Thursday, September 24, 2015

Wynne is going to follow you into the grave for the last cent you made in life

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Ontario Director, Canadian Taxpayers Federation


Nothing is certain but death and taxes, and it seems that Premier Kathleen Wynne is managing to make both worse for Ontarians.
On January 1, 2015, onerous new estate rules took effect in Ontario.
When a person dies, their assets are managed by an estate representative. In most cases, that person is the grieving spouse or children.
Ontario has the highest Estate Administration Tax (EAT) the country. The EAT was previously called a "probate fee," but in this rare instance of honesty the Ontario government has changed the name to reflect what it really is -- an estate tax.
The EAT rate is currently $5 per thousand for the first $50,000 of an estate, and $15 for each $1,000 after that. So an estate valued at $240,000 would pay a $3,100 in EAT. A $1 million estate would pay an EAT of $14,500. In other provinces, the rate is a flat set amount, or does not exceed $7 per $1,000 compared to Ontario's $15.
And of course, the EAT is paid on top of the taxes that Ontarians pay on the investments and assets they spend their whole lives working hard to acquire and leave to their children.
Starting this past January, the rules around becoming an estate representative changed to create a great deal more work, and increased liability.
Under the old rules, staff at the local court would assess and collect the Estate Administration Tax based on a sworn statement listing the deceased's assets and their value. Under the new rules, the tax is not collected at the court. Now, the representative must apply for the Certificate of Appointment, and within 90 days, submit an "Estate information Return" to the Ministry of Finance. The Return must include a breakdown of the fair market value of each asset owned by the deceased on the date of death, and a detailed description of the assets. This requires onerous appraisals and valuations, and the detailed collection of information.
If the estate representation finds a mistake in the Return, a correction must be made within 30 days.
Failure to comply with these new burdensome rules can result in fines starting at$1,000, imprisonment for up to two years, or both...More

Saturday, September 19, 2015

A sign of things to come...




BY ANTONELLA ARTUSO, QUEEN'S PARK BUREAU CHIEF

FIRST POSTED: FRIDAY, SEPTEMBER 18, 2015 10:13 AM EDT | UPDATED: FRIDAY, SEPTEMBER 18, 2015 05:40 PM EDT


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The partial privatization of Hydro One will come with some big private sector-style paycheques.

A preliminary prospectus for the initial public offering (IPO) released Friday notes the new CEO will be eligible for up to $4 million a year — $850,000 in base salary and $3.15 million in incentives.

Finance Minister Charles Sousa and Energy Minister Bob Chiarelli defended the eye-popping payout which far surpasses any salary revealed in this year’s public sector Sunshine List.

“Right now, the compensation’s comparable to other executives,” Sousa said, noting most of the money will come only if certain targets are achieved.

Those targets include good dividends, a strong safety record and, most importantly, excellent customer service, Chiarelli said.

NDP MPP Peter Tabuns, whose party opposes the sale, said the salary is the equivalent of winning the lottery.

He predicted hydro prices will rise as the publicly owned Hydro One is sold off in chunks to the private sector.

Chiarelli said Hydro One won’t set electricity rates, and he expects private sector discipline to keep costs under control at the utility.

PC MPP Todd Smith said the total annual compensation for five executives at the revamped Hydro One will be $24 million.

“This is all about paying huge, exorbitant salaries, pensions, severances, gold-plated pension plans to these big executives,” Smith said.

It’s anticipated the Hydro One IPO will be completed this year. More

Sunday, September 13, 2015

An Unholy love affair: What is it between Wynne and the auto insurance industry in Ontario?


Hard road for [Ontario] car crash victims: Why is the Ontario government taking away money they deserve and transferring it to the insurance industry?

BY ALAN SHANOFF, TORONTO SUN




For the past five years the Ontario government has been taking steps to transfer money from victims of auto accidents to insurance companies.

We’ve seen drastic decreases in no-fault accident benefits.

To compound this, last month the Ontario government issued a regulation increasing deductibles that apply when people injured in auto accidents sue the person or persons who caused the accident.

This was done quietly, without any debate or meaningful notice.

These deductibles apply to accident victims who have suffered serious injuries and want to sue the at-fault driver or vehicle owner for negligence.

Only victims who can establish they have suffered a “permanent serious impairment of an important physical, mental or psychological function” are entitled to sue to recover damages not covered by no-fault accident benefits.

It isn’t easy to meet this threshold. Medical evidence must be provided.

So these victims haven’t suffered minor or nuisance sorts of injuries but serious ones.

Prior to the change in law last month, the Ontario government mandated that any pain and suffering damage award to an accident victim of $100,000 or less would be reduced by a deductible of $30,000.

That amount is an arbitrary, made-up number that takes money out of the pockets of accident victims.

For example, if a jury awards an accident victim $50,000 in damages, the judge will apply the deductible so that the insurance company only has to pay $20,000.

Of course, jurors aren’t told about the existence of the deductible for fear they might bump up their awards.

As of last month, the deductible has been increased to $36,540. So now the recipient of a $50,000 award will only receive $13,460.

The recipient of a $100,000 award will only receive $63,460.

There’s no other area of law where such a deductible applies. It only occurs in auto accident cases.

To make matters worse, the Ontario government has also decided to increase the $100,000 threshold for the application of the deductible.

It has been bumped up to $121,799 ... More