Pensions: Taxpayers May Lose Life Savings - Part II of II :CCRA SOTW
Join against pension ruling, victims urged!
Court decision could be devastating for retirees setting up a business
Here's Part I of the Tax Tale:
http://groups.google.com/group/can.taxes/browse_thread/thread/367cc1eabe77438d/b...#b27230737698c31b
Sep 04, 2007 04:30 AM
James Daw
Business Columnist
Former teachers and public servants who have moved their retirement
savings to the pension plans of small businesses are being urged to
unite. Acting alone, they could have much to lose.
The Canada Revenue Agency now has court backing to revoke registration
of a pension plan if the tax collector can show a related new business
was not successful enough to pay a salary to the venture's employee,
the plan member.
Losing registration - back to the date of the plan's inception - could
trigger devastating tax bills, eat up future investment earnings with
taxes and cut off protection from provincial or federal pension
regulators.