PART III - Canadian Citizen on Vancouver Island,

This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
After answering some 4,000 questions in the last two years, I have come to respect some of the correspondents who send me amendments and corrections. People who come to mind are Andrew Nelson, Donald Cameron, David Stoller, Bill Spohn, Richard Pitt, Peter McLaren, David Anderssen, Greg Samuels and others whose names are escaping me at 1:16 AM after a hard day.  One of my more interesting contributors is Nigel Morris-Cotterill, publisher of the World Money Laundering Report and a specialist in international money moving rules and laws.(See more at:  http://www.wmlro.com ).
He has sent me the following and I would appreciate any comment.  My understanding is that privileged communication with a lawyer involves anything where the deed has already happened and does not include anything intending to defraud or harm in the future (other than a court case which always demeans and hurts someone).
i.e. if I tell my lawyer, I killed my neighbour and buried the body under the garage, that is privileged because it has already happened.  However, if I ask my lawyer about killing my neighbour and burying the body, he or she becomes part of the crime if they do not report it.  
And now, that I have reread my answer, I find that the email address for Murray Morrison was incorrect.  the proper address is [email protected] and I have corrected it in the text below as well. 
Any comments, Anyone.
david
-----Original Message-----
From: Nigel Morris-Cotterill [mailto:[email protected]]
Sent: Saturday, December 20, 2003 6:26 PM
To: [email protected]
Subject: Re: [inbox]  PART II - Canadian Citizen on Vancouver Island, British Columbia BC wants to be president of his own Nevada US Corporation ---- - from www.centa.com ask an income tax expert guru specialist ad
David
Re Privilieged Communication
This has been one of the points at the centre of the debate over lawyers and reporting of money laundering suspicion.
The general principle is that PRIVILEGE relates to matters in or in preparation for litigation.
CONFIDENTIALITY relates to everything else: this is so across all common law jurisdictions. 
The Canadian Law Societies are, in effect, trying to extent PRIVILEGE by claiming that there is a right of CONFIDENTIALITY vis a vis the state and that such should be absolute (except in certain narrowly defined circumstances) and that it is protected by the constitution. Even if they are successful, it may be that their success is limited to specific "opt outs" under the anti money laundering laws and therefore the general position would not be affected. A decision will be made sometime in 2004.
It is the client's right to privilege or confidentiality.
In the circumstances you describe below, unless litigation is contemplated, then the information given to a lawyer is not PRIVILEGED.
Regards
Nigel. 
----- Original Message ----- 
From: [email protected] 
To: CENTAPEDE 
Sent: Sunday, December 21, 2003 6:49 AM
Subject: [inbox]  PART II - Canadian Citizen on Vancouver Island, British Columbia BC wants to be president of his own Nevada US Corporation ---- - from www.centa.com ask an income tax expert guru specialist advisor experts advisors
ORIGINAL MESSAGE BELOW - THIS IS PART II
 
