Tuesday, 26 April 2016

A Guide Through Flourishing Your Personal Finance Endeavors

Have you ever wondered about where all the money that you earn goes? Ever pondered why your money vanished in a heartbeat even after long days of hard work, or don’t even know what are the taxes that you are paying? Are you having problems on how to manage the moneys you make? If yes, then it is about time that you gain knowledge about personal finances. Start by doing or applying the routines that you’d read below in your daily life.

BUDGET - yes, whatever you do, wherever you go, whenever you use money, you have to always make a financial plan and arrangements. Take time to decide yourself where you want your money to go, and how they should be spent. Put it in your notes or making your own plan book would be better, but the most important part of planning is always putting it in your mind and applying it through your body.

Check your other financial statuses from time to time. Know them and be aware of your past, present and future financial activities. For example, if you are a dual citizen (U.S. – Canada), you could always consult a Canada US tax accountant to file your taxes. That way you’d be able to identify whether the taxes you obtain and impart is correct or not.

It is also very important to keep your life as debt-less as possible. Stay away from meaningless credits that would only burden you in the future. Some debts are really inevitable to make so as much as possible pay them as soon as you can, especially debts with interest or added payment. The same goes for your bills. Have a clear list of the bills you pay so that it would be easier for you to set aside money for settling them. Why risk in reaching their dues and having to pay them at the same time when you can avoid that by adding your bills in your financial plans?

If you’re working for a company, of course you’d get a hold of bonuses and a yearly tax return. Do not put them to waste by hastily spending your money to wherever your feet would take you. Instead, as mentioned above, for every money you receive, create a plan for them no matter the amount. You can save a part of it, use the other for settling bills or loans, and buy something you wanted to buy for a long time with the remaining balance. It shouldn’t be exactly like that, but you can have it in any way you’d like as long as it would benefit you in the future and not the other way around. However, if you feel like you did not receive the right amount of tax return, there are many ways to be sure of it. You can consult with your company accountant or for cross borders, it’d be better to have the help of a cross border tax specialist you have in your area. It is important that we get what we are entitled to get, after all.

Lastly, learn to SAVE. Do not just sell out all your money every payday. Make it a hobbit to put at least 10% of your income to a separate bank account. Doing that would not only help you in the future, but that could be the root of your successful and happy life.

There’s a whole lot more to be aware of when it comes to money, especially money that you yourself produced. Have time to read, watch and learn more about your personal finances because having the knowledge in that is essential for your hard work and perseverance to be paid off.

Wednesday, 20 April 2016

CRA: How to file income tax return online

With the due date for filing taxes fast approaching, the CRA (Canada Revenue Agency) has made filing taxes online fast, easy, and secure. In just once click, taxpayers can review their tax information, check their return, and send it online to the CRA. Filing online is also easy, as certified tax software programs guide you through the filing process, do automatic calculations for you, and guarantee that you don’t fail to benefit from any credits you may be eligible.And with the same high level of online security used by financial institutions, CRA ensures taxpayers that online filing is safe.

Filing US taxes in Canada can be done in three easy steps online: 

1. Prepare records needed for filing
Gather all your income tax information: T4 and T5 slips, receipts, a copy of last year's return for reference, etc. You can also register for “My account” to change address, view tax slips, change your return, check your benefit and credit payments, set up direct deposit for a quicker refund, and so much more.

2. Get tax software certified by the CRA
Taxpayers have the option to get programs for free or those that have a fee to use. Upon entering your information, the software will ask you key questions based on your income tax situation. These questions are based on the records you’ve provided in step 1. Afterwards, the software will do the computations. It also allows you to review your return and get a personal copy of your record. To find out software programs certified by the CRA, go to www.netfile.gc.ca/software.

3. Send your return online to the CRA
After you’ve submitted your return using the software, you will receive a CRA confirmation number. Make sure to keep this number for your records.

Don’t forget to file your 2015 income tax and benefit return, and pay any balance owing on or before April 30, 2016. For self-employed workers and their spouses or common-law partners, you have until June 15, 2016. If you need to settle a payment, check cra.gc.ca/payments for a list of online payment methods.

Monday, 11 April 2016

Concepts and Principles of Cross Border Tax Services

While tax issues and responsibilities within a country is, in itself, a complex one, dealing with international or cross border taxation concerns is to a greater degree, more convoluted. While it is hubris and trivial to master those (which requires years of schooling under a reputable university) through brief research and reading, and while it is more beneficial to enlist the cross border tax services of a firm, it is still worthwhile to have an in depth understanding of the core concepts and principles revolving those. 

Without enough knowledge of the taxation laws of two or more countries involved, a company, an institution or an entity could be subject to a painful double taxation. There are countries that either enter into a treaty or has laws that deals about double taxation remedies. In order to be protected from the harms of cross border taxation, you need a reputable provider with lawyers and employees who are expert in the international law.

Years of Experience as a Gauge of Quality Service

Cross border tax service providers can be assessed by the number of the length of years of experience in the field. A more experienced firm would most likely have encountered the most issues about cross border taxation. More than just having a knowledge of the theory, having an experience in the field and having successfully resolved or remedied an issue can tell more about the quality of cross border tax services provided by such firm which in turn would give you the idea of whether they can help you with your business.

Influence and Ability to Deal with Issues on a Particular Countries

Another consideration is the amount of influence or the ability of a firm to deal with a certain country. This can be determined by the amount of experience a firm has in dealing with taxation issues involving the country in question and whether they have a branch on that area. Having as such gives the firm the right knowledge and ability on how to properly approach the issue on the right perspective and can arrive at an alternative or a solution better than those who do not have one.

