Canada is a country where taxation is a part of life. Taxation at the
personal income tax and corporate income tax level helps to pay for
such services like health care and education. There is also a sales
tax (a flat 7% federal tax called Goods and Services Tax) apart from
provincial sales taxes (depending upon the province) on most retail
purchases. Let's not forget municipal taxes that help pay for services
provided by cities and municipalities like road maintenance, police
and fire department, etc.
Many of our clients are not used to paying taxes, specifically those
who arrive from Middle Eastern countries like U.A.E. and Saudi Arabia!
Though we cannot totally eliminate this burden, we can help to minimize
the impact of income taxes on new immigrants to Canada.
As indicated elsewhere, we consider ourselves experts not only in
Canadian taxation but also taxation internationally, like in the U.S.,
Europe, etc. As such, we advise our clients about certain steps that
they can take even prior to arriving in Canada to minimize the tax
impact in future years. Certainly after becoming permanent residents,
there are various legal ways and means to reduce the tax effect of
living in Canada.
Double Taxation & Tax Treaties:
Canada has tax treaties with the majority of nations. We are very
knowledgeable about these and make sure that if any of our clients
still have income in other countries after arriving in Canada
(frequent occurrence), that we take advantage of the tax treaty
rules and make use of all pertinent foreign tax credits to
minimize double taxation.
Certain high net worth clients can benefit from the establishment of an
Immigration trust outside of Canada. The idea is to permit new immigrants
to legally have a five-year tax holiday on any revenue generated on the
assets within the trust. The added benefit is that the assets are
protected from any potential creditors and not even located in Canada.
This can be done even prior to landing in Canada.
Filing of Tax Returns:
We advise our clients on the proper way of filing tax returns after
their arrival in Canada and to legally take advantage of all tax
loopholes and deductions.
Tax Ramifications of Working, Doing Business in Other Countries:
Some of our clients after a few years residence in Canada especially
after getting their Canadian passports, get a job in the U.S. or the
Middle East and elsewhere. We discuss the tax impact of taking up
these positions. Similarly, some clients want to do business in
other countries based in Canada (e.g. opening up a branch office
in the U.S.) and we discuss with them the legalities as well as
the best methods for tax minimization.