Tax brakes! (sic)

I am one of that supposedly rare breed of souls (in all probability actually considerably less rare than urban myth would have us believe) that is happy to pay my taxes. Well – ‘happy’ might be going a bit far, but let us agree at least on ‘content’…

This does not – of course – imply that I am at all content with some of things upon which my tax dollars are spent, but that is a matter between me and my government (or would be, if I had one. As I am not eligible to vote here until such time as I can apply for and am accepted as a citizen it could be argued that I don’t actually have a government, though that does not stop them being eager to get their hands on my ill-gotten gains).

Should the gentle reader care to cast an eye back over the proceedings on this site he or she will discover a fair number of entries dealing with matters of taxation. Transferring one’s financial affairs from one continent to another is no trivial matter though, naturally, one in which revenue offices everywhere take a particularly keen interest. It is of no great import now – of course – all such issues having been settled. These days my tax affairs are simplicity itself –  not least because The Girl and I employ an extremely efficient tax accountant (an old friend of hers) to process everything for us. Worth every cent, too!

The Canadian tax year runs from January to the end of December each year. Tax returns must be completed and outstanding monies paid by the end of April. Up to the end of the last tax year my income consisted solely of the three pensions paid to me in the UK, the which I transfer monthly to Canada at whatever favourable rate I have been able to negotiate. I simply submit the transfer slips for the year and on that basis my taxes are calculated.

Now – this should all be sufficiently straightforward that there be no surprises. We pay both Federal and Provincial taxes but the formulae for each are widely published and there are plenty of online tax calculators on the InterWebNet which can be used to predict how much should be put aside to cover the resultant bill.

I must admit to being slightly disconcerted by the fact that the three or four calculators that I tried this year all gave different results for the same initial data – but as they were all roughly within spitting distance of each other I resolved simply to save conservatively and to keep my fingers crossed.

The paperwork was submitted as usual and on the very last day possible – April 30th – I visited our tax accountant to pick up the account and pay the bill. I was in for a most pleasant surprise. The reckoning was several thousand dollars less than any of the estimates had indicated.

I am not one to look a gift horse in the mouth and I am certainly not complaining at this unexpected good fortune. I think I can also live with any feelings of guilt by which I might be assailed. I am – however – somewhat concerned that I clearly still don’t fully understand how tax arrangements here work.

Hmmm! More study required…