Tax dodge of the week: Shelter your income and assets in Canada
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If you’re thinking of becoming non-resident for tax reasons, try Canada, says the Schmidt Offshore Report.
Though it is a high-tax jurisdiction, new residents can escape tax for up to five years (before moving on), and Canada has the advantage of not setting alarm bells ringing with the tax authorities.
In order to shelter worldwide income and assets you will have to set up a special offshore trust or ‘immigrant trust’ before you go. You also need to ensure that the trustees are not Canadian residents and remember that if you stay a day longer than five years you will start paying the same level of tax as a Canadian-born individual.
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It is surprisingly easy to gain permanent-residence status in Canada as the country is very keen to attract new residents. You will be assessed for suitability, but top of the authorities’ lists are those with assets of more than £250,000 who are willing to invest in a business, or people who apply under the ‘entrepreneur’ category.
One way to gain residency is to become a farmer (you can buy a farm for as little as £50,000). Once you have gained status, you need to spend 183 days in the country, or have ‘established residential ties’, such as a home or a spouse.
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