Hello,
I am a Canadian citizen currently married to an Indonesian citizen. We are
living in the United Kingdom, but the vast majority of our assets are held
in
accounts in the United States under my name only.
We are thinking of moving to Canada, and my wife would obtain her permanent
residency via the family sponsorship program. I have read elsewhere that it
is
possible for new immigrants to Canada to effectively shield their offshore
assets from Canadian taxes (i.e. no taxes on dividends, interest payments,
and/or capital gains taxes). Does this still apply if I transfer the
majority
of assets to accounts that are under my wife's name prior to us immigrating,
and
then leaving them in the US? We are not US citizens nor do we hold a
greencard. As well, I have lived outside Canada continously for more than
10
years.
Many thanks in advance.
As well, would you happen to do UK taxes as well? I'll have quite a
complicated
tax return if we do immigrate to Canada, so I was wondering if you'd be
able to
help in filing my Canadian and UK taxes.
Thanks.
-----------------------------------
david ingram replies:
As far as I know it does not work if the settler had ever lived in Canada.
It may be semantics, but you are clearly the settler even if it goes through
your wife.
Mark Serbinski CA CPA does get involved in Offshore Investment Trusts.
You can see more at:
http://www.serbinski.com/Amincanada/Immigration_Trusts/immigration_trusts.ht
ml
My personal specialty is US / Canadian, Canadian / New Zealand, Canadian
/Australia / and Canadian /Great Britain.
However, Great Britain is my "least" specialty.
I have seen the CRA (old Revenue Canada) turn over a dozen Immigrant Trusts
so far. With the money in the US and your wife an Indonesian Citizen, It
just does not work because there are tax treaties with Great Britain, the US
and Indonesia.
Hope this helps.
The following is an old answer I gave some time ago
My_question_is: Canadian-specific
Subject: Offshore immigrant trust requirements
Expert: taxman at centa.com
Date: Monday April 24, 2006
Time: 12:08 PM -0700
QUESTION:
Good morning,
1. Could you please tell me what are the Canadian law requirements for an
Offshore immigrant trust?
Many thanks and best regards,
--------------------------------
david ingram replies
I stay away from Offshore immigrant trusts. I have seen too many that did
not work.
The following old answer might help you:
-----------------------------------------
QUESTION: We have just received our permanent residency to move to Canada
from England. I would like to put 90,000 pounds into a Guernsey offshore
account. This is because the interest rate is 5.10 percent. When living in
Canada when i send my tax forms in would i have to mention the interest i
made on my tax form. Whether i bring the money into Canada or leave it
still
in the account. The interest would be equivalent to 10,000 Canadian
dollars. And if i was taxed on this, what would be the percentage.
Thank you
---------------------------------------------------------------------------
david ingram replies:
New Immigrants to Canada are allowed to set up a five year immigrant trust
which allows them to accumulate money within the trust tax free for that
five year period.
However, the Canada Revenue Agency (CRA) has a bad habit of breaking the
trusts. In the last two years I have had two South Africans with $400,000
and $1,000,000 tax bills because the CRA deemed that their immigrant trusts
did not qualify.
I doubt that it is worth your effort for 90,000 pounds as the setting up and
management fees would be equal to the amount of tax you would pay.
The tax on $10,000 Canadian split between two spouses will depend upon what
other income they have.
Our marginal tax rates are approximately
25% on amounts under $30,000
30% from $30,000 to $60,000
35% from $60,000 to $100,000
44% over $100,000
Every province and territory (13) has a different local tax rate so there
are likely 60 different figures.
The foregoing is very approximate but is sufficient for you to figure out an
approximate tax on $10,000.
If you are going to deal with the concept of an Immigrant Trust, do NOT deal
with someone you find with an Immigrant Trust website. My suggestion would
be to consult with one of the BIG International Accounting Firms such as
KPMG, Deloitte, etc.
Answers to this and other similar questions can be obtained free on Air
every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram am a
permanent guest on Fred Snyder of Dundee Wealth Managers' LIVE talk show
called "ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the internet
at
www.600AM.com <http://www.600am.com/>
Call (604) 280-0600 to have your question answered. BC listeners can also
call 1-866-778-0600.
Callers to the show and questioners on this board can also attend the
Thursday Night seminars on finance and making your Canadian Mortgage
Interest deductible.
