By: Elena Grace Flores
In some countries, people are buying life insurance to lower down their taxes. It’s like – it’s better to spend the money on insurances rather than give it to the government perception. However, not all insurances can be tax free. In many countries, they are also taxable. So, do not waste your resources buying insurances you don’t really need. The money is better off for public services, education and healthcare for the less privilege.
Tax Free Insurances
Depending on your country’s tax deductible law, there’s a certain bracket or ceiling for the maximum amount of life insurance premiums that can be deducted from your taxable income. There are also cases that when paying more than one premiums the allowable non taxable amount for life insurance will not be applicable anymore.
Tax Deduction Eligibility
It is best to check your eligibility for tax-free insurance in your country because there are policies involved in availing these benefits depending on the laws of the land where you are. For example, if the amount of coverage is less than ten times the premium, in some countries – one can’t avail anymore of the tax-deductible offering.
There are also things like internal rate of return and disease or disability relief that can be verified locally just in case they can help in lowering down your government tax liability. Although let’s not forget that if we pay higher taxes, the more we can contribute in the progress of our country despite the existence of corruption.
It is now a worldwide knowledge that Manny Pacquiao, the great Filipino boxer is always in the watch list of the Bureau of Internal Revenue for tax purposes. This even reached to the point that Manny’s assets were garnished until he makes settlements. Well, as expected, the Pacquiao camp will not just pay a substantial amount without a fight and, here’s the result of the first bout with BIR:
MANILA, Philippines (UPDATED) – Rep. Manny Pacquiao apparently won the first round against the Bureau of Internal Revenue (BIR) after the Court of Tax Appeals (CTA) ordered the bureau to stop garnishing the boxer’s properties. http://www.abs-cbnnews.com/sports/04/23/14/pacquiao-wins-round-1-bir-tax-case
The condition bestowed by the court for Manny Pacquiao to pay a bond equivalent to the taxes owed is fair enough. It will serve as a guarantee that Manny can pay on time when the exact amount of the tax owed is determined despite the ongoing battle. May this continue to result into a mutually beneficial arrangement for both parties.