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Question For Canadians

According to Canadian law, if you give up all ties and residence in Canada, you may tax residence elsewhere and not pay Canadian taxes.

In the United States, you pay US taxes no matter where you live, no matter how long you've lived there, and no matter your ties to the US. The US one of only two countries which ties tax status to citizenship and not residence (terrorist Syria is the only other country that does this).

My question to you, why stay in Canada, when you can move to a tax haven?

Canada is a nice place, but it's not exactly paradise. Good amount of things to do and low crime, but no tropical beaches, very cold, and high taxes.

If you are going to answer because your job keeps you there, why not start a business you can run from anywhere in the world? Why not find a job in a low tax country?

I wonder why so many people stay in Canada.
 
Originally posted by: n7
Someday i will move to Cali.

But yeah, you make it sound a little too easy...
Click to expand...

*shakes head*

America's taxes are just as bad.

Why not Hong Kong (low income taxes, no capital gains tax)?
The Caribbean (zero taxes)?
Monaco (zero taxes)?
Switzerland (low tax rates)?
UK (where you can hold offshore bank accounts without paying taxes)?
Dubai (no taxes and low cost of living)?
 
It's not very cold everywhere in Canada. We have beaches with palm trees believe it or not. We stay here cause we like it.
 
Originally posted by: silverpig
It's not very cold everywhere in Canada. We have beaches with palm trees believe it or not. We stay here cause we like it.
Click to expand...

But there are better places, there is no doubting that.

But what's more important, places with much lower tax rates.
 
Hmm... lets see. Maybe we are attached to friends and family... maybe cause we are attached to the surroundings we grew up in...

Why would I move just to save money on taxes?
 
Originally posted by: JLGatsby
According to Canadian law, if you give up all ties and residence in Canada, you may tax residence elsewhere and not pay Canadian taxes.

In the United States, you pay US taxes no matter where you live, no matter how long you've lived there, and no matter your ties to the US. The US one of only two countries which ties tax status to citizenship and not residence (terrorist Syria is the only other country that does this).

My question to you, why stay in Canada, when you can move to a tax haven?

Canada is a nice place, but it's not exactly paradise. Good amount of things to do and low crime, but no tropical beaches, very cold, and high taxes.

If you are going to answer because your job keeps you there, why not start a business you can run from anywhere in the world? Why not find a job in a low tax country?

I wonder why so many people stay in Canada.
Click to expand...

US Tax law is based on citizenship, as well as where the work was performed. If you're in the case of being a US citizen, but living in Canada let's say, you can be exempt from paying US Federal taxes if:

1) You can prove that for the entire calendar year that Canada was your residence, and you have closer ties to Canada than to the US.

or

2) You have to have been outside the US for 330 out of 365 days, but you get to choose the 365 day period, as long as a large chunk of it falls within the tax year.


So people moving to Canada from the US will have to pay taxes for the first year, assuming they were in the US and earned money here, but the following year if they lived and worked in Canada 100% then no, they would end up being exempted from US Federal taxes.
 
J

JLGatsby

Banned
Originally posted by: SSP
Why would I move just to save money on taxes?
Click to expand...

Over your lifetime, if you had invested all the money you had paid in taxes, you'd retire wealthier than you could ever believe.

Outside of running a business, I am an active private stock trader (intermediate term swing trading). One day while playing with a spreadsheet, I realized if I didn't have to pay capital gains taxes, over about a ten year period, I would have about ten times as much money.

You would not believe the wealth you lose due to paying taxes on a recurring yearly basis.
 
Originally posted by: Sphexi
Originally posted by: JLGatsby
According to Canadian law, if you give up all ties and residence in Canada, you may tax residence elsewhere and not pay Canadian taxes.

In the United States, you pay US taxes no matter where you live, no matter how long you've lived there, and no matter your ties to the US. The US one of only two countries which ties tax status to citizenship and not residence (terrorist Syria is the only other country that does this).

My question to you, why stay in Canada, when you can move to a tax haven?

Canada is a nice place, but it's not exactly paradise. Good amount of things to do and low crime, but no tropical beaches, very cold, and high taxes.

If you are going to answer because your job keeps you there, why not start a business you can run from anywhere in the world? Why not find a job in a low tax country?

I wonder why so many people stay in Canada.
Click to expand...

US Tax law is based on citizenship, as well as where the work was performed. If you're in the case of being a US citizen, but living in Canada let's say, you can be exempt from paying US Federal taxes if:

1) You can prove that for the entire calendar year that Canada was your residence, and you have closer ties to Canada than to the US.

or

2) You have to have been outside the US for 330 out of 365 days, but you get to choose the 365 day period, as long as a large chunk of it falls within the tax year.


So people moving to Canada from the US will have to pay taxes for the first year, assuming they were in the US and earned money here, but the following year if they lived and worked in Canada 100% then no, they would end up being exempted from US Federal taxes.
Click to expand...

But only because a double tax treaty. You cannot say, move to Monaco or St Kitts and Nevis and do this.
 
Originally posted by: SSP
Why would I move just to save money on taxes?
Click to expand...

Over your lifetime, if you had invested all the money you had paid in taxes, you'd retire wealthier than you could ever believe.

Outside of running a business, I am an active private stock trader (intermediate term swing trading). One day while playing with a spreadsheet, I realized if I didn't have to pay capital gains taxes, over about a ten year period, I would have about ten times as much money.

You would not believe the wealth you lose due to paying taxes on a recurring yearly basis.
 
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