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Answers - Investing for Canadians - Know your Basic Tax Options for Higher Returns - A Layman's View
In Canada we basically have 3 separate tax options when investing our money. It is sometimes confusing and we battle the options of risk security verses rate of return. Unfortuna
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
tely most of us do not know of any other place to invest other than real estate property or at the bank.
The three types of investment income commonly available to Canadians are:
Interest Income - highest rate
The three types of investment income commonly available to Canadians are:
Interest Income - highest rate
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
f taxation (same category as your employment income) for the individual but considered the most safe in terms of investment security. Usually has the lowest rate of return. Savings accounts, Guaranteed Investment Certificates, Te
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
m Deposits and bonds are typical interest earning instruments. They are considered "debt instruments" as when you deposit your money you are in essence lending money from a borrower (bank, government, private investment)
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
for an agreed rate of return.
Dividend Income - preferred tax rate based on income earned via profits generated from sales produced by the company you invested in. Many stocks have dividend payo
Dividend Income - preferred tax rate based on income earned via profits generated from sales produced by the company you invested in. Many stocks have dividend payo
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
ts that can be used as income without depleting the capital investment. Income earned from rental property would qualify in this category. Dividend income is usually taxed on an annual basis.
Capital Gains - pre
Capital Gains - pre
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
erred tax rate based on the growth of the investment. Stocks, investment property and Mutual Funds typically fall under this category. There is a personal exemption from capital gains tax if you sell your own home however there a
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
e some guidelines and restrictions best left to an investment professional to sort out for you. Depending on the investment structure you may be taxed annually or you may only be taxed at the time of disposition (sell for a profi
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
).
I think of personal investment options much like owning your own store. I hope this simplified analogy makes sense for you.
1) When you buy the property, including land and building, you have made a
I think of personal investment options much like owning your own store. I hope this simplified analogy makes sense for you.
1) When you buy the property, including land and building, you have made a
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
apital investment. When you sell the property for a profit (property value increases), the profit from the sale of the property is considered a capital gain and taxed on the profit at ap
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
roximately 50% of the rate you would pay if you invested in a GIC or the tax that you pay on your paycheck.
2) The store sells goods. The profit from the selling of goods is considered a dividend payment which h
2) The store sells goods. The profit from the selling of goods is considered a dividend payment which h
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
as a reduced tax structure compared to taxation on interest or job income.
3) When you take a salary or if you then take the money that you profited and leave the money in the bank where interest accumulates. Th
3) When you take a salary or if you then take the money that you profited and leave the money in the bank where interest accumulates. Th
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
s is considered interest or employment income and is fully taxable at the highest rate.
In Canada we also have a well used tax shelter option is called a Register Retirement Savings Plan (RRSP).
In Canada we also have a well used tax shelter option is called a Register Retirement Savings Plan (RRSP).
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
First of all, an RRSP is not an investment, it's a tax shelter. This tax shelter allows one to reduce their current tax rate by deferring income until it is withdrawn at a later date. It's a great advantage to on
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
in the immediate tax year as the investment is left to grow untaxed and the rule of compounding works to your advantage.
The biggest downfall to an RRSP is that it is considered income when it is withdrawn and
The biggest downfall to an RRSP is that it is considered income when it is withdrawn and
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
strong>is subject to the highest form of taxation...all of it, not just the profit. The tax break that the Canadian government gives you now is on income therefore the taxation rate when it is withdrawn is in the same ca
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
egory.
So what's the answer? Well, there are a number of strategies that can be employed to reduce your taxation. It is best to talk frankly with either an investment professional at the bank or at an established investment firm
So what's the answer? Well, there are a number of strategies that can be employed to reduce your taxation. It is best to talk frankly with either an investment professional at the bank or at an established investment firm
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
With all the computer investment programs that are available today they can draw out a tax strategy scenario that is beneficial for you now and far in the future. Don't feel burdened to invest with them until you are comfortable
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
Also, the internet is a great resource and one would benefit by doing their own research.
If one is a little more profit orientated and enjoys the risk, they can also invest privately, (private / municipal bonds, real property,
If one is a little more profit orientated and enjoys the risk, they can also invest privately, (private / municipal bonds, real property,
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
group real estate investments and many other options) but you must determine what makes you feel comfortable. At the end of the day it is your money and you want to understand the general direction and possible results in the end
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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