Thanks Canada!!!

[raven54]

Time to go Expat!! Thanks Canada, we love you!!

http://www.cra-arc.gc.ca/gncy/bdgt/2012/qa07-eng.html

[Beefitarian]

~sigh~
I used to love Canada more than I do now. I still love airplanes and it feels like Canada is jealous of that.

In this case not much is made and exported here so by pulling this they must be hoping to bring in more money from else where.

Sorry to hear Raven. I can't say I'm surprised other than it took until now for them to do it.

[Adam Oke]

I'm assuming this affects SGL and the likes?

[Cam]

Pay up! No free rides!

[Beefitarian]

Pay up! No free rides!

That seems like a fair reason for reducing it. Eliminating it not so much.

I'm not convinced of the value paying full tax to live here full time. You live here half the time, even less value.

[mbav8r]

Are the people who are "working" overseas paying tax there? Not likely and if you are not then why should you not pay taxes somewhere? I get if this affects you, you are going to be upset but if this situation no longer benefits you, you either ask for more money to offset the taxes for a net loss of zero or come back and work here and pay your taxes like everyone else.
I live in one province and work in another, the tax rate in the province I work is much lower and I pay taxes where I live, so every year I owe money. Wish there was an OOPTC(out of province tax credit) so I could avoid paying taxes on 80% of my earnings. Seem silly?
I can't believe this even existed in the first place and I think it will mostly affect the corporations that take contracts out of country, because they will have to pay more to find people willing to do it.
Bottom line quit your whining and pay your taxes!

[coreydotcom]

I dream of a system that works like this (and I'm sure I'm oversimplifying):

Escalated tax rates depending on income, at the same % we currently have, but the amount of "tax" paid is divided into two categories:
1) "traditional tax" - i.e. tax we currently pay... to the government... so half of your taxes would be paid to the government
2) "investment tax" - i.e. your taxes would be deducted at the source (sorry, im french and i dont know how to exactly translate that) like they currently are but the other half would be kept in some sort of account and every year you would mandatorily have to invest those tax dollars, or else they go back to the government.

So, for example:

I make $120k. I have to pay $60k of taxes. $30k goes to the government. At year end I have $30k I have to invest, or else it goes somewhere. With that $30k, I invest in whatever business I choose (preferably small businesses, in my mind...). Kind of like a dragon's den. I would say, "hey you, ill give you $30k for 10% of your business". Little guy get's some cash, buys goods and services, employs people, everybody wins, his business BOOMS and I get even richer because I own a part of that business.

One day...

[squash junky]

Does this apply to pilots working overseas and living in Canada?

[KK7]

This is a game changer for companies like Voyageur, TransCapital and survey companies that operate outside of Canada. It's essentially taking up to $14 000 out of people's pockets.

It's not eliminating taxes, it's an 80% tax credit on income up to $80 000 based on working outside the country for at least 90% of the time. It applies to UN contracts and any kind of exploration work, including airborne survey. Two reasons I am aware of for the credit is incentive to work for the UN and in exploration, and also due to less use of services in the country like health care, roads, etc... As a pilot who works for a Canadian company overseas, I don't get any services from the government in the country I'm working in either, so why would I pay tax there?

Anyway, it sucks, fortunately being phased out between 2013 and 2016, but I already know a handful of people who already decided to move onto something else because of this pay cut.

[bmc]

[quote="mbav8r"]Are the people who are "working" overseas paying tax there? Not likely and if you are not then why should you not pay taxes somewhere? I get if this affects you, you are going to be upset but if this situation no longer benefits you, you either ask for more money to offset the taxes for a net loss of zero or come back and work here and pay your taxes like everyone else.
I live in one province and work in another, the tax rate in the province I work is much lower and I pay taxes where I live, so every year I owe money. Wish there was an OOPTC(out of province tax credit) so I could avoid paying taxes on 80% of my earnings. Seem silly?
I can't believe this even existed in the first place and I think it will mostly affect the corporations that take contracts out of country, because they will have to pay more to find people willing to do it.
Bottom line quit your whining and pay your taxes![/quote

I have been living as an expat for 14 years. I use no Canadian services at all. I own no property in Canada. And I'm in a tax free status because of my employer. Are you saying I should be paying Canadian taxes just because?

