|
Posted by sharx35 on August 28, 2007, 4:29 pm
Please log in for more thread options > DRS.Usenet@sengsational.com (DRS.Usenet@sengsational.com) writes:
>> ddl@danlan.*com (Dan Lanciani) wrote:
>>> A related question: is foreign tax withheld the same as
>>> foreign tax paid? Or does the withholding suggest that I
>>> should really be filing some kind of tax return with the
>>> foreign jurisdiction, computing a tax and possibly paying
>>> more than was withheld _or_ even getting a refund?
>> Dan, I called JPMorgan, who manages my ADR's and they said
>> it would cost one or two hundred dollars in fees to various
>> different entities to file for a refund, and even then you
>> could only get back 3%. So getting a refund was a
>> non-starter for my chump-change investment.
> That brings me back to my other question. Are you allowed
> a credit for foreign taxes that were withheld even though
> you might not have owed them and possibly could have had
> some of them refunded had you done the paper work?
Some Canadian "taxes" withheld from payments to U.S.
residents, e.g. pension, RRSP, and, for just a while longer,
interest, constitute "payment in lieu" of income tax, i.e.
the recipient's final obligation to the Canadian government
on account of the payment. My understanding is that U.S.
residents are able to use these amounts as "Foreign tax
paid" when filing their U.S. tax returns. (i.e. credits
indirectly applied to the U.S. tax owing for that income).
There is some provision for such tax payers to file certain
documents with the Canada Revenue Agency which would result
in the source payers reducing the amounts withheld. However,
in my experience, it's often better for the U.S. resident
involved to claim the Foreign "Tax" paid as a credit then to
go through the extensive rigmarole that a Canadian Sec. 217
return entail. YMMV, though. These comments only reflect my
personal observations.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap