Canadian Loan Tax

My_question_is: Applicable to both US and Canada
Subject: Canadian Loan Tax
Expert: taxman@centa.com
Date: Saturday March 03, 2007
Time: 04:24 PM -0500

QUESTION:

I recently applied over the internet for a loan. I was contacted by a lender and was told that they found a private lender out of Canada that had approved me. I am an American citizen. In order for me to obtain this loan, the Canadian lending company requested that I obtain insurance from their insurance company to secure the loan. The amount that I was to send was 750.00 USD. Once I sent this, the loan was supossed to me released to me and directly deposited into my account within 24 hour. After the time limit passed and the money was still not in my account, I contacted the lending company, and was then for the first time informed that I needed to pay an additional fee of nearly 600.00USD for Canadian taxes on the loan, before the loan would be released. Is this a standard practice in Canada? Do you have to pay taxes on a loan that you haven't even received yet or am I just being taken?
Thank you.

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david ingram replies:

I am afraid you are being taken on both counts.

Read the following page from PHONEBUSTERS at http://www.phonebusters.com/english/recognizeit.html


There is really nothing you can do about it other than to report the situation to Phonebusteres. - You will NOT get your money back but may get some satisfaction from adding to a list which may eventually capture and prosecute the perpetrators.


It's not always easy to spot phone scams, and new ones are invented every day.

If you suspect that you may be a target of fraud, or if you have already sent funds, don't be embarrassed - you're not alone.

If you want to report a fraud, or if you need more information, contact PhoneBusters:

Toll Free: 1-888-495-8501
Fax: (705) 494-4755

Toll Free Fax: 1-888-654-9426
Email: info@phonebusters.com

or contact the Competition Bureau

1-800-348-5358
Website: www.cb-bc.gc.ca
Email: compbureau@cb-bc.gc.ca

To report an economic crime on-line using RECOL, please click here or visit www.recol.ca



Good luck

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