#232 Drill Baby Drill on 11.25.17 at 12:14 pm.
me; $230K, taxes $75K.
wife; $90K (DB pension), taxes $32K.
Total taxes (not including muni) $107K/year.
#233 Fake News Again on 11.25.17 at 12:15 pm.
#164 MF on 11.24.17 at 11:38 pm.
Why would anon people do that? – Garth.
Because they are anonymous. Nothing can be verified. You can get a reaction out of others, maintain your online persona/reputation, feel better about yourself and have fun doing it I guess? Basically troll.
That said, there are a lot of posters are truthful and that’s why I have been reading for years.
#160 Fake News Again on 11.24.17 at 11:24 pm.
“We are going to CUT the size of Govt by 15%” – will win by a landslide…..
-Along with a corresponding cut in services too right?
Thank you for clarifying the 100% night and day difference in Govt vs the Private Sector. Somehow through some “miracle from God” humans in the private sector can cut staff and still maintain 100% service…..
#182 Lost…but not leased on 11.25.17 at 1:18 am.
FYI: Legal Notice of “Bragger’s Tax”
Moroneau and Turdeau will soon table a “Bragger’s Tax” for people that claim annual income over $100,000 on blog sites.
Blog Host will be obliged to turn over required info to CRA.
Fake news again.
If you want to talk about federal employees, there was recently mass layoffs in a Toronto call center. All of the staff let go was on contract (aka everyone hired in the last 15 years).
Looks like you have been reading some fake news published in 1997.
And I work in the public sector. Lol @ you if you believe it’s 100% efficient and everyone works hard.
Genius “BTW, if the CRA is reading this, don’t even bother.. I’m behind 3 proxies across 2 continents from a VPN paid with anonymous crypto currency, using a ToR browser through the I2P nework through a free wifi from a local cafe without cameras installed. I will admit, latency is a bitch, but you’d have better odds finding Edward Snowden”…first, even I know where Snowden is and second, CRA doesn’t even remotely have the staff nor the talent to bother chasing any one individual so you might as well relax your efforts to hide. Somewhere in your ether you’ve typed in a valid email address somewhere, sometime.
You can spend hours trying to hide but if no one is actually looking then you’re spinning your wheels.
Most people posting here are absolutely typical Canadians. If someone they have never personally met or vetted asks them to divulge their gross and net incomes they gladly do it on the assurance of annonymity but type in a valid email address to do it.
Retired Couple: $97.7/$12.8k/Effective Rate 13.1%
#238 Vampire studies GMST on 11.25.17 at 12:40 pm.
192 genius money – thanks v much for the video links a few days back. Senate hearing very enlightening. Speaker did note however the presence of approx 500 working crypto currencies which will be very volatile for some time yet.
For that reason I am out (for now). Very interested in blockchain technology however.
#239 crowdedelevatorfartz on 11.25.17 at 12:45 pm.
“Thank you for clarifying the 100% night and day difference in Govt vs the Private Sector. Somehow through some “miracle from God” humans in the private sector can cut staff and still maintain 100% service…..
Yet Govt can not…….
Well since govt is usually grossly overstaffed and underworked.
Sim. They should be able to provide the same level of service with a loss of 15% of staff.
Dont believe me.
Go on unpaid leave and get a similar job in the private sector.
Half the staff doing twice the work for less money, no union protection, dreadful benefits, no pension and no job security.
Then, after a year ( if you last that long without quitting, stress leaving, or being fired) go back to your govt job and tell your co workers what the real world is like.
Earnings astronomical…..flat 15%…..no testical squeezing social deductions….
No sales tax on anything. Sun shines every day. Cost of living is ridiculously low. No way I’d ever live on Canada. Our stock markets up nearly thirty percent…..and the Canadian dollar is falling. Why are you there? If you have a four year degree you’re guaranteed wealth here.
hmm, well, for me, id NEVER live in Asia. Certainly not in China. Boggles my mind how people go to live there.
#241 crowdedelevatorfartz on 11.25.17 at 12:48 pm.
“Don’t think the call centre employee earning 30k/year is the problem, sorry…..”
Canadian Govt employees work in Call Centers for 30k per year?
