Immigrant taxation of assets held offshore - OFFSHORE IMMIGRANT TRUST - Mark Serbinski - David Ingram gives expert income tax &a

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
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
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
of assets to accounts that are under my wife's name prior to us immigrating,
 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
Many thanks in advance.
As well, would you happen to do UK taxes as well?  I'll have quite a
 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.
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:
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
Date: Monday April 24, 2006
Time: 12:08 PM -0700
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
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
Those outside of the Lower Mainland will be able to listen on the internet
at <>
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
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