Question by DennisCOSMIC: Do you have to pay income tax on a loan in Canada?
I have a loan coming from canada and I was wondering if I had to pay income tax on it? They are charging me taxes for some reason.
I am not trying to pay taxes with a loan. I am being charged taxes for having a loan from Canada. I wanted to know if this is accurate.
Best answer:
Answer by Scott
Income is income. They don’t care where it comes from.
Give your answer to this question below!
Personally, I can’t see how a loan could be consdired income ! It is not income.
Its so basic. Income means the gain that you increased in wealth. A loan is not an increase in wealth since you owe at least that same amount of money back, and probably more due to interest fees. No one can construe the loan amount as an increase in wealth. Add what you borrowed to the negative amount you owe, and you see, its not income.
100% scam.
There is no loan.
There is only a scammer trying to steal your hard-earned money.
The next email will be from another of the scammer’s fake names and free email addresses and will demand you pay for made-up loan fees and taxes, in cash, and only by Western Union or moneygram.
Western Union and moneygram do not verify anything on the form the sender fills out, not the name, not the street address, not the country, not even the gender of the receiver, it all means absolutely nothing. The clerk will not bother to check ID and will simply hand off your cash to whomever walks in the door with the MTCN# and question/answer. Neither company will tell the sender who picked up the cash, at what store location or even in what country your money walked out the door. Neither company has any kind of refund policy, money sent is money gone forever.
Now that you have responded to a scammer, you are on his ‘potential sucker’ list, he will try again to separate you from your cash. He will send you more emails from his other free email addresses using another of his fake names with all kinds of stories of cheap loans, great jobs, lottery winnings, millions in the bank and desperate, lonely, sexy singles. He will sell your email address to all his scamming buddies who will also send you dozens of fake emails all with the exact same goal, you sending them your cash via Western Union or moneygram.
You could post up the email address and the emails themselves that the scammer is using, it will help make your post more googlable for other suspicious potential victims to find when looking for information.
Do you know how to check the header of a received email? If not, you could google for information. Being able to read the header to determine the geographic location an email originated from will help you weed out the most obvious scams and scammers. Then delete and block that scammer. Don’t bother to tell him that you know he is a scammer, it isn’t worth your effort. He has one job in life, convincing victims to send him their hard-earned cash.
Whenever suspicious or just plain curious, google everything, website addresses, names used, companies mentioned, phone numbers given, all email addresses, even sentences from the emails as you might be unpleasantly surprised at what you find already posted online. You can also post/ask here and every scam-warner-anti-fraud-busting site you can find before taking a chance and losing money to a scammer.
If you google “fake loan Western Union”, “fraud loan company scam” or something similar you will find hundreds of posts of victims and near-victims of this type of scam.
The short answer is no, it’s not accurate.
The long answer is that you pay taxes to your country of residence. As you are not a Canadian resident, Canadian income taxes have no impact on you. Even if loans were taxable to Canadians (which they’re not), it’s not applicable to you because you’re not a resident.
If you really want to know the income tax rules for the loan (any loan), you need to check with your own country.
However, I agree with the other posters. You are being scammed. Don’t pay anything up front. If people are asking you to pay some tax or fee, just say “No problem. Deduct it off my proceeds and send me the difference.” They’ll soon lose interest in you.