Legal Fees (Assorted Topics)

Ok Teen where is the mud lol, seriously you said the lawyer fees will be taken from my total 2013 income period or just Sisip related earnings including obviously the retro minus what manulife is with-holding sorry buddy i am new to all of this

OK just got off the phone with a frontline CRA agent.  This is what was relayed to me...

1.  We must all paper file for 2013 if you get a Form T1198 QRLSP (Qualify Retro Lump-Sum Payment)

2.  The "whole retro payment" you recieve will be declared on your 2013 tax return as income.

3.  CRA will then take the info on your QRLSP form and look at the tax rate for each year and carry forward that tax rate to 2013.  In english...though the whole retro is going to be applied to your 2013 tax return your actual tax rate for 2013 will not reflect/be the actual 2013 tax rate.  Your tax rate for 2013 will most likely be lower.

4.  Legal Fee implication....you will declare your legal fee on line 232 Other Deductions of your 2013 tax return.  You MUST attach the bill to your tax return

5.  Your legal fee will be deducted from your total income for 2013.

6.  Once your total taxable income is determined after deducting your legal fees the carried forward tax rate determined by CRA wil then be applied to your taxable income.

FACTORS TO REMEMBER:

Depending on your retro payment a percentage of your retro will be witheld for taxes.  This holdback wil reflect on yout T slip from Manulife.  That said with the lower tax rate and the higher taxes paid those that pay a larger legal fee will see a larger tax return

Here is the link to the CRA http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-02-12e.html#P523_54039
Once on the site click or scroll down to Retroactive Lumpsum Payments.

Hope this helps.

call im with you i think the judge will set a fair leagal fee but we will have to pay still.and i really hope he does deall with the tax issue.

propat

ok I think I understand a bit more of it, lol
tks man

yes the judge can send it back to deal with one ore more spacific concerns.

propat

heres hoping , I dont mind most of the deal but these taxes are gonna hurt if nothings done about them. legal fees will be set by the judge so I'm sure it will be fair, hopefully he will make GOC pay all or most of it.

can the judge just do that

I really don't have a clue what they can and cant do

sounds great to me call i asked for different but yours sound better than my requests.however he will still get the idea that this is an issue of great concern i think.

propat

I offered a couple ideas to the Judge, in reference to the Deemed taxes in my letter. Send the proposal back, and ask the GOC to, 1 Waive all Deemed taxes, on the QRLSPs, or 2 create a fund that rebates all members deemed taxes, after our tax returns are completed. maybe this can get done quickly, with little resistance. and make taxes fair for all class members. the 3.27% top up would then be scrapped.

IF THE 17% IS NOT LOWERED TO A SINGLE DIGIT THERE WILL BE A MASSIVE MEDIA BONANZA

VETERANS LOSE 17% OF THEIR RETROACTIVE MONEY CAUSING FURTHER HARDSHIPS TOTALLING 57% LOSE WITH THE GOC INCLUDED

thanks hard ass i hope we can get some fairness out of this without scrapping this whole deal and get it done soonest.

propat

ya know the judge can also say ok its a good deal but for the fact the deemed tax issue has not been adaquitly adressed so go back to the table and come up with an acceptible solution to this matter.

propat

YOU'RE RIGHT PROPAT , THE 15TH IS RESERVED FOR THE FEES

boys you know leagal fees are not really part of the deal just a matter for the judge to decide on after the deal is accepted and your letters may have some influance on that.

propat

If you present a good clear argument the judge can and will have the settlement delayed and ask the parties to reconsider. A good lawyer could do it in 2 mins as long as facts are there. We will see if any of us brings a ;lawyer or trys to do it in 10 mins.