Offshore & International Tax Planning

Introduction

It is lawful and sensible to arrange one's business and personal affairs so as to attract the lowest possible incidence of tax. International tax planning is simply introducing a foreign element as an extension of national tax planning. In the international arena, some of the points to consider are:

• residence, domicile and/or nationality of taxpayer
• source of the income or gain
• nature of the transaction
• relationship of the parties
• will the judicious use of a tax haven (such as the Turks & Caicos Islands) or low tax jurisdiction (such as Barbados) that has a beneficial treaty with Canada and other countries (for example China), substantially reduce the tax burden

Tax Havens

Tax havens and low tax jurisdictions enable persons to increase or dispose of, as they see fit, the wealth they have won. They exist not only as a result of world wide taxation but also as a refuge from government intervention with private property. With modern systems of communication, individuals and companies can move their whole operating base from country to country to minimize their liability to tax.

Essentials of a Tax Haven

The ingredients for a successful tax haven include:

• low or no taxes
• political stability
• it must be easily accessible and have a good business climate
• ease of communication and language
• ability to own land

Choice of a Tax Haven

The Turks & Caicos Islands, a British Territory, lies just southeast of the Bahamas, has no direct taxes and meets all the essentials for a world class tax haven. For Canadian businesses operating internationally, if using a treaty network is beneficial, Barbados may be the next best choice.

Deal directly with us - rather than deal with several layers of Canadian and offshore advisors. We offer you cost efficiency and the ability to arrange your international business in a tax effective way.