Tom's Blog

I am so glad to be getting questions from my new friends in Australia. Let's start with a question from Maya.

Q: How different is your U.S taxation system to Australias,and will these differences be taken into account during the coaching programme when it commences? Eg How does your IRA differ to our Australian Superannuation?

A: Australia and most other countries, including the U.S., have net income tax systems. This means that you are taxed on your income, less any income that is specifically nontaxable (excluded) and less deductions. While the exclusions and deductions will be different from country to country, many of the basic principals remain the same. These are the principals we talk about in our bonus course on tax planning that comes with our course on Wealth Strategy.

For example, in the U.S., we have individual retirement accounts (IRAs), profit sharing plans, SEP's and pension plans. All of these are ways to defer income from today until some later year. In Australia, you have your Super and in Canada they have their RSSSP. All of these plans effectively function the same, in that the government controls how much and who can contribute to the plan, how the plan can invest its assets, when you can take money out of the plan and how the money you take out is taxed.

As we discuss in our bonus course on tax planning, most individuals rely heavily on these plans for retirement planning and tax planning. At ProVision, we believe there is a better way. That way is to create a Tax Strategy that produces permanent tax savings. Again, all countries have tax credits, income exclusions and deductions. While they may be different from country to country, the principals are the same in all countries. These are the principals we discuss in our bonus session on tax planning.

Of course, we recommend you find an experienced, creative tax strategist local to your country to be on your wealth team. Our course on Building Your Wealth Team that comes as part of our School of Wealth Strategy (http://www.provisionwealth.com/products and that was included in the course you purchased at the Chris Howard seminar teaches you how to find the right people for your team. When it comes to a tax professional, however, one thing you need to be sure of is that your tax strategist looks at taxes from a big picture, strategic point of view and focues on permanent, rather than temporary tax savings.

The value of such a tax professional in incalculable. You can save thousands of dollars in taxes that you will never have to repay that can be used to create millions of dollars in wealth and passive income.

I look forward to having you on our monthly coaching calls. Please be sure to ask lots of questions during those calls as well. I'm sure you are not the only person with your specific questions, so your questions help everyone.

Warmest regards,

Tom