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Taxed twice!

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Old Feb 6th 2013 | 8:11 am
  #1  
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From: Upper Kennetcook.N.S.
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Default Taxed twice!

Hi
We moved to Nova Scotia from the UK nearly 3 years ago after my husband retired from the Police, he pays tax on his pension which is paid in the UK direct to our bank. He has had a demand for $7000 to be paid before the end of the month which states that as the pension is a publically funded pension he must pay taxes on it in Canada. We understood before moving over that he would not be taxed twice on his pension. Does anyone here know different?
 
Old Feb 6th 2013 | 8:20 am
  #2  
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Default Re: Taxed twice!

Ive moved this to the main Canada area for you.

Paging JonboyE. Paging Mr JonboyE...

Last edited by iaink; Feb 6th 2013 at 8:27 am.
 
Old Feb 6th 2013 | 9:08 am
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Default Re: Taxed twice!

Your pension is taxable income in Canada. It should not be taxed in the UK but you have to send this form to get them to stop. http://www.hmrc.gov.uk/cnr/canada-individual.pdf

Although the pension is taxable in Canada you can claim a tax credit for the tax withheld in the UK. However, the amount withheld is usuall 20% and your rate in NS is likely higher. Therefore there will be some more tax to pay here. There is no way I can know if $7,000 is what you owe. If it is too much you will have to file T1 Adjustment requests. It might be worth searching out a local accountant with some experience of this.
 
Old Feb 7th 2013 | 12:45 am
  #4  
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Default Re: Taxed twice!

Thank you very much JonboyE
 

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