Merlocke

To all TFP Canadians - this is my 2nd year now to be working in the tax reduction financial sector, and it's been an awesome experience.

Last year - I was able to help people save a TON of money on taxes, giving folks anywhere from $1600 to $7000 in their returns - so I'm willing to offer up my services to the TFP in return for the wonderful community they've introduced me to.

Feel free to PM me if you're interested.
Sorry - but again, the systems I've studied are only applicable to Canadian Taxpayer laws. But then again if you're an American, you don't pay as much tax as us folks up here in "Canuckistan".

Thanks to this system though - I've been able to make a start in my own investments in the foreign exchange market - which IS available to the Americans who ended up reading this thread anyway.

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-=[ Merlocke ]=-

prosequence

What kind of strategies do you use?

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And now here I stand because of you, Mister Anderson, because of you I'm no longer an agent of the system, because of you I've changed...

slimpi66y

all right buddy I will bite,

say in a hyperthetical situation, I am a single male supporting his parents financially, my annual income is about 100G,

what would you recommend I do? I already have the basic stuff in place, like RRSP

Merlocke

Profitable Charitable gift donations.
I'm going through a company based in Toronto that uses a great system to allow people to make returns on their taxes, and give cash to a charity at the same time.

I've just introduced it to my company (1250 in Vancouver alone, a few more across Canada) Like all good companies do - they're having legal and finance check things out before jumping in, and I've done my due dilligence as well. I've got letter from Fraser Milner Casgrain stating their positive legal option regarding this system - and they're huge - so I've got faith.

Plus the system I did last year did wonders for me.

I'm currently working on a website so that I can actually explain it a little better over the web - I'll keep you posted. Besides... best time to get into this thing is Oct/Nov timeline. If you're still interested - PM me and I'll let you know once the site with the explanation is up and running.

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Merlocke

I've got a system that will beat RRSP hands down ridiculously.
You'll be able to do all of the calculations yourself with your own scenario once I show you the way.

Drop me a PM and I can work on it with your numbers so you can see wether or not it will be beneficial to you.

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Lewis

I've heard of this, even over here, especially the rip offs over RRSP. Ever heard of a guy from Toronto called Dan White? He looks after tax problems as well. Pretty creative, and a really nice guy. Met him last year.

lemans

What is your system that will beat RRSP hands down? CAn you show me?

Merlocke

Slimpiggy - would you prefer that I do your calculations on the forum, or would you like me to PM them to you?

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Merlocke

Haven't met Dan White - but I've met Jerry White.
Not so nice, but he sure knows his stuff.

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Merlocke

Lemans - I need the following:
1) How much you currently have in your RRSP.
2) How much you currently make annually.
3) Which province do you live in.

If you'd rather keep it private - just PM the info to me and I'll show you the calculations. If You'd like to share it with the rest - just let me know as well and I'll perform the calculations here in the forum.

If we go into the forum - I'll give you a rudimentary calculation so we don't need to get into personal details regarding your tax information.

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slimpi66y

Hey Buddy, please post it, so we can all read it and think about it

say in a hyperthetical situation, I live in Ontario and make about 100K in employment income, please advice

Merlocke

I did leman's in a PM - but since you're willing to share...

Level 1b of my Financial Planning seminar (I do these live as well in BC)

Facts to keep in mind:
1) Ontario's Highest provincial Tax rating is around the 46.4% Tax level.
2) In accordance to the Tax act - you are allowed to donate and claim to a maximum of 75% of your gross annual income to charitable organizations.

I'm pasting a modified version of lemans to save myself the trouble of typing this all over again...

=====================================

The simplified route for saving money through a tax system is what I will share with you for now - without the requirement of having to sign a non disclosure agreement. (that'd be my level 2 seminar)

I have two methods - I will present to you the cleaner route.

At 100,000 - your maximum charitable donations as specified by the tax act - is at 75% of your gross annual wages. In your case - 75,000.

The system I will offer you is one through the Canadian Humanitarian Trust.

Essentially the architecture works as such.
1) Donor donates cash to Foundation A
2) Upon receipt of this donation - Foundation A presents the donor with a Tax receipt.

