Offshore tax haven living

happ

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Sep 22, 2010
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The questions I have are say for example u call Bermuda or another tax haven ur residence for the purpose of saving tax. That means u have to end all ties with Canada (understand), so 6 months plus a day must be lived outside Canada. So Im not stuck on some island can I call Bermuda/Bahamas etc. my residence even if I spend as little as a week on the island and live anywhere else except Canada for 60+1 e.g. Florida or another G7 country?
Also, can one living offshore 60+1 keep their money and invest it with a Canadian bank or broker domestically in Canada without attracting cra tax in Canada? Where do you search for lawyers who do offshore work?
 
The questions I have are say for example u call Bermuda or another tax haven ur residence for the purpose of saving tax. That means u have to end all ties with Canada (understand), so 6 months plus a day must be lived outside Canada. So Im not stuck on some island can I call Bermuda/Bahamas etc. my residence even if I spend as little as a week on the island and live anywhere else except Canada for 60+1 e.g. Florida or another G7 country?
Also, can one living offshore 60+1 keep their money and invest it with a Canadian bank or broker domestically in Canada without attracting cra tax in Canada? Where do you search for lawyers who do offshore workThe answer ?

the answer to most of your questions is "no". I have done a lot of research about going offshore and found that Revenue Canada looks at each case differently before they will consider you a non resident for tax purposes. If you are thinking about this you must realize some of the mandatory requirements: you can't have a valid drivers license issued in Canada, you must no longer have OHIP or any other provincial health coverage, you cannot have any bank accounts or credit cards from a Canadian bank or business. You can't own a principal residence or a motor vehicle in Canada and that's just a few of the things the government will check on before they grant you non resident status. If you are serious do your homework and make sure you get legal advice from a firm specializing in this sort of thing. Last time I checked there was a firm called Harris and Harris that did this kind of work.
 
Not even a library card . I did what you spoke about and was a non resident for 8 years . My lawyer advised nothing , not even a library card . All cases are different
 
Not even a library card . I did what you spoke about and was a non resident for 8 years . My lawyer advised nothing , not even a library card . All cases are different
Why is it no problem coming back after years? You live offshore, pay little tax, what's the cost of re-entry?
 
Why is it no problem coming back after years? You live offshore, pay little tax, what's the cost of re-entry?


When you leave Canada to live abroad and not be subject to Canadian taxes, you sever your ties to Canada with the intent of not coming back. So if you keep a car, or put your furniture or your clothes in a long-term storage facility in Canada, that indicates an intent to return, thereby making you a resident of Canada while you were away. Just because you were a resident of another country does not necessarily mean you were not a resident of Canada. You can be a resident of both places at the same time if you don't meet Revenue Canada's requirements, thereby getting a huge tax bill on your worldwide income on your return.

You can own a property like a house, but it must not be left empty as this indicates an intent to return to Canada. However, you can own a house and rent it beyond arms length (not to your relatives) for leases of at least 3 months long, as this becomes investment property. You are still allowed to invest in Canada as a non-resident. That means you can have a bank account for that purpose, and you will have to pay tax on that revenue.

You cannot remain in Canada more than 180 days a year, as longer would make you a Canadian resident even if you made all of your money offshore, and be faced with a huge tax bill when you have to file again on your return.

As a non-resident, you don't pay tax while living offshore because you don't use any services the Canadian taxpayer pays for (except consular services). The big chunk is the provincial health insurance plans. That's why you have to turn in your health card. If you then decide to return to Canada after a minimum absence (I think it's 2 years), then you resume paying taxes and benefit from government services again after a 3 month wait.
 
Not even a library card . I did what you spoke about and was a non resident for 8 years . My lawyer advised nothing , not even a library card . All cases are different

Revenue Canada used to have a questionnaire about your particular situation, and depending on your answers, give you an advance ruling if and when you decided to return. You can phone Revenue Canada directly to find out: that's the cheapest option, rather than hiring a tax lawyer. It's not a single issue they would nail you on, but the overall intent.
 
What about healthcare coverage living offshore, how is it dealt with? For example, does day-to-day travel insurance like cdn motor league or rbc or group travel health benefits plans from canada count. Obviously Im not going to want to be really sick in the Bahamas or Caymans etc..
 
What about healthcare coverage living offshore, how is it dealt with? For example, does day-to-day travel insurance like cdn motor league or rbc or group travel health benefits plans from canada count. Obviously Im not going to want to be really sick in the Bahamas or Caymans etc..
Would a non-resident—from Hong Kong say—insure their health with CAA? If you answer yes, then you could take a sincere shot at convincing CRA.

Here's the bottom-line, if you really are non-resident, what assets and income are you leaving here for CRA to go after and why? If you're actually just playing on the technicalities in the rules that let you have it both ways, you can certainly expect their high-priced and experienced help to play the same game for the benefit of all us other tax-payers and OHG's continuing large deficits.
 
What about healthcare coverage living offshore, how is it dealt with? For example, does day-to-day travel insurance like cdn motor league or rbc or group travel health benefits plans from canada count. Obviously Im not going to want to be really sick in the Bahamas or Caymans etc..

Book the insurance with an international agency like worldnomads.com