Legal Fees (Assorted Topics)

Please note:..... that class counsel has indicated the following in their "memorandum of fact and law" on page 32 para 150     "Finally,Class Counsel sought confirmation from the Defendant that Class Members would be entitled to a tax deduction for any reduction made to their Refund on account of legal fees and disbursements. The Defendant has agreed to ask the CRA whether they can provide a comfort letter on this point."

IT definitely would not hurt to have this comfort letter

It's either give the government 24000 and have nothing or borrow 64000 and have 64000 after 7 years. My 7 year gic rate is 3 percent plus the loan interest is 3 percent , sorta cancels itself out. The credit union will give you one because the money never leaves the branch .

Sapper I know the mainstream banks offer RRSP loans up to 10 years however the interest rates are around 4.5% upward based on 10 year amortization. Whereas GIC-RRSP investment rates are at an all time low at around 1.9% for 5 year fixed rate. There are other types of investments within the GIC - RRSP umbrella but are not offering great rates either.

Holy shipwreck Nav...what a big payment. Do you need guaranteed income to support that loan or is it collateral on itself? Reason being...I probably couldn't get such a large loan, based on my monthly income.
S O L Sapper

thanks for the info navrat

Hey, foundry in the end I was looking at 34000 owing and with that form 1198 the difference was 11000 or so , figured out by Ufile and confirmed by BDO . So it helped me little, so I borrowed 64000 for a first Ontario GIC so now I owe around 2000 or so but I have monthly payments of 825 a month for 7 years. The only positive is I will have an extra 64000 in retirement to play with

Very sorry to hear that F foundry. It is not easy I am sure.

It is as simple as going back to court to fight the people that ripped us of, that is all parties involved MC, GOC and CRA. The fact that we were kept out of the loop at all time and we had no say in the back room deals is reason enough to go back at them. I for one am looking at $40,000.00 plus in a tax bill that puts me close to if not over 55% so yah I am pissed off and will not take it. Also my x wife is snooping around she claims her lawyer said that the lump sum that I received was tax free, ASSHOLE. All I can say now is heads will roll one way or another!!!!!

I actually wish they would reassess my returns for this years since any left over deductions from those years I could have used. Because we received all the retro at once we are unfairly being penalized pls the added legal fee deduction boondoggle ! If I had received my ltd per year like I was supposed to then I would have been way farther ahead. We get penalized because these different situations weren't looked at from our legal team

I will pay what I owe, as soon as I know the amount, I have and Idea what I will owe, but it's just a rough figure, the more and individual received, I think the more of a hit they will take, but there are many factors that come into play when filling our taxes, I can only speculate that will be the case with respect to taking the bigger hit,
it's not possible to know every individuals situation when it comes to taxes, as we are all unique in our own way, I just hope that many can find ways to lesson the impact for their 2013 return.

Like our good friend Sapper has stated, there are two things certain in Life - DEATH AND TAXES.

Navrat my good friend interest is good when you receive it, but come tax time the T5 will hunt you down with no mercy.

I am looking for my rucksack , this will come in handy when transporting all my slips, to the accountant.

Isn't isn't investment income taxed at a higher rate , thus the need for the T5 of Death!

Well yes I agree, it will be hard to part with our money to pay for what we will owe.
That is why I just want to get it done and over with, and pray this is a once in a lifetime thing.

I am not so worried about what they may owe me but what I may owe the tax man/woman after all is said and done ~ I think it will be a case of we won't know until we start filing our returns. I am very concerned.