[trey kule]

Are the people who are "working" overseas paying tax there? Not likely and if you are not then why should you not pay taxes somewhere

?

First you ask a question, and then you answer, based, on what....an assumption?

There are all sorts of tax considerations if you are working as an expat...And to directly answer your question, in many cases (such as Austalia or the US).....YES. You do pay in the foreign country. Cough couignorentbastcough
cough... In some cases you pay to the foreign country and then deduct from your Canadian...And in some cases just pay Canada, and if eligible get the OETC..... Generally if you are working for a Canadian company you will pay taxes to Canada, and if you are eligible, can use the OETC

If you dont know what you are talking about, maybe stop bashing people saying they should pay taxes some where. Province to province is not the same.

The OETC was very nice if you maintained a home in Canada, had a car or two sitting in the garage depreciating while you were away, and were getting all your medical benefits elsewhere...
What it is going to mean is an increase in wages , and when you do the math with increased taxes, it will mean about $20k more a year, as ....well, as you wil have to pay taxes on the increase wont you.

[mbav8r]

An OETC can be claimed by an individual resident in Canada who works abroad for at least six consecutive months for a specified employer in connection with a resource, construction, installation, agricultural or engineering contract or for purposes of obtaining those contracts. In general terms, the credit equals the individual's tax payable on 80% of their qualifying foreign employment income (QFEI) or $80,000 (maximum QFEI), whichever is less.

TreycoughDouchebagcoughKule,
First of all notice I put working in quotations, not living out of country, working. Your right, I don't know how exactly it works, but apparently the government thinks it's ridculous too. I think I can reasonably assume that if you are a contract employee for a Canadian company, working in a foreign country, you're not likely paying taxes there.
As for medical expenses, if you're paying for your own, you're the

Cough couignorentbastcough

.
Who, in there right mind would accept a contract in another country and not have the medical expenses covered in the contract terms? If you are, I'm sure they're tax deductible.(sarcastic tone)
Let's talk about expats living abroad, shall we. I firmly believe they should be paying taxes to Canada, if they ever plan on returning here in their gloden years to soak up good old Canadian "hospital"ity. If you plan on taking advantage of "free" healthcare you should pay your share. Why should I pay more taxes to cover someone who lived some other country, only to return when their health starts to fail them.

[bmc]

Sorry dude. I see no reason why I should pay Canadian tax anymore than you should pay tax to Ireland.

Everytime I have had to use health services in Canada, since I left, I have always had to pull out a credit card. I never got by paying less than 500 bucks per visit.

I do not use Canadian services, so why pay?

Do you go out of your way looking for ways to pay more taxes?

[mbav8r]

So, being that every situation will be somewhat different, whats your plan when you retire? Stay in Ireland or move back to Canada?
If you move back to Canada, assuming you kept citizenship, after a 3 month waiting period you're back on Canadian health care, except in Manitoba, NO waiting period. Seems right, my taxes on a continual rise and "you" come back and drive the cost of health care up.
This pisses me off,
Jane, a Canadian moving back from the U.S. in 2008 notes her reason for returning to Canada:

"I am a 60 yr. old, unemployed, female moving back to Ontario because I can no longer afford to live in the U.S.A. without health care...."

Oh and by the way, I don't pay taxes to Ireland because I don't live there and won't be using there health care system. I feel there should be a system where if you lived elsewhere for x amount of years and return to Canada you only get that percent of health care covered. ie; You're 65 and you lived in Ireland for 30 years, thats 54% of your lifetime in Canada, so you're only covered for 54% of your health care cost.

[Expat]

Same here as bmc.
I do not use any services in Canada, neither do I plan to retire there. I maintain a houselold in a third country, and use the services there. They are not free, but cheap.
Expats should not be considered free loaders, because they all pay their share of services they do not even use, because they have better ones abroad, or it is simply not practical to come home for them.
So in my opinion, a reduced tax rate was well justified.

[Beefitarian]

Expat and BMC this won't affect you will it? You basically don't live here at all. Is this not more about people that do live here but work abroad?