Expertise on the Field

You would most certainly have the best cross border tax services from a provider who employ someone who is expert on international taxation laws. This field of specialty is taken by few because of it being particularly boring and difficult. In order to be a master of this field, one has to be Mathematically inclined as well. You don’t want to refer to someone who has just gained his knowledge through self-study and experience. You want to refer to someone who has extensive education and experience in the field.

Trust and Partnership

The initial process of obtaining the best cross border tax services is a trial-and-error one. Perhaps the best way to form a partnership with a firm that you have had tried already. When you found one that understands your business and puts it into utmost consideration more than anything else, stick by them. You’ve found yourself the best cross border tax service provider that you would ever need.

Sunday, 10 April 2016

Understanding the Cross Border Tax Canada-US

There are things U.S. citizenship guarantees. One of them is U.S. tax. If you’re a U.S. Citizen, you are expected to pay your taxes promptly and accurately regardless of where you currently live or where you get your income.

Because the U.S. and Canada share the same borders, it is not uncommon for U.S. citizens to transfer residence or work in Canada.

Canada imposes high-income tax and other taxes and people who pay taxes to Canada is convinced that they have no tax obligations to the U.S. They are mistaken and they risk themselves into being taxed both by the U.S. and Canada.

Here are some things U.S. Citizens need to understand about the cross border tax Canada-US:
  • You are protected against double taxation. Provided that you follow taxation rules, that is, you declare and file your returns to IRS promptly and accurately, you are protected from being taxed twice. The U.S. and Canada have an agreement that specifies which, among the two countries can impose tax on a U.S. resident in various circumstances where both countries have a right to tax the same income.
  • Even when exempted, you still need to file U.S. Tax Returns. The exemption does not necessarily mean that you need not file U.S. Tax Returns. It is one of the requirements for U.S. Citizens living in Canada. Failure to comply with this results in double taxation.
  • You need to be a resident of Canada in order to be exempt from US taxes. Although there are various types of residency (which have different requirements), merely by living in Canada for more than 183 days in a calendar year qualifies a person for a certain type of residency which in turn qualifies him or her for U.S. Taxes. Be warned, however, that there are rules regarding residency. Violating any of these may result in the revocation of the residency.
  • If you are a US citizen and is not a resident of Canada, you can be exempt from paying Canadian taxes. That is, provided that you get your income from a U.S. company based in Canada. If not, you will be exempt from paying U.S. taxes instead and will be required to pay Canadian Taxes.
  • Regardless of which country has the right to tax you, you still need to declare your income from all sources in the U.S. The U.S. requires that you report to them the amount of income you earn from all sources from any country. Even if you do not own the U.S. any tax, you still need to declare your financial information. The U.S. government has increased the penalties in the past few years for non-compliance.
  • There is a new, stricter law that is intended to seek out those who haven’t filed US tax returns in years. The improved agreement for the cross border tax Canada-US allows the IRS to gather as much information from every U.S. Citizens living and working in Canada. Avoiding this would result in you being fined greatly for non-compliance.

Thursday, 7 April 2016

Qualities You Need to be A Cross Border Tax Specialist

A tax specialist with a CIOT or a CTA qualification can earn between $40,000-$70,000 annually. Even without a certification, the starting for junior tax specialist is $30,000.

Anyone of any degree can be a tax specialist, especially to those with degrees related to business. All one needs is to undergo tax training from an accounting or soliciting firm or from an in-house tax department. Those who have a degree in accountancy or law can also specialize in taxation and become a specialist.

Not all who aspire, however, are qualified for this job. Taxation itself is a complex discipline. Cross border taxation, in comparison, is a lot more difficult. Aside from being knowledgeable in the taxation laws of each country, one also needs to be familiar with existing treaties or agreements.

Ideally, a Cross Border Tax Specialist must possess the following qualities: 
  • Exemplary mathematical abilities. Although the mathematics involved in taxation is not as complex as with Engineering, still, a cross border tax specialist would need to crunch up number, sometimes, in their head. Taxation computations have no room for error. A person who has all qualities required except mathematical abilities could end up imposing more or less taxes than required, which could spell a disaster for the client.
  • Problem-solving skills. Often, a cross border tax specialist would need to solve taxation problems and issues. But a good cross border tax specialist is quick in providing solution and provides the best possible solution for a problem.
  • Analytical and logical skills. The rules and laws involving cross border taxation are intricate. A rule may or may not apply to a situation, for instance, on a given condition. One has to have an in depth knowledge about the rules and laws in taxation for the countries and must be able to use all available information in order to correctly decide which law is applicable or not.
  • Proclivity for details. The task of a cross border tax specialist is highly detailed oriented. Not only would you need to have a knack for details, but you also need to have the patience to scrutinize and analyze each detail.
  • Interest in business and finance. Your motivation for becoming a cross border tax specialist should not only be the compensation. Above all, you must have an interest in business and finance in order for you to easily get a grasp of the core concepts involved. Although those who don’t have the natural interest in business and finance can still become a tax specialist, those who have the natural inclination for it will be able to learn faster and will remember things in greater detail.
Cross border tax specialists are among the professionals who earn the most. In about 10-15 years of practice, you’d be able to save up a hefty sum of money. Although with other professions, there are still bad sides to this.

One bad side of this job is that you don’t get to enjoy the same warm welcome other professionals have. Since you are dealing tax issues with a person or a business, be prepared to be dealt with coldly. After all, nobody wants a part of their money to be taken from them.

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