David,
My objective is to get a fresh start back in Canada. First, until recently , I found out my name is not what I thought it was. My first, middle , and last are really my middle, first, and last and the spelling is not the same. So I am legally someone else according to my Canadian Birth Certificate. (My parents named me and then called me something else so all my id, licenses, alien registration cards, bank accounts, etc. are all under that name.) I wish to capitalize on that and move back to Canada and live under my true given name. Part of the logic of having a Nevada corporation is the corporation may have assets where I would not, Second there would be no disclosure of me being tied to the corporation. These steps may not be necessary if there is a better way to my goals.
I want to have a corporation that deals with investments i.e. real estate, classic autos, and possibly antique furniture. I don not want to get my assets taken away, nor do I want any garnishments for child support, a student loan, and a former corporation I had to close when my insurance company paid me too little, too late. Can you help me set this up in Canada? Am I overly worried, or can we just set up a new legitimate company and move on? Can you help me with this? How do I obtain a Drivers Licence in BC, and Canadian Social Security Card? I am trying to get a fresh start.
Season's Greetings
'rXXXXXXXXXX
============================
david ingram replies:
I am not the one to talk to at this stage.  I am not a lawyer and have no privileged communication.  You need to talk to a specialist in insolvency and bankruptcy if you are trying for a new start with a name change, etc.  I presume for instance that you intend to get a new Social Insurance number.  I believe it is a criminal offence to apply for another number if you know you have one. 
You should talk to Insolvency / Bankruptcy lawyer
Murray K Morrison
200-10351 150th Street
Surrey, BC, Canada V3R 4B1
(604) 930-9013 fax (604) 588-2005
[email protected]
He has priveleged communication.  If there was something that I needed to be involved in, "he" can hire me and then I would not be able to talk about what had happened either.  Whatever you do, do not send information like this to someone you have never met.
ORIGINAL MESSAGE BELOW-
PART I
Hello,
  Interesting reading your website is. I have a situation I would like your opinion on. I am a Canadian citizen living in the USA and I want to move back to Vancouver Island. I have heard much to-do about owning a corporation (incorporate in Nevada) and want to incorporate before I return to Canada. I would be President of the US corporation. Now, can my corporation own real estate (income properties) in Canada? My income would come from the US corporation. Is this starting to get a little sticky? Or can I enjoy the best of both worlds in this scenario? Hmmmm?
  Seasons Greetings
  'RXXXXXXX 
  ======================================================
  david ingram replies:
  You are wasting your money.  
  Of course you can have a Nevada corporation.  Any sucker that attends a seminar and signs up and pays for one can have one.
  However, you are wasting your money if you think it will save you any tax.  
  It will just severely hurt your pocketbook.
  If you are living in Canada, the mind and control of the corporation is in Canada.  That makes your Nevada Corporation a Canadian Corporation subject to all Canadian taxes.  In addition, it is an inactive  "Holding company" in both countries which gives it a higher tax rate. add an extra $3,000 to 5,000 for the complication of multi-jurisdictional accounting and you have a lose / lose situation.
  Glad to help you set it up though.  We can use the money.
  How about a Delaware and Grand Turks Corporation as well?
  Then you can be president of three useless (to you) corporations.
  Basically, under Canadian Law, for an offshore corporation to be of any value in terms of deferring or suspending Canadian tax on earnings, it must be an ACTIVE Corporation with five full time employees who are NOT related to the shareholders.
  Now that I have said that, there well may be a good reason to have an offshore corporation in The Bahamas or the Turks and Caicos or Grand Cayman Islands or Bermuda.
  It may serve as an Asset Protection Trust which can protect your asserts from frivolous law suits or in some cases against property settlements in a divorce.  (A Bermuda Corporation will not protect assets against a support order though as an example - every offshore country has different rules).
  None of them will protect you against a concentrated attack however if it is big enough.  Two examples of that lack of protection from seizure and exposure would be Brian Mulroney's Swiss Bank Account (with $5.00 or so in it) in the Airbus Scandal fizzle and the seizure of all of David Walsh's (president of Bre X) assets in the Bahamas.  
  In the case of David Walsh, he went and died before anything could happen to him but author Clifford Irving went to jail in Switzerland when it was determined by the Swiss Authorities that the money in his Secret Swiss account was paid to him for an unauthorized biography of Howard Hughes.  He had said that it was an authorized biography and was paid more by the publisher, McGraw Hill.  Howard Hughes came out of a 15 year self imposed exile to repudiate the book and Clifford Irving spent some serious time in a Swiss Jail in a hoax that rocked the literary world.
  I have written more about offshore asset protection trusts at www.centa.com click on [newsletters], click on [1995] and click on [November] for some reasons to have them.
  Hope this helps 
  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 
  [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, Kuwait, Dubai, Saudi Arabia, South Africa,  Thailand, Indonesia, Egypt, Antarctica,  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, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
    Alaska,  Alabama,  Arkansas,  Arizona,  California,  Colorado, Connecticut,  Delaware, District of Columbia,  Florida,  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,  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  Taxman and Tax Guru Your name has been added to our email list because of an enquiry we have received,  we may not answer your question but 
  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
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/17834f14/attachment.htm
---------------------- multipart/alternative attachment--

Trackback

Trackback URL for this entry: http://www.centa.com/trackback.php/UsCaWeekofMon20031222000568.html

No trackback comments for this entry.

0 comments