CHC employees lose OETC
Join Date: Jan 2010
Location: Canada
Posts: 2
Likes: 0
Received 0 Likes
on
0 Posts
OETC
Hookersandblow: What forms are you referring to (for submission by 1 Feb)?
By the way, I don't think CHC has been all that forthcoming in explaining the reason that Canadian employees are no longer eligible for OETC. Here's how CHC explained the situation in a letter sent to employees. "Contrary to our earlier understanding, subsequent tax advice has revealed that the sale of CHC to a US entity has resulted in the loss of the OETC for employees as of 01 Jan 09". So how could this be?? After the sale of CHC to First Reserve, CHC came out with an official statement to employees in early 2009 confirming that they had conferred with Revenue Canada and there would be no change in OETC eligibility. So what has changed? What 'tax advice' is CHC speaking about? The details are scarce and the 'Tax Equalization" staff at CHC are tight lipped about this and have done nothing but stonewall employees who left in 2009. So I called the Revenue Canada agent that signed my OETC approval letter in Feb 09 and asked him for clarification regarding the lost OETC. He had no idea why CHC was saying that employees were no longer eligible for OETC. He said that there was no ruling/decision made by Revenue Canada that would change our eligibility. Hmmmmm.....
Could it be that CHC has reviewed their corporate tax strategy and determined that there is a more beneficial way to file taxes than originally intended, or perhaps as always intended, but never disclosed to revenue Canada (i.e, Revenue Canada loses out and Uncle Sam gains). This could explain CHC's announcement on OETC reversal, knowing that Revenue Canada will not honor OETC claims for 09 once they realize Uncle Sam is getting all the tax revenue. Yet CHC sent out confirmation to all affected employees early in 09 to reassure us that the OETC was protected. Now this. A loss of $1500 - $2000 for each month that former CHC employees worked for the company in 09. Regardless of whether the above spin proves to be true, CHC assured employees that the OETC would be in place for 09. Despite this reassurance, it looks like they will screw all the employees who left or were laid off in 09. A little short-sighted perhaps, especially when the offshore market ramps up a notch and CHC goes looking for talent. Good luck with that!
By the way, I don't think CHC has been all that forthcoming in explaining the reason that Canadian employees are no longer eligible for OETC. Here's how CHC explained the situation in a letter sent to employees. "Contrary to our earlier understanding, subsequent tax advice has revealed that the sale of CHC to a US entity has resulted in the loss of the OETC for employees as of 01 Jan 09". So how could this be?? After the sale of CHC to First Reserve, CHC came out with an official statement to employees in early 2009 confirming that they had conferred with Revenue Canada and there would be no change in OETC eligibility. So what has changed? What 'tax advice' is CHC speaking about? The details are scarce and the 'Tax Equalization" staff at CHC are tight lipped about this and have done nothing but stonewall employees who left in 2009. So I called the Revenue Canada agent that signed my OETC approval letter in Feb 09 and asked him for clarification regarding the lost OETC. He had no idea why CHC was saying that employees were no longer eligible for OETC. He said that there was no ruling/decision made by Revenue Canada that would change our eligibility. Hmmmmm.....
Could it be that CHC has reviewed their corporate tax strategy and determined that there is a more beneficial way to file taxes than originally intended, or perhaps as always intended, but never disclosed to revenue Canada (i.e, Revenue Canada loses out and Uncle Sam gains). This could explain CHC's announcement on OETC reversal, knowing that Revenue Canada will not honor OETC claims for 09 once they realize Uncle Sam is getting all the tax revenue. Yet CHC sent out confirmation to all affected employees early in 09 to reassure us that the OETC was protected. Now this. A loss of $1500 - $2000 for each month that former CHC employees worked for the company in 09. Regardless of whether the above spin proves to be true, CHC assured employees that the OETC would be in place for 09. Despite this reassurance, it looks like they will screw all the employees who left or were laid off in 09. A little short-sighted perhaps, especially when the offshore market ramps up a notch and CHC goes looking for talent. Good luck with that!
Join Date: Aug 2003
Location: LOS
Age: 67
Posts: 580
Likes: 0
Received 0 Likes
on
0 Posts
He had no idea why CHC was saying that employees were no longer eligible for OETC. He said that there was no ruling/decision made by Revenue Canada that would change our eligibility.
The plot thickens
Join Date: Nov 2000
Location: Toronto, Ontario, Canada
Posts: 9
Likes: 0
Received 0 Likes
on
0 Posts
OETC vs TEP
wingfling asked - "Just to confirm, CHC out their overwhelming generosity are going to pay the tax for us? And subsequent years?"
In fact there are Foreign Tax Credits for taxes paid on behalf of each employee working overseas. Part of the agreement is that these will be assigned back to the company for them to claim. The intent, as I see it is to offset the taxes to be paid to the greatest degree that they can.
What is not clear is whether the benefit to CHC is greater to them than the OETC was? Are they doing this out of "...overwhelming generosity..." or because they know that if they don't do something, an awful lot of employees would walk. There has to be a reason for the affected employees to travel overseas and spend time away from family and friends.
