Canadian tax law allows new immigrants to Canada a unique tax-saving opportunity that is unparalleled in any other developed country. If a person who has lived less than 60 months (5 years) in Canada places their assets into a trust that is not resident in Canada, any income earned by those assets will not be attributable to the new immigrant. This effective tax holiday on non-Canadian assets only lasts five years, but it often can take much less time than that to become a Canadian citizen. As a result, it is possible, for a wealthy family to move to Canada and acquire Canadian citizenship, without paying any Canadian income tax on the income from their non-Canadian assets.
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TaxChambers LLP is collaborating with Andersen Global® in Canada.