283ff9e6   
   From: Canuck57@nospam.com   
      
   On 10/04/2012 5:22 AM, Alan Baggett wrote:   
      
   > Pensions from foreign countries may be subject to special tax treatment   
   under the terms of a tax treaty. Check with a tax professional to find out if   
   the pension from a foreign source is taxable in Canada.   
      
   If I am not mistaken, pensions are *always* taxable in Canada.  Although   
   they may get a lower rate if tax treaties exist they are indeed fully   
   taxable.   
      
   Unless of course your income deductions are larger than your total   
   income itself.   
      
   Realistically, pensions shouldn't be taxed at the full rate anyway.   
   Take a RRSP, you put $10,000 into it.   
      
   Inflation years go by and it is worth $30,000 but doesn't really buy any   
   more than $10,000 did many years earlier as 300% inflation has occurred.   
      
   So you might for arguments sake pay 25% tax rate on that, so minus $7500   
   your spending power has decreased considerably.  I call it predatory   
   inflation tax that reduces the value of the pension savings.   
      
   When you factor this in, a RRSP over $100K is a tax trap.  You likely   
   will be better off realizing a lower gains and dividend credits outside   
   of the RRSP.   
      
   And why TFSA is now the king of retirement savings.  Only the TFSA is   
   immune to predatory inflation tax as $10,000 in and $30,000 comes   
   without the predatory inflation tax.   
      
   The only reason to have an RRSP is to soak up the pension amount of   
   $2000.  So a man/wife could take $4000 without being taxed on it.  That   
   is a 4% yield on $100K.   
      
   After $100K in the RRSP it becomes a long term tax trap.  Say you want   
   to expat to Costa Rica, can't take a $500K RRSP with you unless you want   
   to fork 40% over to Ottawa.   
      
   TFSA, no problem.   
   --   
   Liberal-socialism is a great idea so long as the credit is good and   
   other people pay for it.  When the credit runs out and those that pay   
   for it leave, they can all share having nothing.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)