2016 Total Household Income: $183K.
2016 Taxable Household Income: $151K.
2016 Total Household Income Tax Paid: $27K.
Unusual year, made substantial RRSP contributions and had a rather large medical expense deduction.
#243 Leo Trollstoy on 11.25.17 at 12:58 pm.
Won’t post. But household income more than what I’ve read here so far.
Did mark get a job after nortel yet?
If I can be so bold, to ask why Income Sprinking should not be allowed for every tax paying Canadian?
Would it not only end unemployment, and create more jobs?
That everybody could do it, it would put the basement dwelling people to work? Doing anything that could be rated as work.
Or as it works no work! If the parents want their kid to be a professional couch warmer, that is what they are being paid for.
I see no down side to this.
If the people have the money then let them spend it as they feel.
If every body does this then there will be unemployment.
The rest of the ” Tax ” breaks should be the same for everybody. Nobody gets a break.
This fairness could be a good thing.
Okay open the flood gates!!
Sorry I meant NO unemployment!!
Fair share means nothing.
Fair to whom, the clueless T2, the lying BM, Wynne or the Ontario Human Rights court?
It sure ain’t fair for me.
Anything above 30 % total tax, including income tax and HST is a theft as surely I am not getting even the equivalent of 10 % of my tax contributions back in services.
I even have to pay for my passport!
It is time to tax the elite. not the upper middle class.
#239 crowdedelevatorfartz on 11.25.17 at 12:48 pm.
What they do is advertise 50k/year but drop shifts and change hours based on call volume (which is always high).
30k might have been a little low, maybe it’s 35k after all is said and done.
#238 interesting on 11.25.17 at 12:46 pm.
Usually it’s someone who couldn’t cut it in Canada, or the US (or any western country). They will blame the country and whine and complain about “taxes” instead of themselves.
It’s similar to a MLB player who can’t cut it in the majors, but hits 50 homeruns in triple A.
#249 For those about to flop. on 11.25.17 at 1:55 pm.
Pink Pumpkin Update.
Well, I just spent an hour or so further analyzing that Thinkpol article that a couple of people asked me to check out.
As I wrote the other day I have presented some of the cases here and perhaps also of note I have cases in my folder that were not on that list.
As lengthy as it was, it appears to be incomplete.
Anyway the main point of this post, is that when I was cross checking the information I noticed that one of the houses had just sold and I will present it just in case a realtor wants to have their say as to what happened.
5161 Trafalgar st, Vancouver.
Purchased for 2.8 million on 21st October 2015.
Sold on November 14th 2017 for .
So they held the property/ investment for two years with an annualized ROI of 9.21% according to Thinkpol.
This number appears to be before expenses.
Highly unlikely they took a loss, but the Vancouver real estate market is a 12,000 piece puzzle and this is just one piece that needs to be put in its place.
This listing would have been placed in my Possible Pinkies Folder( chasing a 10/20% gain)without much to support it.
I’ve got some of the answers, but I will keep asking the questions on behalf of the people on the blog that are interested in transparency in the marketplace…
I find income taxes so offensive. The waste of forcing someone who makes $30k to file and pay $3k in income taxes after all their HST, excise, and property taxes. We need to take tax policy away from politicians and give it to economists. Elect politicians to distribute the wealth, not decide how to collect it in the most inefficient and biased matter possible. A bigger pie and we can all eat more.
Dual income earned around $165k with taxes of around $33k.
181,500 gross income (incl, spouse & investment)
35,000 income tax.
9,000 sales tax (estimate)
2,500 property tax.
TFSA & RRSP, typically max contributions.
Two middle-aged full-timers in Ontario with group RRSPs and lots of unused RRSP contribution room from lesser earning/mortgage paying years that now comes in handy:
Total income 361K (241+120)
Total income tax deducted 115K.
Combined Refund 45.5K.
#254 not a bragger on 11.25.17 at 2:25 pm.
yawn ..just a bragging scene ….
i won’t divulge my financial good fortune.
except to say i have chosen time over money .. so grateful.
so of course no one who is working 3 jobs at minimum pay will be here on this page .. sigh.
USER Pay for EVERYTHING!
Health, Education, Care Homes, etc.
Only benefit is a Universal Basic Income.
Lease out (Nationalize) Natural Resources, Telecom frequencies, etc.
