Many seniors don’t realize that pensions paid out to them must be declared as part of their taxable income each year – even though that income may not be taxable if the senior was still resident in that country. As a result, seniors can accumulate 10 or 20 years of income that has never been reported. It can add up to a horrendous tax problem when it comes to light.
Unreported foreign pensions certain will appear during an assessment or audit. Otherwise it’s most likely to be revealed when your heirs settle your estate. The Agency will question the source of the income that cannot be accounting for in the senior’s employee pension, Canada Pension Plan or OAS benefits. In some cases, the senior’s heirs are not even aware that there is a foreign pension. The burden to pay the tax, with civil penalties and daily interest, falls on them and must be discharged before the estate can clear probate. It’s not a pleasant legacy to leave behind. Many seniors, once they realize that they have been evading tax, consider the Amnesty option.
The best protection is to report all sources of income received from anywhere in the world. Omitting any income source creates a scenario of “I didn’t know I was supposed to report that” which carries absolutely no weight with the Agency.
Ask a tax professional to assess your income and help you accurately report everything. A well-informed tax professional will know what income sources are subject to income tax. Most important, if you haven’t been reporting your foreign pension income, seek an Amnesty before you file your next return.
Many seniors don’t realize that pensions paid out to them must be declared as part of their taxable income each year – even though that income may not be taxable if the senior was still resident in that country. As a result, seniors can accumulate 10 or 20 years of income that has never been reported. It can add up to a horrendous tax problem when it comes to light.
Unreported foreign pensions certain will appear during an assessment or audit. Otherwise it’s most likely to be revealed when your heirs settle your estate. The Agency will question the source of the income that cannot be accounting for in the senior’s employee pension, Canada Pension Plan or OAS benefits. In some cases, the senior’s heirs are not even aware that there is a foreign pension. The burden to pay the tax, with civil penalties and daily interest, falls on them and must be discharged before the estate can clear probate. It’s not a pleasant legacy to leave behind. Many seniors, once they realize that they have been evading tax, consider the Amnesty option.
The best protection is to report all sources of income received from anywhere in the world. Omitting any income source creates a scenario of “I didn’t know I was supposed to report that” which carries absolutely no weight with the Agency.
Ask a tax professional to assess your income and help you accurately report everything. A well-informed tax professional will know what income sources are subject to income tax. Most important, if you haven’t been reporting your foreign pension income, seek an Amnesty before you file your next return.
Tax Law
DioGuardi offers solutions for tax problems such as:
Unreported income
Unfiled tax returns
Payment arrangements
Unpayable tax debt
Tax dispute litigation
Criminal tax defense
Wills, Estates & Trusts
DioGuardi Law offers these will, estate and trust services for individuals and business-owners:
Wills
Preparation of trust agreements
Powers of attorney
Estate administration
Probate
Representation in estate driven litigation
Real Estate
DioGuardi Law can assist you with all your real estate needs including:
Newly constructed/Resale
Purchases and Sales
Title transfers
Leases
Private mortgages
Refinancing
Condominiums
Vacant land
Tax Debt Relief
When your tax balance is too large to be affordable, DioGuardi Law can protect your home, your cash flow and your financial assets from the Taxman. It is essential that we begin planning a strategy before the CRA registers a lien against your properties or seizes financial accounts, and before you engage with an insolvency trustee.
Business & Tax Planning
DioGuardi Law has the experience to provide:
Resident and non-resident corporate restructuring
Optimum use of holding corporations
Continuity and succession planning
Tax-free transfers
Losses and ABIL planning
Making interest tax deductible
Small business planning
Corporate & Commercial Law
DioGuardi Law have represented business clients for the last 50 plus years and have supported their legal requirements on an on-going basis by offering the following services:
Incorporations and corporate governance
Corporate reorganizations and transactions for the directors and shareholders
Negotiation and drafting of agreements, professional corporations, minute book maintenance
Brigitte DioGuardi
B.A., LL.B
Brigitte obtained her Law Degree from the University of Sheffield in the United Kingdom. Upon her return, she qualified for the Bar and was called to the Law Society of Ontario (formerly the Law Society of Upper Canada) in 2002. She was also a member of the Bar of British Columbia and headed up the Vancouver office of DioGuardi Tax Law. Fluently bilingual in English and French, Brigitte has broad experience in the areas of:
Joyce Bruno has worked as executive legal assistant to Paul Dioguardi for 35 years and continues to offer her expertise and experience to the Dioguardi Law firm. Joyce’s role has evolved over the years and has acquired and developed many skills. She is an invaluable asset in case management and ensures the smooth running of our office.
Paul DioGuardi
B.A., LL.B, KING’S COUNSEL, SENIOR COUNSEL
Paul obtained his Law Degree from Queen’s University in 1964. He is a member of the Bars of Ontario, British Columbia and the Turks and Caicos Islands, a British tax free territory in the West Indies. He has over 50 years of experience and was trained at the Ottawa head offices of Revenue Canada and the Tax Litigation Section at the Department of Justice. Paul has had and continues with an extensive career in various areas of law such as:
