forecast of annual pre-tax retirement income. With the use of a seven module procedure, this tool allows users to manipulate most conditions that affect C.P.P. (i.e. taking it early or reducing the number of years paid into the plan), O.A.S., employer pensions, RRSP, and other income amounts. Once the appropriate information is entered, a summary may be printed.
SPOUSAL C.P.P. SPLITTING
It is possible for spouses and common-law partners to adjust their CPP receipts so that each person receives half of the pension earned for the years when the two partners were together.
To make this “assignment” each partner must be at least sixty years old.
This may significantly reduce income taxes if CPP income is shifted to a lower
CHILD REARING DROP-OUT PROVISION - CPP
It is noted in the Human Resources website (www.hrdc.gc.ca) that where a person left the labour force and had a child under the age of seven, these years may be excluded in the calculation of the CPP benefits. This has resulted in refunds to many persons who have been receiving their CPP benefits but are only now advising HRDC of their children. To apply, the child’s birth or baptismal certificate will be needed. For further information contact 1-800-277-9914.
WEST AFRICAN/NIGERIAN FRAUD LETTERS
these letters implore the receiver to take part in a currency transfer plan where the receiver is promised rewards
amounting to millions of dollars. The intent of the sender is to abstract money from the receiver in advance in the form of items such as unforeseen taxes, banking fees, and administration fees.
If you receive a letter or proposal that has these characteristics or is somewhat questionable, contact “Phonebusters” (operated by the Ontario Provincial Police) for more information at 1-888-495-8501, email: email@example.com, web: http://www/rcmp-grc.ca/scams/nigerian.
The website also includes valuable information about other telemarketing scams, how to spot a scam, how to report a fraud and information on charges, arrests, counts and sentencing.
The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions in a commentary such as this, a further review should be done. Every effort has been made to ensure the accuracy of the information contained in this commentary. However, because of the nature of the subject, no person or firm involved in the distribution or preparation of this commentary accepts any liability for its contents or use.
2003 SECOND QUARTERISSUE NO. 62PAGE 7
Tax Tips & Traps