Immigration at G7 average.
#108 crowdedelevator on 11.24.17 at 8:34 pm.
“An electrician and a millwright……”
Also check out an electrician and a plumber! :)
Won’t post. But household income more than what I’ve read here so far.
Of course it is, you’re the best.
you didn’t know that?
$62 k in taxes paid.
I make the majority and made a huge RSP contribution. I was saving the RSP room for when I sold some stock with large unrealized capital gains but decided enough was enough, and T2 is not getting my money.
Doing the same this year!
Garth is absolutely right here. I’m not rich by any stretch, didn’t have a dime till I was 30 – spent 25- 30 or the first 5 years of my career paying off undergrad and grad school.
So at almost 40 we rent, 2 kids and not balling (400K investments) but taxed like a baller. Whilst at the same time people who contribute very little and take, take all while sitting in 7 figure homes pay fractions of what we do.
this government is not positioning us to be competitive going forward.
50% of the comments and numbers.
Not a single mention of anyone paying capital gains from sale of investment or recreational real estate in 2016?
#260 Lost. but not leased on 11.25.17 at 2:58 pm.
#247 for those about to flop.
The Trafalgar house is interesting…
Not sure when built…but it appears to be of the style built for Hong Kong expatriates in late 1980’s early 1990’s.
These are approaching 30 years of age, hence what is the depreciation ?
May soon see these be demolished for the new generation of homes.
too many : too few is an understatement here “uber sharing for bikes”
China’s cycle hire startups allowed users to unlock GPS-enabled bikes with their smartphone, and drop them off anywhere without the need to park it at a dock.
0.62% of population earned 10% of all income. And ONLY paid 22% of all tax.
So 99.38% of the population has to share the remaining 90% of income.
You are free to earn more. & # 8212; Garth.
#263 in seclusion on 11.25.17 at 3:25 pm.
although I am a semi regular poster, I prefer to remain anonymous.
under those circumstances, I will confess that I own my own business. We took over the business from my parents.
I have got up early and went to work for 30 years.
I take advantage of all legal tax allowances available to my business.
Income splitting with my spouse.
Depreciating capital assets and rolling stock.
employing family members.
I also admit to sometimes using the business for personal purposes.
I drive a company vehicle to the coffee shop.
the business pays for insurance, gas, and repairs to that vehicle.
I write off more than the 10% of my home office expenses.
I am out of the country on holidays 4 weeks per year.
We have a boat. (against my better judgement)
I drive a goldwing (sorry Garth)
For the past 10 years my partner/ spouse and I have paid little or no income tax. We have no reportable income. She does not work outside of the business.
She stayed home and raised our family, often while I worked late.
I have worked at some of the dirtiest, stinkiest, cruel jobs that you can imagine.
We drive new vehicles, and live in a nice large home.
We cannot make use of an RSP, and have no health insurance. My CPP will be minimal because we have little income.
We have put all our kids through post secondary education, and still have a modest RESP to deal with.
All the money we make, gets spent into the economy as business expenses, or invested into unregistered investments and modest TFSAs.
The business has capital assets in excess of several million dollars, and zero debt.
We make use of corporate tax rules.
None of my kids are interested in taking over the business (yet).
We have rental properties.
Also, if a person has money, they have benefits to live more efficient lives. We have a COSTO membership. We can buy our needs in bulk. TP costs 1/2 what my low income tenant pays. the same for groceries, living expenses, insurance (because it is bundled), I can afford LED lights to lower the hydro bill.
Our cell phones are a business expense.
Since we are low income, my last kid in school gets a tuition grant. I get the HST benefit cheque, and the trillium benefit. My accountant fees are deducted.
Over the past 30 years, we have literally spent millions back into the economy in goods and services. We have sacrificed, scrimped and saved. We have built this business from a wasteland into a viable, profitable business property. I strongly reject accusations of being a tax cheat, or not paying our fair share.
We are now enjoying the fruit of our labour.
Travel, nicer restaurants, better gifts for the kids,
and driving a vehicle not held together with duct tape.
Lá você tem isso.
#246 MF on 11.25.17 at 1:38 pm.
#238 interesting on 11.25.17 at 12:46 pm.
