Happy New Year! The Government is imposing various tax increases for all Quebecers in 2012. An increase in the QST, increase in the QPP contribution rate, increase in the health contribution fund, increase in gas tax, etc…
Now, more than ever it’s extremely important to seek professional advice and take advantage of all possible tax deductions available to you.
For more information on the various tax increases, please watch this short video.
An overtaxed society can create a deficient economy when the populous is burdened with the extra expenses of excessive tax. Funds used here can be used on a more productive level or a healthier happier lifestyle. The journey from which the sum of $200 takes from pay check to the last penny is likely taxed in more ways than we realize and below is compromising example.
To begin with, let’s remove the 20% income tax leaving $160.00
From there, a modest 3% for old age pension contribution leaving $152.00 Next, a modest 2% for EI contribution which leaves $148.96 Then of course for the benefit of this example non-food purchases are made from the remaining $148.96 which of course are taxed a further 14% leaving an actual spending net of $128.10 from the original $200. Calculate this example over a year’s time and the average citizen could dish out close to $1,000 in taxes just on this $200 monthly allowance. And this is not inclusive with home expenses, heating, vehicle, gas, clothing, gifts etc.
Additionally upon retirement our little nest egg is taxed once again. Not only does this compound the original taxes taken years prior from the original $200, taxes 30 years later are far higher. Now, if we the people can find ways to adapt our living habits and by force mind you to accommodate this excessive taxing and/or create ways to generate additional income, then why is it so difficult for government to apply the same effort?
Each year the same questions arise within government. How can they raise more money? How can they pay for this service or that project? Yet, each time the answers fall under the same category or are mentioned on their list of solutions; tax the people. A simple and effortless solution is often considered ideal when the labouring efforts of others are involved isn’t it?
Alternative yet Simple Methods
An ideal start might be to revamp the way government and its branching departments spend our tax dollars in the first place. Needless expensive ad campaigns, excessive monthly allowable budgets inclusive with expensive dinner engagements, gas allowance, private travel etc. Do they really need to have that $200 meal? Is that really necessary when lower income earners foot the bill?
With a prosperous income to begin with why is there a need to use income from the people for their extravagant business trips and dinners? An ideal way to re-direct this money back to the people would be to account for it themselves and apply them as business expenses when filing taxes like the rest of the population.
There are far too many small government offices and positions branched out into too many different departments. An example: a simple phone call to any municipality and the prompts are endless as to which department you seek. Multi-tasking within these positions would definitely generate money.
Reason being, the regular job market which is another disturbing problem has developed into a endless array of multi-tasking jobs but are all categorized under one single job description. Yet, our wages are based on a pay scale which is outdated and almost pathetic.
If we the people can adapt to the demanding needs of a competitive job market saturated with multi-tasking jobs, then the thousands of needless departments within government can apply these same methods. This is how companies in Canada survive. This is how government can re-modify their labour costs using the savings to benefit in needed areas that seem to arise year after year.
Government needs to address these issues as it’s becoming more difficult to acquire simple jobs and simple housing for the average citizen who can’t afford post secondary education. How does one acquire experience when companies large and small refuse to train even for the simplest positions?
Today’s society and government is far too demanding, far too selfish focusing more on profits gained from citizens with the perfect credit rating, the healthy bank account and that over qualified resume.
Focusing on the whole picture here, a little leniency, human compassion and an overall team effort can go a long way when creating a healthy economy and a balanced government.
Author: Kellie Hastings
Researcher and writer of articles pertaining to health, anti-aging, pollution, and public/health awareness. For health concerns on GE Foods, Cloned animal foods, GE Food Watch List, Diseased Factory Farms- videos and FDA corruption visit [http://www.discovery-health.org]
In Québec, everyone must be covered by prescription drug insurance. Two types of insurance plans offer this coverage:
If you are eligible for a private plan, you must join that plan and provide coverage for your spouse and children. Only those persons who are not eligible for a private plan must register for the Public Prescription Drug Insurance Plan.
Administered by the Régie de l’assurance maladie du Québec, the Public Prescription Drug Insurance Plan is a government insurance plan offering basic prescription drug coverage. It was set up in 1997 to cover all Quebecers who are not eligible for a private plan.
The insurance plan helps cover a portion of the cost of prescription drugs purchased at the pharmacy. Below is an example:
| EXAMPLE A $60 prescription presented at the pharmacy on July 1, 2011 |
|||
Monthly deductible |
Monthly
|
Contribution paid by the insured person |
Amount paid by the Régie |
| Fixed amount paid when making the first drug purchase during the month. | 32% of the cost of the prescription minus the deductible | Total of the deductible plus the co-insurance | Cost of the prescription minus the contribution by the insured person |
|
$16 |
$60 – $16 = $44 x 32 % = $14.08 |
$16 + $14.08 = $30.08 |
$60 - $30.08 = $29.92 |
Generally speaking, persons covered by the public plan must pay a premium, whether or not they purchase prescription drugs. The premium is collected every year by the ministère du Revenu du Québec when income tax returns are filed. For example, the premium for 2011 will be collected in the spring 2012, when income tax returns for the 2011 taxation year are filed. Persons who pay a premium to the public plan must complete Schedule K of their Québec income tax return.
The amount of the annual premium varies from $0 to $563 per adult, depending on net family income. This amount is in effect from July 1, 2011 to June 30, 2012.
