Nevada Incorporation for a Victoria BC Canadian -

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Dear David,
I am presently reading a book by Robert G. Allen called "Multiple =
Streams of Income". On page 296 he talks about estate planning and the =
"Nevada Corporation". It appears to be the ultimate estate planning tool =
and he writes that Stockholders, directors and officers are not required =
to live or hold meetings in Nevada, or even be a US citizen.=20
Would the Nevada Corporation be valid in Canada? If not is there any =
similiar corporation in Canada?=20
We are owners of two small apartment buildings for almost 25 years and =
we are thinking of buying some land with a few houses on it with a =
potential for subdivision. Would you recommend doing the purchase =
through a Limited company or a corportation?. We will have a partner in =
this venture.
SXXXXXXXXXX
Victoria, BC
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david ingram replies
If you really want to "try on" the Secrecy concepts, you should go to =
the Bahamas or the Grand Cayman's. However, I assure you that if the IRS =
or Revenue Canada wants to get the information, they can get it. =20
Back in February or March, 1984 I sat in the office of a senior =
executive of the Bank of Nova Scotia.  He took a call from the US Dept =
of Treasury while I was there and the gist of the call was that if the =
Bank of Nova Scotia did not give the details of one of their accounts in =
the Grand Cayman Islands, the US government would fine the B of NS =
$25,000 US per day.  The answer was that it was illegal under Grand =
Cayman Law for the Bank to give out that information. =20
Well, about $3,500,000 worth of fine later (levied against a Miami =
Florida branch of the Bank of Nova Scotia), the Bank gave up the =
information.  Forget about any thought that your information is secret =
in Nevada f the IRS or the CCRA wants the information under their mutual =
exchange rules.
Canadians only have to remember BRE X and the Brian Mulroney AIRBUS =
scandal to remember that The RCMP seized all of the Assets of David =
Walsh of BRE X fame.   $12,000,000 of the Assets were in the Bahamas =
which also has excellent bank secrecy laws.
Peter Bronfman got $6,000,000,000 of assets out of the supposedly secret =
Swiss Bank Accounts and the $5.00 in Brian Mulroney's Swiss Bank account =
also became public knowledge.
So, as a Canadian, you are wasting your money with a Nevada corporation =
and with all due respect to Robert Allen, I do not see any end benefits =
for an American who has a Delaware or Nevada Corporation to hold =
property.  A personal holding company in the US has a HIGHER tax rate =
than usual. The accountants and lawyers who set them up for people =
seeking an edge will always do better though.
On the other hand, if you are going into a property development with =
anyone other than an absolutely trusted spouse or blood relative, a =
corporation is a must.  It will not save you from outside creditors or =
others suing you as a director or for actions you take in your position =
(sort of like the driver of a car owned by a corporation - hit someone =
driving a corporate car and you can be held liable as the driver), it =
will protect you from inappropriate actions of your partner.  In other =
words, if sales are bad, and your partner commits to a $100,000 =
advertising budget which does not work, if you have not signed a =
personal guarantee, you cannot be sued personally for the corporation's =
debt. =20
 .
Please do NOT take your advice from a book or from a Q & A like this.  =
We can only give you direction. =20
I am also looking forward to see what our US accountant readers have to =
say about my opinion of Nevada Corporations for the typical person.
I never worry about stepping forward and putting my foot in it with =
these answers because someone always sets me straight (and I pass it on) =
if there is another look pr angle that I have missed.
So Happy New Year to everyone as well.
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver,  BC, CANADA, V7T 1A2
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321=20
[email protected]
www.centa.com www.david-ingram.com
Disclaimer:  This question has been answered without detailed =
information or consultation and is to be regarded only as general =
comment.   Nothing in this message is or should be construed as advice =
in any particular circumstances. No contract exists between the reader & =
the author and any and all non-contractual duties are expressly denied. =
All readers should obtain formal advice from a competent financial, or =
real estate planner or advisor & appropriately qualified legal =
practitioner, tax or immigration specialist in connection with personal =
or business affairs such as at www.centa.com. If you forward this =
message, this disclaimer must be included."
This from "ask an income tax and immigration and bankruptcy expert" from =
www.centa.com or www.jurock.com or www.featureweb.com. Canadian David =
Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems  for the =
United States, Canada, Mexico, Great Britain, the United Kingdom, =
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Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, =
Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and =
Canadian and Mexican and any of the 43 states with state tax returns, =
etc.
income tax wizard wizzard guru advisor specialist consultant taxman  =
Alaska,  Alabama,  Arkansas,  Arizona,  California,  Colorado, =
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Taxman and Tax Guru  and wizzard wizardYour name has been added to our =
email list because of an enquiry we have received,  we may not answer =
your question but=20
another similar question will be as we lump them.
You may find more answers at www.centa.com
David Ingram of the CEN-TA REALTY  Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
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