Usually it’s someone who couldn’t cut it in Canada, or the US (or any western country). They will blame the country and whine and complain about “taxes” instead of themselves.
It’s similar to a MLB player who can’t cut it in the majors, but hits 50 homeruns in triple A.
Have you tried living in Asia? I was there teaching ESL for 2005/6, and it was amazing. Beautiful people, country and everything was sooo cheap.
Since we have no kids, we certainly plan to retire overseas. With the cost of living being 70% less it’s a no brainer.
Last trip we took to Asia we stayed at a place nicer than most “5 star” resorts in Mexico for $20 a night. They told us to book directly with them next time and it would go down to $12.
For the price of your average SFD in Van/TO you could have a mansion with STAFF for 30 years in some asian countries.
Or if you look at it another way, take whatever retirement plan you have and shave 10-15 years off it since you need so much less money over there. 10 Years of your life before you are old and frail is a HUGE win.
So no, it’s not just for “those who can’t hack it in the big league”…..
. #221 Cheese on 11.25.17 at 10:56 am.
. Most of the posters here pay more in taxes than I earn in a year, most.
. are multiples of that value….
. I dont think I should read these polls, they put me in a low place.
Yeah, I’m pretty surprised how around the $100k level seems ho-hum here. If I went back fully into the rat race I would probably have to sell my soul to make around 3/4 of that. I suspect a lot of commenters here are most likely not the average person’s peer–mature professionals, partners, presidents, doctors, people leveraging the work of a staff, inherited property etc.
Got the work visa. Good by Cunkstan.
Another savage road trip to the heart of Libralism.
365 day flip flop climate. I just have to keep my mouth shut.
Looks like your readers are all top 5% earners…No wonder they like conservatives and hate liberals lol.
I only look at my taxes once a year—and couldn’t be bothered looking up the figures—but suffice it to say that most of my income for 2016 was tax-free or - deferred (unrealized capital gains, tax credits on grossed-up eligible dividends in my non-registered account, RRSPs, TFSAs, CCA tax shield on rental property, etc.).
#269 Steven Rowlandson on 11.25.17 at 4:04 pm.
Have I paid my fair share this year? So far I earned almost $8500 helping to build stairs and paid tax buying gas to go to work and I live in my car and in church depending on the time of year. Do you really think I qualify to pay income tax let alone live in Canada?
#270 Steven Rowlandson on 11.25.17 at 4:25 pm.
“Usually it’s someone who couldn’t cut it in Canada, or the US (or any western country). They will blame the country and whine and complain about “taxes” instead of themselves.”
If one is making the effort to earn a living and isn’t making it due to actions done by others then blaming oneself is not justified. You assign credit or discredit where it is due and if you have a functional unbiased justice system you use it if you can and if you have the same kind of media you use it also while trying to avoid giving opportunities to criminals and financial vampires. The blame and punishment must be assigned to the offenders otherwise you have a paradise for criminals.
#271 The Management on 11.25.17 at 5:03 pm.
As the owners and operators of a small incorporated business, we paid ourselves $226800 as salary, put $20K each into RRSPs and paid just under $40K in tax. Plus another $5k in employers CPP because as business owners you get to pay both sides!
We work hard and also spent several years scraping by and eating into savings with no RRSP contributions to get the business to where it is today. But we also feel pretty fortunate and we donated around $8K via the business to charities that help with homelessness and mental health issues – kinda voluntary self-directed taxation! Hope to do a bit more this year.
I don’t mind paying reasonable taxes to live in a free first world country. I do mind my PM suggesting that we might be tax cheats just for working hard to start a business while himself and his multi-millionaire buddies pull every tax avoidance stunt in the book. Do as we say not as we do…?
I earned $97K as a civil servant. I’m not sure how much tax I paid, but I had few if any deductions.
I feel there is a problem with your statistics. You cited a percentage of people who earned enough to be in the top bracket and the amount of tax they paid. I believe there are many more people who earned this much, but found means to avoid having it recorded as income and thus were not included in the group you cited.
Julie K. on 11.25.17 at 2:49 pm.
50% of the comments and numbers.
Not a single mention of anyone paying capital gains from sale of investment or recreational real estate in 2016?
Try comment #250. It includes investment income.
A few of the retired guys comments also mention total as including investment income.