Source – Regie de l’assurance maladie Quebec: http://www.ramq.gouv.qc.ca
As announced in the March 2010 Provincial Budget, the Solidarity Tax Credit replaced the following:
To claim the solidarity tax credit, an individual must:
Only one solidarity tax credit claim can be made per couple. To receive the tax credit payments, individuals must be registered for direct deposit. Individuals who are not already registered for direct deposit can register online using the Register for Direct Deposit service or submit their request for direct deposit along with their 2010 Personal Income Tax filing.
Payments for this new refundable tax credit will be paid once a month.
Make sure to count all your pennies because you are going to need them!
As of January 1, 2011 there have been a broad range of tax increases for all Quebecers and those individuals who live on the island of Montreal. Below is a list of all increases:
| 2011 Corporate Income Tax Rates | |||
| General | Small Business | Business Limit | |
| Federal | 16.5% | 11% | $500,000 |
| Alberta | 10% | 3% | $500,000 |
| BC | 10% | 2.5% | $500,000 |
| Manitoba | 12% | 0% | $400,000 |
| New Brunswick | 11% / 10% | 5% | $500,000 |
| Newfoundland & Labrador | 14% | 4% | $500,000 |
| Nova Scotia | 16% | 5% | $400,000 |
| Northwest Territories | 11.5% | 4% | $500,000 |
| Nunavut | 12% | 4% | $500,000 |
| Ontario | 12%/11.5% | 4.5% | $500,000 |
| Prince Edward Island | 16% | 1% | $500,000 |
| Québec | 11.9% | 8% | $500,000 |
| Saskatchewan | 12% | 4.5% | $500,000 |
| Yukon | 15% | 4% | $400,000 |
Both salaries and dividends are taxed at different rates on a personal level.
On January 1, 2011, the rate of the Québec sales tax will rise from 7.5% to 8.5%. The new rate will apply to taxable supplies for which the QST will be payable as of January 1, 2011.
The rules for determining when the QST will apply at the rate of 8.5% depend on the nature of the good or service supplied and the type of supply made.
For more information on how this increase affects your business, please consult Revenu Quebec’s website link.
The “Welcome Tax” is a land transfer tax or in French, commonly referred to in Montreal as the “taxe de bienvenue”.
Since January 1, 1992, every Quebec municipality must collect duties on the transfer of any immovable situated within its territory. This tax is payable by the buyer and is calculated as follows:
Example:
If a property is sold for $429,000. The taxes payable to the municipality will be:
Total taxes payable is $4,935.
Full details, please refer to the City of Montreal’s Website Duties on transfers of immovables.
Last month, Quebec Finance Minister Raymond Bachand gave up the idea of charging user fees every time a patient sees a doctor and is instead searching for new revenues to finance Quebec’s health care system. Bachand had described the $25 user fee as a deductible for the doctor visit and it would be assessed when the individual pays their income tax the following year.
The user fees were expected to raise an additional $500 million per year in extra revenues.
Doctors and nurses associations said the charge would discourage people from seeing a doctor. Other party leaders opposed the idea as well saying that both the rich and poor would be paying the same amount for each visit.
Although user fees may have been abolished for now, don’t forget about the new “Health Contribution”. Quebecers are now paying a $25 “Health Contribution” this year, rising to $100 next year and then $200 in 2012.
The real solution to Quebec’s health care woes is to make people responsible for a portion of the health care services they use, and the principle behind a user fee does just that. The fee would help individuals to make reasonable choices when using medical services and provide more incentive to choose healthier lifestyles.
Raising taxes with a new “Health Contribution”, provides no incentive and does not solve the underlying problem with the health care system.
Last month, Quebec Finance Minister Raymond Bachand gave up the idea of charging user fees every time a patient sees a doctor and is instead searching for new revenues to finance Quebec’s health care system. Bachand had described the $25 user fee as a deductible for the doctor visit and it would be assessed when the individual pays their income tax the following year.
The user fees were expected to raise an additional $500 million per year in extra revenues.
Doctors and nurses associations said the charge would discourage people from seeing a doctor. Other party leaders opposed the idea as well saying that both the rich and poor would be paying the same amount for each visit.
Although user fees may have been abolished for now, don’t forget about the new “Health Contribution”. Quebecers are now paying a $25 “Health Contribution” this year, rising to $100 next year and then $200 in 2012.
The real solution to Quebec’s health care woes is to make people responsible for a portion of the health care services they use, and the principle behind a user fee does just that. The fee would help individuals to make reasonable choices when using medical services and provide more incentive to choose healthier lifestyles.
Raising taxes with a new “Health Contribution”, provides no incentive and does not solve the underlying problem with the healthcare system.
The Releve-4 is an official Revenu Quebec tax slip prepared by the landlord of a residential rental unit and issued to the tenant who was the occupant as of December 31 of the prior year. The value in the box A– “Impot fonciers relatifs au logements” represents the combination of property tax and school tax allocated to your dwelling which was included in your rent.
All tenants may be entitled to a Property Tax Refund if their family income does not exceed $50,411 for the tax year of 2009.
If you are a tenant and have not received your Releve-4, kindly ask your landlord for this document.
If you are a landlord and have not issued this document to your tenants, please do so immediately. The deadline to issue this document was February 28. Please remember that a copy of this Releve-4 and the RL-4 Summary must be mailed to Revenu Quebec. Failure to do so, may result in penalties of $25 per day up to a maximum of $2,500.