Tax Status
#1
BE Forum Addict
Thread Starter
Joined: Dec 2006
Location: Cowichan Valley, Vancouver Island, BC
Posts: 1,377
Tax Status
Hi there
I have a question regarding tax status and offshore trusts. I'm a British citizen but with dual nationality. I have a Canadian passport but have always lived in England. I'm planning to move to Vancouver in the next few months but was unsure as to my tax status when I arrive in Canada. I have been reading that immigrants to Canada can legally shelter any assets in an offshore trust for up to 5 years after arrival as Canada is an unconventional tax haven!
Does anybody know if it would be possible for me to do this or would I be treated as a Canadian citizen and therefore liable to be taxed as a Canadian due to my Canadian passport despite never having lived there?
In addition my father has been sponsored and now has permanent residence status. If I cannot set up an offshore trust for tax planning could I transfer all my shares etc to an offshore trust in his name?
Probably a question for a tax advisor but any comments very welcome...thanks...
I have a question regarding tax status and offshore trusts. I'm a British citizen but with dual nationality. I have a Canadian passport but have always lived in England. I'm planning to move to Vancouver in the next few months but was unsure as to my tax status when I arrive in Canada. I have been reading that immigrants to Canada can legally shelter any assets in an offshore trust for up to 5 years after arrival as Canada is an unconventional tax haven!
Does anybody know if it would be possible for me to do this or would I be treated as a Canadian citizen and therefore liable to be taxed as a Canadian due to my Canadian passport despite never having lived there?
In addition my father has been sponsored and now has permanent residence status. If I cannot set up an offshore trust for tax planning could I transfer all my shares etc to an offshore trust in his name?
Probably a question for a tax advisor but any comments very welcome...thanks...
#2
dont be afraid to reply
Joined: Nov 2004
Location: not so sunny vancouver
Posts: 70
Re: Tax Status
short and simple
what they dont know about they aint gonna find out about
what they dont know about they aint gonna find out about
#3
BE Forum Addict
Joined: Jan 2006
Posts: 1,010
Re: Tax Status
Originally Posted by skiboy10
Does anybody know if it would be possible for me to do this or would I be treated as a Canadian citizen and therefore liable to be taxed as a Canadian due to my Canadian passport despite never having lived there?
Also you have to have a lot of money in the trust to make it truly worthwhile. With all the costs I'd say north of CAD10M.
K.
#4
Re: Tax Status
Originally Posted by cov lad
short and simple
what they dont know about they aint gonna find out about
what they dont know about they aint gonna find out about
Canada's T1 General Income Tax and Benefit Return form asks, Did you own or hold foreign property at any time in [relevant year] with a total cost of more than CAN$100,000?
If you read the Guide that accompanies the tax return form, you find out that "foreign property" includes funds, shares, interest income, real property, etc.
If you answer, "Yes," to that question, you have to append to your income tax return a completed version of Form T1135, Foreign Income Verification Statement.
#5
BE Forum Addict
Joined: Jan 2006
Posts: 1,010
Re: Tax Status
Originally Posted by Judy in Calgary
If you read the Guide that accompanies the tax return form, you find out that "foreign property" includes funds, shares, interest income, real property, etc.
K.