Maybe read more carefully, without conformation bias?
Tax Paid/Owed: $12,700.
Robbed by close to 25K in tx every year.
However I play dirty in TFSA speculating like a pro and pigging high 6 figures. Started 3 years ago with 40k.
I expect I will be raided in my TFSA acct at some point.
..sorry..I meant 35K in tx.
$132,500 in gross income, $35,876 in tax.
128000 Gross income I made 103000 the wife’s maternity leave made up the difference. Paid close to $30000 in federal/provincial income tax, this number also includes CPP and EI deductions.
Best way to reduce tax burden is have a large family, thats my plan!
@MF #226, pity you see it that way. My kids go to private school, so we’re not using the public school system. We moved them after a year in a “top rated” (8.5 on Fraser) public school, and won’t be going back. Even if hypothetically we send them to public schools, we contribute substantially more in taxes than we are getting in return. I’m not complaining, we knew Canada was high tax when we decided to immigrate.
Good for your friends if they’re happy coming back to Canada after studying in the US, but I can tell you not everyone feels that way. My wife and I went to graduate school in the US, and worked in NYC for several years. We left because we were earning well, but not saving as much with high taxes. We still consider NYC home (though we don’t have US passports), and may go back at some point if the right opportunity presents itself. For some this will seem like opportunism and lack of loyalty to any country. In the business world however, this is international experience and is highly valued.
My point is a simple numbers-driven one: during the accumulation phase in one’s career, taxes play havoc with savings. Let’s say you earn $200k as a couple, spend $100k in living expenses, pay $80k in taxes, then your savings are $20k. If you earn the same $200k in Dubai, spend the same $100k, but pay zero taxes, your savings are $100k. So you save FIVE TIMES as much each year in Dubai. Do this for a few years, and your financial security is dramatically different.
So basically you come, use the educational system, health care system then leave?
One, this is a case for having Canadian passports taxed like crazy.
Two, my friends who went to the US to study came right back after they were done.
So 270,000 people in Canada(about half the population of London, On)pay 1/4 of all the tax collected? That is crazy! If many of them pack up and leave the middle class will really be screwed(we’ll see howthey like paying 50,60 or 70% tax)
wealth survey response earnings…. 54 years old…. railroad wage 140,000/ wife stays home. Paid off bungalow. Only one ever bought and will probably die in( big reason for wealth) Investment portfolio over 250,000(thanx for the pot Justin) Retiring in six months. Defined benefit plan. Down to 60,000 per year. I can’t help it…..Canadians are stupid.
#283 Slightly Bent on 11.26.17 at 1:34 pm.
This year so far (as an employee)
$110 in income tax deducted, not counting CPP/UIC.
Very, VERY close to packing up and leaving this country. Not worth the effort to drive that salary anymore.
Paid $435K in taxes.
#285 Doug in London on 11.26.17 at 2:41 pm.
So yes, as we can see the benevolent government is going to spend more and more and more and more in the year to come. As mentioned, some of the increased costs will be paid for with greater taxation, but what if that still doesn’t cover it all? That means this benevolent government will have to borrow more money. Governments borrowing more money? Who ever heard of such a thing? If that happens, it means an increased demand for borrowed money. Just think of what that could do to interest rates. Oh, maybe I’m wrong, according to many “experts” who post here interest rates will NEVER go up.
#286 under the radar on 11.26.17 at 4:38 pm.
my handle says it all.
460K for the household, 2 incomes, 1 kid. 180k ish in taxes. Maxed RRSP, TSFAs, and RESP.
Going off memory, but that’s pretty close.
So far this year, my pay stub says: income $58K,
Tax deducted (Federal and QC): $15,800 (that’s right, no typos)
I usually have about 5K in rrsp contributions so am expecting a refund, but it basically makes me sick each time I look at my pay stub. Don’t complain so easily unless you live in QC k?
This will be my husband’s first year self-employed (first 3 months salaried) and is at about $65K gross, but he will at least have some good deductions and those first three months’ deductions. After seeing how his first tax return goes in April, we’ll be able to do some better tax planning for 2018.
We are DINKS, healthy, no drug-use or mental health issues, so we do not use available social infrastructure very much.
PS & # 8211; I love Costco too.
Income Tax: $ 20,347.51.
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