Hi- could anyone tell me what's the best way of minimising taxes on foreign investment income for someone who just wants to stay in Canada for about 3 years (to obtain citizenship) and then permanently leave? Is it possible to just, prior to arriving in Canada, gift the investment assets to a relative who lives outside Canada? After receiving citizenship, one could then just leave Canada and the relative gifts back the investment assets (but the relative keeps the investment returns earned during those 3 years). No income was actually earned at all by the Canadian tax resident. Would this be legal?
Best way to miminise taxes on foreign investment income
- Thread starter Alexander80
- Start date
If you are living in Canada and benefitting from the services don't you think you should have to contribute? I see you plan on leaving Canada after you secure your citizenship so you will not have to pay into the tax base for many years but can come back and retire here if you want.
You are right on moral ground, but what's your answer on the question - "Would this be legal?"
You will likely lose more money by allowing this relative to keep the income than to just pay the tax...
Transferring assets temporarily in order to avoid paying taxes is probably illegal. Consult an accountant or CRA.
You do not like it, I do not like it, but he/she is talking a timeframe before landing. What does it have to do with CRA?
He is trying to find out whether it will be legal to transfer money temporarily to hide it from the CRA. An accountant or the CRA could tell him if his temporary transfer of funds would be legal. Would probably ask a tax accountant versus the CRA for accuracy sake. Attempting to avoid taxation is usually illegal.
OP is trying to avoid paying taxes in Canada. Pretty easy to see what CRA has to do with it...
And this is why we have rising anti-immigrant sentiments in Canada. We have someone who clearly just wants to move to Canada to avail citizenship, and yet wants to deliberately avoid contributing to Canada. shameless