Blackshark said:
Hmm, SARBlade's explanation sounds different from what I understand the process to be. the way I understand it is that CHC gives you the OETC benefit but takes back the foreign tax credit. The way I figure it, if you worked in a country with low taxes and your foreign tax credit isn't much to speak of getting the OETC benfit would be huge. Canada has some pretty massive taxes. So i'm betting those who worked most everywhere else would probably be better off with the OETC than the foreign tax credit. Right?
Sorry, yeah, this is true as well. I'm not sure the law involved with all of this, but the intent is not to penalize the employee for loss of OETC. If that means the benefit of foreign tax credit then it is applied, but if the OETC was beneficial, then CHC will pay you that amount. and they get the benefit of your foreign tax credit, hence the TEP and you signing that over. I, as a CHC Alumni (their words) got the package, but opted not to have them do my taxes as the foreign taxes I paid were enough to cover the OETC. Hope that is a little clearer. BTW, the foreign tax form you fill out, the taxes paid are considered non-business, unless you personally had a business in that country.