Originally posted on Facebook - Financial Planning Tip Oct 31, 2015 - 001 Establish an Emergency Fund.

Depending on your level of risk, (to some that is the way you feel about companies or investment products, such as banks, unit trusts (money market funds)), your age, your expected retirement income, your current financial circumstances, you can decide on an amount of money which you will save either weekly or monthly or a goal towards which you are working.These funds will be placed in the absolutely safest investment that you or your advisor can think of.

Then write down in your diary or notebook the next date you will assess both the value and the placement of funds or the events which will cause you to rethink your placement of funds, such as a salary increase!

These funds are the funds which you will access for the payments for which you have not planned!

Now these payments may differ from person to person and at the start, everything may seem to fall into the emergency category, however with time, you may rethink your strategies and create other savings plans as with experience, some of the emergencies may become predictable

Originally posted on Facebook - Oct 31, 2015 - Financial Planning Tip Oct 31, 2015 - 002 Adjusting the amount of funds in retirement accounts.

For some persons, using a retirement savings plan where they can commit to a small amount monthly and add an extra amount at the end of the year can work for a period of time. This is partially due to their assessment of risk at a point in time.

For some persons, they manage their initial assessment of risk by saving an amount equal to their investment in a retirement account in a safe investment. That way they are "covered".

Perhaps their subconscious is telling them that this is not all that it seems and in real terms should the rate of tax change in the future, then the retirement income may be much smaller than planned or their family life may be one where they may be planning to take care of the grand kids at some time in the future.

In this way, there may be costs that they are willing to save towards (for those days) and which they are not willing to risk!

Originally posted on Facebook: Financial Planning Tip - Oct 27, 2015 - 001 - (applies to Trinidad and Tobago)

Unless there is an extension, the deadline for filing the Income Tax return for Year of Income 2014 is October 31, 2015, that leaves 3 working days to submit the return without incurring a penalty.

See page 220 of the Act as filed on the BIR website: http://www.ird.gov.tt/…/IRD…/IncTaxandCorporationTaxActs.pdf 

Please consult your tax practitioner or financial planner as to advice which is relevant to your situation.

Remember to collect your invoice and receipt at the time of collecting your tax return or your copy, so that they too can be tax compliant!

Originally posted on Facebook Financial Planning Tip - Oct 27, 2015 -003 Ways to reduce your taxes -

Here is a link to site for the BIR - Trinidad and Tobago on ways to reduce your taxes. http://finance.gov.tt/services/income-tax/reducing-taxes/…

Please consult your tax practitioner or your financial planner! Remember to collect the invoice and the receipt on making the payment for the advice as they too have taxes to pay

Originally posted on Facebook Financial Planning Tip - Oct 27, 2015 - 004 (applies to Trinidad and Tobago) Wear and Tear on Assets acquired for use in the production of Income.

Here is a list of the rates which can be used with respect to calculating wear and tear on assets which have been used in the generation of Income: http://www.ird.gov.tt/…/IRDLegislati…/WEAR_TEAR_SCHEDULE.pdf

The assets are listed in four classes A, B, C, D, with classes A, B and C being applicable to almost everyone who is on Facebook, after all who owns aircraft either new or second hand and is on Facebook!

The list covers assets such as coolers in Class B ( 25 % wear and tear (reducing balance)); computers in Class C 33.3% ( same concept for calculating wear and tear).

Boats are in class B, remember there may be restrictions on the amount of wear and tear which may be claimed on this asset, so consult your tax practitioner or financial planner for advice as to your situation!

Please remember to collect the invoice and the receipt on making the payment to the tax practitioner for the advice which has been provided as they too have taxes to pay

Originally posted on Facebook: Financial Planning Tip - Oct 27, 2015-005 (applies to Trinidad and Tobago)

Here is a definition of non - resident and the opinion of the BIR based on law as to their tax status: "A non-resident is a person who is employed or a company that is operating in T&T for a period of less than 183 days in any year.

Non-residents are subject to tax on their total income ( in relation to Trinidad and Tobago activities and operations) unless they qualify under a specific legal exemption".

Please consult your tax practitioner for advice relevant to your situation!

ttconnect.gov.tt|  By Government of the Republic of Trinidad and Tobago

Originally posted on Facebook as Financial Planning Tip - Oct 27, 2015 - 002 (applies to Trinidad and Tobago) Payment of Taxes for Year of Income (YOI) 2015.

If you earn income aside from emolument income, at this time you should be aware of your estimated tax liability for corporation tax ( income tax) for the YOI 2015.

If you are liable to tax and have not made any payments, then the Board of Inland Revenue (BIR) has the option to assess your liability to taxation based on the income earned for 2014 ...and ask that you make payments based on that level of Income. If your income in 2014 was higher than that for 2015, then that may not be to your advantage.

There is the option to write to the BIR, asking for a reduction in the amount of Income Tax which is estimated to be paid for YOI 2015. Please attach to your letter support such as draft financial statements with comparative figures, that is, figures for the prior year as applicable. Remember to keep a copy of the letters and support which you send to the BIR for your files. 

Also there is the expectation that a minimum of 80% of your taxes due would be paid by Dec 31, 2015 and that you would communicate in writing if you expect that there is a shortfall in the current year. This communication would be your second official communication to the BIR for the YOI 2015.

This information when added together helps with the financial planning and tax compliance of the country!

We all have a part to play in this!  

Here is some assistance which was provided by the BIR, see the link: http://www.ird.gov.tt/n…/calculation-of-quarterly-instalment

Some of the above information was acquired through working in the tax department at Deloitte - 16 Victoria Avenue, Port of Spain, Trinidad and Tobago. This firm merged with the local firm of Coopers & Lybrand which was located on Charles Street, Port of Spain. Subsequent to the merger the newly formed firm traded under the name of Coopers & Lybrand, however the offices remained at Victoria Avenue, Port of Spain....

In hind sight, I would say that when firms merge, it takes time for the cultures of the companies to fit and for operating practices to become a way of life....

Also some of the information has been obtained through research, reading, and the development of tax planning knowledge and skills over time.

Copyright Jennifer N Bailey jennifernbailey24d@gmail.com