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Canadian Tax System |
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Information on prospective tax advantages in Canada.
People are attracted to Canada for many reasons: stable
political climate, safety and security, free universal
health care, good job opportunities, excellent educational
facilities, clean air and a well deserved reputation for
quality of life are just some of them. Tax benefits,
however, are not usually included on this list. They
should be.
To begin with, the following principles of taxation apply:
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Canada
taxes individuals on the basis of their residence and
not their citizenship.
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A
Canadian Permanent Resident may apply for Canadian
citizenship and a Canadian passport after three years.
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Canada
taxes its residents on their worldwide income, but
allows offshore trusts for new permanent residents.
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Canadian citizens who are non-residents of Canada do not
pay Canadian tax on their worldwide income.
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Non-residents pay Canadian tax only on certain Canadian
sourced income and capital gain.
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There
are no estate duties or succession duties in Canada.
New
Canadian Permanent Residents can significantly reduce or
even eliminate Canadian taxes with proper planning in
advance of their arrival. They are permitted to establish
a properly structured offshore trust to shelter
non-Canadian sourced income and capital gain for up to
five years after their arrival in Canada. During this
five-year tax holiday the individual can acquire Canadian
citizenship and choose to become a non-resident for
Canadian tax purposes. In this manner the income and
capital gain generated by the trust never falls into the
Canadian tax net.
Taken all together, Canada is the right choice even from a
taxation point of view.
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A
New Way to Trade
“Financial trading has a major
advantage over many industries in the world,” says British
billionaire Peter Cruddas, seated in the sleek Toronto
office of his company CMC Markets. “You can make a lot of
money very quickly.” As a former trader, the 53-year-old
entrepreneur
is talking from experience. But for the record, he amassed
his fortune by building CMC Markets,
an online trading service headquartered in London, into a
global business, with clients in more than 70 countries.
He now sees a big opportunity for his company in Canada:
introducing everyday investors to the world of contracts
for difference trading.
The contracts—CFDs, for short—have been around since the
1970s. British financial institutions
created them as hedging instruments for pension funds, but
in recent years they've caught on with non-professional
investors. CFDs mirror the price of a share, index,
commodity or treasury. Ones that track shares don't come
with voting rights, but they do entitle the owner to cash
dividends. The real appeal of CFDs is the ability to
profit from relatively small movements in value. That's
because you buy a CFD for a fraction of the cost of the
matching security. (In finance lingo, they're leveraged.)
For example, let's say you want to buy 2,000 CFDs that
track an equal number of Goldcorp shares. You turn to a
company like CMC Markets, which quotes you an “offer”
price of $25.50.
But instead of paying $51,000 (2,000 x $25.50) for the
CFDs, you spend $40 on a commission fee
and $2,550 ($51,000 x 5%) on a margin requirement
(discount brokerages typically have margin
requirements of 30% or more).
For more information or a FREE consultation, call 1-888-339-9590
or email us at info@canadianvisa.com |
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