My_question_is: Applicable to both US and Canada
Subject: Canadian Loan Tax
Expert: [email protected]
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