I think what is really going to happen is people who find jobs elsewhere will just move somewhere else instead of paying more tax.
This likely will lead to a loss in revenue coming back.

But maybe I'm wrong and more Canadians would rather pay it and complain. It may be one of the few defining traits of being a Canadian.

mb you're closing in on the "let's get rid of social health care. I don't want to pay monthly fees. I could use that cash to pay for actual visits when I get my cat1 and save money." argument. It's kind of valid but the point used to be, we're willing to chip in a little to help everyone live better. You're telling people that don't live here to chip into pay for Jane, why not you?

[bmc]

First, I'm not in Ireland. Second, I plan to retire elsewhere in Europe, from the 200 year old stone farm house near the vineyards. Going back to Canada for health care is a foolish move. I pay a hefty amount of health insurance and I get quality for it. Something my family in Canada thinks they're getting. I will be eligible for a passport next year and will most likely pursue it.
I don't believe in freeloading and I'm not sure where you get off on suggesting that I'm one.

Are you one of those angry old men that chase kids off your lawn?

[mbav8r]

Let me be clear, if you are not living in Canada and don't plan on returning to the land of "free" health care, I don't care where or if you pay taxes. The ones that do plan on coming back, it's wrong to expect a country that you took no part in supporting, to take care of you later on in life.
To the original topic, if because of this loss of credit, the out of country contract no longer works for, don't do it.
Simple

[Wacko]

... you don't need to live in this country to collect the benefits of the health care here.. you just need to know how to play the game. They should be fixing the loopholes but they always go after what is easiest.

[mbav8r]

BMC, you tell me how a reasonable person would not assume you're in Ireland. And I have a big angry dog who chases the kids of my lawn, I'm getting too lazy to be chasing kids around. Lastly, I tried to see in my post where I called you a freeloader, I think it was this, " my taxes on a continual rise and "you" come back and drive the cost of health care up."
The word, you in quotations was meant to imply all those who do as I described, not necessarily you, unless it applied to you.

Sorry dude. I see no reason why I should pay Canadian tax anymore than you should pay tax to Ireland.

Everytime I have had to use health services in Canada, since I left, I have always had to pull out a credit card. I never got by paying less than 500 bucks per visit.

I do not use Canadian services, so why pay?

Do you go out of your way looking for ways to pay more taxes?

[Expat]

Free healthcare with a three month wait is a joke. healthcare is a form of emergency, and should be dealth with accordingly. I find it preferable to pay a small amount, and have service pronto. So, as an expat, I am not missing the free healthcare.

[Beefitarian]

... you don't need to live in this country to collect the benefits of the health care here.. you just need to know how to play the game. They should be fixing the loopholes but they always go after what is easiest.

I agree this is the problem and believe like many other things instead of addressing it, they wil penalize the honest people that don't know how or won't take advantage of the loop holes.

I would not even mind if the money went to fund Jane's crazy bitch medication and parks instead of pensions for the politicians writing these laws up.

[Wacko]

Free healthcare with a three month wait is a joke. healthcare is a form of emergency, and should be dealth with accordingly. I find it preferable to pay a small amount, and have service pronto. So, as an expat, I am not missing the free healthcare.

I actually think they SHOULD start charging a basic 30-50 bucks per visit. I've been in the emergency rooms quite a lot in the last year (not for myself) and I bet your 50% of the people sitting there could just as well see a family doctor the next day. It's frustrating to have to go to the US to pay for services because you WILL DIE before some services are performed here in Canada.
I don't know about the rest of the country but living in Alberta, we have some of the most expensive health care... yet we probably have the longest waits in the country. The problem is that there are way too many generals and not enough soldiers! This tax BS here isn't going to go into your local hospital.. I guarantee you that.. it will go into the next overpriced contract that some politician is going to benefit from.

[Expat]

The funny part is that a lot of patient just travel to poor countries, to get medical treatment faster. Favorite destinations are eastern Europe, India, and Iran. You find there qualified staff, and the prices are affordable. No waiting either.

[Beefitarian]

Ok, I have to go before I start complaining about King Ralph blowing up and shutting down hospitals. Gah, too late.