However, has CHC simply turned it's back on the OETC because they derive a greater benefit from getting all the FTCs using the TEP?
A few phone calls to the Canadian Revenue Agency might be in order, unfortunately the deadline to sign on is Feb 1st.
In fact there are Foreign Tax Credits for taxes paid on behalf of each employee working overseas. Part of the agreement is that these will be assigned back to the company for them to claim. The intent, as I see it is to offset the taxes to be paid to the greatest degree that they can.
What is not clear is whether the benefit to CHC is greater to them than the OETC was? Are they doing this out of "...overwhelming generosity..." or because they know that if they don't do something, an awful lot of employees would walk. There has to be a reason for the affected employees to travel overseas and spend time away from family and friends.
However, has CHC simply turned it's back on the OETC because they derive a greater benefit from getting all the FTCs using the TEP?
A few phone calls to the Canadian Revenue Agency might be in order, unfortunately the deadline to sign on is Feb 1st.
Join Date: Feb 2007
Location: Canada
Age: 60
Posts: 63
Likes: 0
Received 0 Likes
on
0 Posts
From what I understand about the TEP program for the alumni of CHC is that they will simply submit your 2009 income tax return to CRA on your behalf. They will use foreign tax credits, both federal and provincial, to make up for the loss of the OETC. I had the advantage of looking at a current employees tax return and that is what they did for him. The part I do not understand is that CHC may make up a difference from what they believe you would have received having had the advantage of the OETC and what you will receive from the foreign tax credits. I am not sure how this works other than perhaps Canada does not allow foreign credits for some countries. This would pose a problem and CHC then may compensate you, I don't know. The other is what CHC would calculate for an OETC amount? I have filed on my own, using the foreign tax credits available to me, I am awaiting on what CRA is going to say. The difference in monies is huge if I am not allowed the foreign tax credits.
Join Date: Feb 2010
Location: where the cold wind blows
Posts: 2
Likes: 0
Received 0 Likes
on
0 Posts
Am I missing something?
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?
bb - did you speak with the CHc tep people about this? I called them on a question or two and they didn't sound like they had heard too many negatives on this thing.
bb - did you speak with the CHc tep people about this? I called them on a question or two and they didn't sound like they had heard too many negatives on this thing.
Join Date: Jun 2007
Location: Nigeria
Posts: 76
Likes: 0
Received 0 Likes
on
0 Posts
Foreign tax credits, when claimed at the same time as the OETC, were greatly reduced. Without an OETC claim they become fully claimable. Unfortunately, for years CHC did not declare the foreign taxes paid as a taxable benefit, which they are, further muddying the tax waters.
Blackshark,
I didn't call as I'm not currently having a large issue with the TEP program.
Some appear to be having some unwanted surprises with their returns.
PWC has told a few of those with returns that they shouldn't spend that money as it may be making it's way back into CHC's pocket via the loan system CHC had us sign on to.
Rumour on the street is also that the cost of PWC will be wrapped up in our TEP program and in effect we will be bearing the cost of their involvement.
Last info I had from CHC with respect to the TEP was on Feb 17th. Lots of time for rumours to build.
I didn't call as I'm not currently having a large issue with the TEP program.
Some appear to be having some unwanted surprises with their returns.
PWC has told a few of those with returns that they shouldn't spend that money as it may be making it's way back into CHC's pocket via the loan system CHC had us sign on to.
Rumour on the street is also that the cost of PWC will be wrapped up in our TEP program and in effect we will be bearing the cost of their involvement.
Last info I had from CHC with respect to the TEP was on Feb 17th. Lots of time for rumours to build.
Join Date: Feb 2007
Location: Canada
Age: 60
Posts: 63
Likes: 0
Received 0 Likes
on
0 Posts
Blackshark said:
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.
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?
Join Date: Mar 2008
Location: Over the rainbow
Age: 51
Posts: 135
Likes: 0
Received 0 Likes
on
0 Posts
Hi Guys,
Are there any global guys here living in the UK/Europe? I was just wondering how it works out with the tax over your pay, working for a Canadian company, any info would be helpful.
Are there any global guys here living in the UK/Europe? I was just wondering how it works out with the tax over your pay, working for a Canadian company, any info would be helpful.
Join Date: Mar 2008
Location: Over the rainbow
Age: 51
Posts: 135
Likes: 0
Received 0 Likes
on
0 Posts
I've dug a little deeper and Global pay your tax to the country you work in for you, but does this mean your pay can't be double taxed if your country of residence has a tax agreement with the country you work in? Anybody?
You would need to check the tax rules of your own country and see which other countries they have tax agreements with.
Tax rules are very different in different nations, so it would be best if you checked with your home tax department first for clarification. Any advice offered here would be given in good faith, but would only be applicable to the country of the person giving it, and so might be totally incorrect for your situation.
Sorry I can't be of more help.
Tax rules are very different in different nations, so it would be best if you checked with your home tax department first for clarification. Any advice offered here would be given in good faith, but would only be applicable to the country of the person giving it, and so might be totally incorrect for your situation.
Sorry I can't be of more help.
