To surrender or not - Endowment Policy
Sep 1st 2009 | 4:13 pm
#31
Retired
Joined: Apr 2004
Posts: 34,646
Re: To surrender or not - Endowment Policy
We did have three to surrender in the UK. The first one surrendered two weeks ago
we had the money paid straight into the UK bank account so there is money in there to pay for the other two which will not surrender until 2014.
We were told that we do not need to pay tax in canada on it by a canadian accountant. The money is tax free from the uk and is staying in the uk.
we had the money paid straight into the UK bank account so there is money in there to pay for the other two which will not surrender until 2014.We were told that we do not need to pay tax in canada on it by a canadian accountant. The money is tax free from the uk and is staying in the uk.
Is this Canadian accountant a CA, CGA or CMA? If so, I would expect such accountant to be able to explain this further.
As Canada tax residents you're liable to Canadian tax on worldwide income, whether brought to Canada or not, so is this accountant suggesting that:
- the gain doesn't fall within the Canadian definition of "income"?; and/or
- there is special treatment under the UK/Canada double tax treaty.
Accountant should be able to explain easily and put opinion in writing.
Sep 1st 2009 | 5:57 pm
#32
Joined: Sep 2008
Posts: 12,830
Re: To surrender or not - Endowment Policy
When did you last deal with CRA or review any court decisions involving CRA? If they have information of income, they can make an assessment based on that information and come up with a figure. The individual has to prove this is incorrect. They don't just pick a number out of a hat.
Sep 1st 2009 | 6:01 pm
#33
Joined: Sep 2008
Posts: 12,830
Re: To surrender or not - Endowment Policy
Is this Canadian accountant a CA, CGA or CMA? If so, I would expect such accountant to be able to explain this further.
As Canada tax residents you're liable to Canadian tax on worldwide income, whether brought to Canada or not, so is this accountant suggesting that:
- the gain doesn't fall within the Canadian definition of "income"?; and/or
- there is special treatment under the UK/Canada double tax treaty.
Accountant should be able to explain easily and put opinion in writing.
As Canada tax residents you're liable to Canadian tax on worldwide income, whether brought to Canada or not, so is this accountant suggesting that:
- the gain doesn't fall within the Canadian definition of "income"?; and/or
- there is special treatment under the UK/Canada double tax treaty.
Accountant should be able to explain easily and put opinion in writing.