3) CHT (Canadian Humanitarian Trust) sees this donation and offers the donor the option to become a benefactor of the trust - provided they have shown the following:

a) A history of giving in the past.
b) Have donated a significant amount to Foundation A

4) Upon passing requirements to become a beneficiary - the donor receives a gift of pharmaceuticals from the Canadian Humanitarian Trust. The Donor is then given the choice to either keep these pharmaceuticals - or to donate them to the W.H.O. - World health organization. (you can take a guess that most people elect to donate)

5) The W.H.O presents the donor with a tax receipt of the value of the goods given.

6) The donor then applies these two tax receipts to his/her income tax at the end of the year.

=====================================

using your numbers - it looks like this:
75,000 max. (it's ok to go over a little - you can use it as a carry over for up to 5 years)

Donate $20,720 to Foundation A - from which you will receive a tax receipt for the dollar value of your donation and the option to become a beneficiary of the Trust.

The Trust will grant you (70 units of WHO essential medicine units) based on your level of donation to Foundation A. Which in turn - you donate to the WHO. (This goes to the United Nations to assist 3rd world countries with medical supplies for deworming, and removing parasites)

The two tax receipts will net you a total of $78,120 in tax credits. In ONT - the provincial rate of tax at the highest percentage is 46.4%.

calculation:
78,120 * 0.464 = $36,247.68 <-- this is roughly your tax return. Not taking into consideration any deductions you use for RRSPs, or other deductions or additions to your income.

Essentially - it's a philantrophic, moral, ethical, and most importantly Legal method of redirecting your tax dollars to a worthy cause - while netting you some tax based incentives in return. I've been doing these systems for 2 years now, and have the backings of folks who have been doing it for over 20 years.

If you have any questions about any of the specifics - let me know and I will show you the section in the Tax act that explains it. If you'd like to participate - drop me a PM and I can have further information sent your way. If I cannot answer the question myself - I'll be sure to forward it to my district manager from whom I will obtain an answer from and relay it to you folks.

whew... quite the explanation - but well worth the reading IMHO. The complete system is a 10 year plan - however I won't disclose that without first asking you to sign a non disclosure agreement that prevents you from duplicating my work and starting your own business, etc.

NOTE: the example I provided above is a MAXIMUM efficiency based model. By no means are you forced to participate at that level. The minimum amount (depending on date - but this is good until Sept 15th) is $2960. You can perform the same calculations on this number if you wish.

FYI provincial maximum tax rates for anyone that wants to apply this to their own numbers:

BC: 43.7
AB: 41.75
SASK: 44
MAN & ONT: 46.8
NS & PEI: 47.3
NFLD: 48.64

If you don't understand the system - let me know and I will crunch your numbers for you. (roughly) I will charge however if you want me to get into a much deeper level on a personal account. If any of you are in BC - I'm going to start holding my seminars (free for level1) shortly. Drop me a PM and I'll provide you with a schedule once one is available.

If folks are located elsewhere - let me know as well - and I'll see if I can accomodate for you with one of my colleages in another province. (if possible - I can't make promises for everywhere except for BC, AB, MAN, and ONT)

Lastly - if you have a pretty decent financial background. I'm looking to expand my base here in BC. If you're willing to learn - and want a part time venture, I can make it worth your while. There will be some stipulations though. If I do find any contacts via this forum - before I teach you anything - I will ask you to donate at least $20 to Halx for creating this place as thanks. If we are successful in expanding - I would love to be able to create a fund to give monthly to the TFP - which in fact - is my next project after completing the one I'm setting up for an Elementary school in Langley.

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Merlocke

Oh - if you've got any questions - please feel free to PM me.
Not everyone is comfortable with sharing how much they make, etc online.

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Yakk

So, you give money to a charity. You get a tax reciept.
This charity then gives you something (drugs) in return for this money that is worth more than your gift.
You then give the thing the charity gives you to the WHO. You get a tax reciept.

The initial quid-pro-quo gift transaction doesn't look like gifts, it looks like a sale. You aren't giving a gift to charity, you are buying the drugs in practice. The gifts look like a thinly veiled legal fiction that CCRA won't be amused by if they look at it.

