Offshore investments

[GostHacked]

Oh just stop with this BS.

We are not talking about using TFSA's to shelter income from taxes.

Or the use of corporate class shares to defer taxation (although that loophole will be closing soon enough).

People put assets in offshore companies to avoid paying tax on income that they should be reporting and paying tax on.

Yes, it really is that easy.

Your two points are part of the overall issue. Assets and taxes are both hidden in offshore accounts to avoid taxes. And in many cases you have financial advisors giving them this advice in the first place.

[msj]

Your two points are part of the overall issue. Assets and taxes are both hidden in offshore accounts to avoid taxes. And in many cases you have financial advisors giving them this advice in the first place.

Once again, we are talking about INCOME taxes. That is the big issue.

Not probate, which is a tax on asset values.

Not capital taxes for which Canada and most (all?) provinces don't bother with anymore like they did back in the '90's.

Even the penalties for not filing T1134/T1135 forms is no more than $2,500 per form per year which is often small potatoes compared to the income taxes saved by hiding the assets and, therefore, hiding the INCOME.

So stop pretending you sound smart when you say this.

Of course the assets are hidden because they must be in order to evade INCOME taxes.

You hides the assets in order to hide the INCOME.

Once again, this is not rocket science.

WTF else do you think someone would set up an anonymous corporation overseas?

If it was to conduct legitimate business it would not need to be anonymous.

My gawd, this is so obvious.

[eyeball]

So obvious it should be outlawed. The legitimate uses for offshoring can't be justified given how easy it is to use them illegitimately.

[msj]

To be fair, I'm sure Woody Harrelson had wished he went the anonymous route when trying to get his business application for that marijuana business in Hawaii.

Saves some embarrassment I suppose.

But if you are going to be anonymous to save media attention then it is an easy step to then justify staying anonymous to save income taxes.

The temptation is too great.

[jacee]

/forget-nigeria--david-cameron-needs-to-tackle-tax-secrecy-in-britain

Hmmm...

And Canada too?

Canada: A New Tax Haven:

How the Country That Shaped Caribbean Tax Havens

is Becoming One Itself

These exercises in fostering fiscal and banking leniency have predisposed Canada to become one of the mostattractive tax havens to foreign interests. Not only does Canada offer one of the lowest corporate tax rates in the world, but a number of loopholes encourage companies to relocate to Canada as if it were Barbados or Bermuda. Canada: A New Tax Haven is an attempt to analyze the situation and address its implications for Canadians.

Edited May 11, 2016 by jacee

[overthere]

We were talking about how to avoid Canadian taxes legally.

The answer to that is ... give up your Canadian residency, and benefits.

.

Every single Canadian is provided with tax avoidance measures and is strongly encouraged by the government to take advantage of them- and they all do.

I see you are unrelentingly in your disapproval of any kind of personal credits or exemptions this, so you must be a flat tax advocate. I had no idea you hated the elderly, infirm, disabled or those with dependents that much.

[jacee]

Every single Canadian is provided with tax avoidance measures and is strongly encouraged by the government to take advantage of them- and they all do.

Assuming legal means are exhausted and one wishes to avoid Canadian income tax ...

You can't hide it ... legally.

You have to change your residency.

I'm sure many do.

.

Edited May 13, 2016 by jacee

[SpankyMcFarland]

Apparently, KPMG has now obtained a gag order preventing the Commons finance committee discussing the Isle of Man caper because it is before the courts:

http://www.cbc.ca/news/business/kpmg-isle-of-man-commons-testimony-1.3622824

This would appear to give the company an incentive to drag the case out a little more.

[SpankyMcFarland]

Canadians don't seem to care.

http://business.financialpost.com/personal-finance/taxes/famous-swiss-bank-whistleblower-wonders-why-canada-gave-up-so-easily-on-1-billion-in-unpaid-taxes

In a democracy, each citizen has a vote; in a plutocracy, each dollar has a vote. We are moving from one to the other with a minimum of fuss.

[eyeball]

On 2/17/2017 at 9:17 PM, SpankyMcFarland said:

Canadians don't seem to care.

http://business.financialpost.com/personal-finance/taxes/famous-swiss-bank-whistleblower-wonders-why-canada-gave-up-so-easily-on-1-billion-in-unpaid-taxes

In a democracy, each citizen has a vote; in a plutocracy, each dollar has a vote. We are moving from one to the other with a minimum of fuss.

I guess its fair to say an election in a plutocracy is more proportional and the outcome is as predictable as the sunrise.