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
Home office at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 9 AM to 9 PM 7 days a week (please do not fax or phone
outside of those hours as this is a home office)
email to taxman at centa.com <mailto:taxman at centa.com>
www.centa.com <http://www.centa.com/> www.david-ingram.com
<www.david-ingram.com/">http://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 and the author and any
and all non-contractual duties are expressly denied. All readers should
obtain formal advice from a competent and appropriately qualified legal
practitioner or tax specialist in connection with personal or business
affairs such as at www.centa.com <http://www.centa.com> . If you forward
this message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
This from "ask an income tax and immigration expert" from www.centa.com
<www.centa.com/">http://www.centa.com/> or www.jurock.com
<http://www.jurock.com/> or
www.featureweb.com <http://www.featureweb.com/> . David Ingram deals on a
daily basis with expatriate tax returns with:
multi jurisdictional cross and trans border expatriate problems for the
United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait,
Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France,
Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia,
Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran,
India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba,
Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK,
GB, and any of the 43 states with state tax returns, etc. Rockwall, Dallas,
San Antonio and Houston Texas
Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration
Tips, Income Tax and Immigration Wizard Income Tax and Immigration Guru
Income Tax and Immigration Consultant Income Tax and Immigration Specialist
Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist
expert preparer consultant expatriate anti money laundering money seasoning
FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border transactions
Alaska, Alabama, Arkansas, Arizona,
California, Colorado, Connecticut,
Delaware, District of Columbia, Florida,
Garland, Georgia, Hawaii, Idaho, Illinois,
Indiana, Iowa, Kansas, Kentucky,
Louisiana, Maine, Maryland,
Massachusetts, Michigan, Minnesota,
Mississippi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Jersey,
New Mexico, New York, North Carolina,
North Dakota, Ohio, Oklahoma, Oregon.
Pennsylvania, Rhode Island, Rockwall,
South Carolina, South Dakota, Tennessee,
Texas, Utah, Vermont, Virginia,
West Virginia, Wisconsin, Wyoming,
British Columbia, Alberta, Saskatchewan,
Manitoba, Ontario, Quebec City,
New Brunswick, Prince Edward Island,
Nova Scotia, Newfoundland, Yukon and
Northwest and Nunavit Territories,
Mount Vernon, Eumenclaw, Coos Bay
and Dallas Houston Rockwall Garland
Texas Taxman and Tax Guru and wizzard
wizard - consultant - expert - advisor -advisors consultants - gurus - Paris
Prague Moscow Berlin
Lima Rio de Janeiro, Santaigo
New York, Boston, Sacramento, Minneapolis, Salem, Wheeling, Philadelphia,
Pittsburgh, Atlanta, Pensacola, Miami, St Petersburg, Naples, Fort Myers,
Cape Coral, Orlando, Atlanta, Arlington, Washington, Hudson, Green Bay,
Minot, Portland, Seattle, St John, St John's, Fredericton, Quebec, Moncton,
Truro, Atlanta, Charleston, San Francisco, Los Angeles, San Diego,
Sacramento, Taos, Grand Canyon, Reno, Las Vegas, Phoenix, Sun City, Tulsa,
Monteray, Carmel, Morgantown, Bemidji, Sandpointe, Pocatello, Bellingham,
Custer, Grand Forks, Lead, Rapid City, Mitchell, Kansas City, Lawrence,
Houston, Albany, Framingham, Cambridge, London, Paris, Prince George, Prince
Rupert, Whitehorse, Anchorage, Fairbanks, Frankfurt, The Hague, Lisbon,
Madrid, Atlanta, Myrtle Beach, Key West, Cape Coral, Fort Meyers, Berlin,
Warsaw, Auckland, Wellington, Honolulu, Maui, Kuwait, Molokai, Beijing,
Shanghai, Tokyo, Manilla, Kent, Winnipeg, Saskatoon, Regina, Red Deer, Olds,
Medicine Hat, Lethbridge, Moose Jaw, Brandon, Portage La Prairie, Davidson,
Craik, Edmonton, Calgary, Victoria, Vancouver, Burnaby, Surrey, Edinburgh,
Dublin, Belfast, Glasgow, Copenhagen, Oslo, Munich, Sydney, Nanaimo,
Brisbane, Melbourne, Darwin, Perth, Athens, Rome, Berne, Zurich, Kyoto,
Nanking, Rio De Janeiro, Brasilia, Colombo, Buenos Aries, Squamish,
Churchill, Lima, Santiago, Abbotsford, Cologne, Yorkshire, Hope, Penticton,
Kelowna, Vernon, Fort MacLeod, Deer Lodge, Springfield, St Louis, Centralia,
Bradford, Stratford on Avon, Niagara Falls, Atlin, Fort Nelson, Fort St
James, Red Deer, Drumheller, Fortune, Red Bank, Marystown, Cape Spears,
Truro, Charlottetown, Summerside, Niagara Falls, Albany STAR WARS
-----------------------------------------------------------------
David Ingram gives expert income tax & immigration help to non-resident
Americans & Canadians from New York to California to Mexico family, estate,
income trust trusts Cross border, dual citizen - out of country investments
are all handled with competence & authority.
What's Related