Alternatively, you just got a large gift from a charity. This is income -- all gifts are income with very few exceptions. You then give it away and get a tax write off. But, you give away nothing that you didn't earn: the tax effects will be negative or null, not positive.

I am not a tax lawyer. But there isn't any such thing as a free lunch. We have a purchase hiding as a donation and/or a big chunk of undeclaried income.

Edit: Text in italics.

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Last edited by JHVH : 10-29-4004 BC at 09:00 PM. Reason: Time for a rest.

Merlocke

You give to the charity - correct.
A different Charity gives you a gift as a beneficiary of a trust.
The first donation is a seperate transaction from the other ones.
The people who control the trust watch who gives to the initial charity.

Since they're two seperate transactions - the CCRA has agreed that this is a functionally structured program within the boundaries of the tax act. They may elect to close it down in the future as they have before to others, but until they choose to do so, it is fair to use until the limit is hit. Tax shelters are limited in the amount that they are allowed to declare - which is how the government prevents excessive usage.

Furthermore - you cannot receive an advanced ruling on this system due to it's usage of Fair Market Value. Plus - for every method of Tax saving, the CCRA leaves an option to close the door in the future.

As a beneficiary of a trust - you receive the gift at fair market value. This does not count as income - similar to inheriting capital property from a will. If a relative had passed away and had passed on a vehicle that I didn't require - I could freely donate this and receive tax write offs.

Tax lawyers that have been doing systems like this for 20+ years designed this system to help the U.N. and provide tax benefits to Canadians. The regulations that you can only donate up to 75% of your gross income also prevents this system from being taken advantage of. It's not a free lunch forever, and it's not a unlimited money making machine either - just an option for tax reduction.

There are lots of other more well known methods to reduce taxable income. Limited Partnerships to reduce provincial taxes, RRSP loans, The Smith Manoeuvre (http://www.smithman.net/contact.html) which banks have been using for years. (don't buy the book btw - just go to the bank and ask about it, a financial planner there can set something up for you for free, just be sure to choose a solid system with low, but consistent interest rate higher than your mortgage payments)

The systems come and go - and new ones tend to get a little skepticism until they're more widespread. The interest paid on RRSP loans used to be tax deductible for a few years. Again - not a free lunch, as it's regulated by the RRSP deduction limits. RRSPs themselves weren't used for years until the Tax Brackets were introduced. Do a little research, and you'll see that my statements are true. I just wanted to share a new method with folks here.

Pros and Cons:

Pros: You don't need an HLOC and equity to be able to use this system.
Pros: If you've got some friends in the Doctors without Borders program - you'll be giving them a hand.

Cons: Eventually CCRA will change the laws if someone corrupts a system so don't count on things like this for long term financial planning.
Cons: You do have to put up apx $3000 minimum in to use this system.

The TINSTAAFL rule holds true. But there is such a thing as a small coupon to give people a bit of a break. Paying all of your taxes is a voluntary option. Even if you don't take my advice on this thread for the above, do yourself a favour and create a small home based business selling things on eBay for example - pay your family wages for helping you out, and save a little money by claiming your new home computer as a tax write off.

Cheers,
Merlocke

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duggy43

Hi Merlocke

I just heard about this tax saving method and one that used to be called Canadian Gift Initiative. Can you give me some more information? How do I contact the Humanitarian Trust and how do I make a donation?

Thanks
Duggy43

Merlocke

I actually promote 3 different systems, each of which are beneficial in different ways to different charities. Yes, some of them have higher returns than others as well if that's more important to you, but a lot of the people I help also do elect to assist the charity of their choice.

1) One system helps Hospitals and Churches
2) Another one helps 3rd world countries with Pharmaceuticals
3) The last one helps Canadians get jobs and education.

I do have a personal preference towards assisting our own country get jobs and have fewer homeless folks on the streets - but the choice is really up to you. If you're interested - drop me a line and I will assist you with the method of your choice.

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mike dunn

I am interested in finding the right system for me. I hope that I am not to late to invest and get a tax benifit this year.

mike dunn

I have been trying to get on to the canadian humanitarian trust web site,but it asks for a password.How do I get in touch with someone to help me.I want to take advantage of the tax savings this year.