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Email this11:50 am
February 7, 2019
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mmlt said
Seeing the Bahamas mentioned reminded me of an ex-workmate. He was nearing retirement and decided to send his and hers life savings to the Bahamas. Great interest rates and no taxes. Money disappeared. His wife was an accountant. He went a little loopy after that.
The good news is they avoided Canadian taxes ...
| CGO |
11:56 am
March 30, 2017
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Alexandra said
Would the wealth tax be on individuals or on household wealth? Would the wealth tax include the "value" of your government pensions? And what is the true value of a pension anyway? The amount that you have paid in? The contributions you have made plus the employers? If two of you already have a $60K pension each, what is the value of that? For example, a couple would need $3M in GIC's paying 4% to receive $120K per year. What about art, what about two $60K SUV's, what about expensive stamp collections. On and on it could go.
I would imagine its based on liquid asset (excl principal residence at least) ?
I am perfectly fine if they include rental property, or other assets that can be readily mark-to-market.
Its totally false and wrong to include pension value, etc. Otherwise its as non sensible as taxing unrealized capital gain...
11:58 am
December 20, 2019
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Yeah... there is probably more to that story.
I have had generous accounts in the Bahamas for a few years with no issues.
Bought a Condo there and also no issues with any of the transactions.
Most people that lose money from a bank are in some way responsible.
8:41 am
February 4, 2017
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@kamwest
Yes. "Fools and their money are soon parted." There is always a degree of risk dealing with offshore entities.
We, likely, enjoy a more robust and certainly a safer banking system than many countries. I'm sure most do their due diligence before committing resources elsewhere.
8:46 am
December 20, 2019
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Also of note that RBC and Scotiabank are in the Bahamas as well.
If you live there you can use a Canadian bank and still be tax free.
5:08 pm
December 27, 2020
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Bill said
To be a Cayman Islands resident for tax purposes you don't actually have to be there hardly at all.
Yep. Canadians whining about their country is hard to fathom when you look around at what's going on in this world. Have a good time.
9:32 pm
April 18, 2022
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KamWest said
Also of note that RBC and Scotiabank are in the Bahamas as well.If you live there you can use a Canadian bank and still be tax free.
Are Itrade and Rbc broker Cdn$ third party Gics available in Bahamas can one buy through a broker in Toronto from Bahamas?
How does it work you leave country 6mths + day, cut off all ties to avoid tax, can you still hold funds in a Cdn bank in Canada.
Also, who are some advisers who advise on this who is known good and reasonable
Many Canadians trying to figure a way out but how-to advisory is not readily available.
7:54 am
April 30, 2022
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Bobbyjet11 said
Yep. Canadians whining about their country is hard to fathom when you look around at what's going on in this world. Have a good time.
Yeah, but they still want their Canadian citizenship.
Basically, they relied on the laws, safety, and support of this country to become wealthy. There are countries in the world where contracts are not worth the paper they're printed on, and if you don't grease the local police captain then you have zero chance of business success (this is not an exaggeration, I have seen this with my own eyes).
And then, when they become wealthy they throw a tax tantrum and flee, so they can wear a sun hat and stare at water while their awful kids wait for them to die. Good friggin riddance.
8:07 am
December 20, 2019
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Yup, when I'm living in the Bahamas I'm going to think fondly of our gorgeous winters in Canada. I am going to remember how happy I was giving the government 53% of all my income plus paying hst, gas tax, property tax etc.
When I'm sitting on the beach while my investments are growing tax free I will be thinking how great it was paying taxes until August before the first paycheck was mine. I will think Trudeau was the best thing that ever happened because the carbon taxes eating half of my utility bills are surely saving the planet.
Yup, I will miss Canada so much, that darn sand from the beach keeps getting tracked into the house in the Bahamas.
8:24 am
April 30, 2022
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KamWest said
When I'm sitting on the beach while my investments are growing tax free I will be thinking how great it was paying taxes until August before the first paycheck was mine. I will think Trudeau was the best thing that ever happened because the carbon taxes eating half of my utility bills are surely saving the planet. Yup, I will miss Canada so much, that darn sand from the beach keeps getting tracked into the house in the Bahamas.
I hope you're right -- for your sake. But I've seen many wealthy expats who realized that as much as they don't miss the winters or a political party or whatever, they are actually heartbroken for having fled their country. It manifests as a mixture of bitterness and artificial indifference (they go out of they way to tell you -- over and over -- how happy they are and how glad they are that they aren't in Canada).
It was really sincerely sad and I felt compassion for them. They thought they were making a very rational and shrewd decision -- and on one level, they did. But they failed to realize that they have a heart as well, and guess what? Their heart is Canadian and there is nothing they can do about it.
But you're not the only high net worth person around here who is in the highest tax bracket. I'm not leaving. This country has enabled my success -- I'm not going to abandon it. To each their own.
5:36 pm
September 11, 2013
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The tax ex-pats I know don't actually stay in their place of tax residence that much, some keep property in Canada that they make use of when they're in and out of town, some also have property in southern USA, Mexico, etc, some travel a lot, some visit regularly family and friends in Canada, so between all those options they're not really sitting on the same beach in their country of tax residence all that much, far as I can see. And I see no real evidence of being "heartbroken", though like all travellers they do like to give off that they're having a great time.
And interesting how no vitriol for retired snowbirds who benefitted from Canada and then spend retirement years and their money in USA, etc for half the year or so. Or Canadians who every chance they get leave the country to vacation on foreign cruises, foreign resorts, foreign rentals, Europe trips, etc., i.e. spend all their extra money outside Canada. Not sure why that's not seen as being "disloyal".
5:42 pm
April 30, 2022
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Bill said
And interesting how no vitriol for retired snowbirds who benefitted from Canada and then spend retirement years and their money in USA, etc for half the year or so.
Why would there be any vitriol for Canadians who regularly go south and annoy the living **** out of people in Arizona and Florida? They are better than Canadian Geese (and they poop almost as much). We should subsidize their migration.
6:24 pm
February 4, 2017
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KamWest said
Yup, when I'm living in the Bahamas I'm going to think fondly of our gorgeous winters in Canada. I am going to remember how happy I was giving the government 53% of all my income plus paying hst, gas tax, property tax etc.When I'm sitting on the beach while my investments are growing tax free I will be thinking how great it was paying taxes until August before the first paycheck was mine. I will think Trudeau was the best thing that ever happened because the carbon taxes eating half of my utility bills are surely saving the planet.
Yup, I will miss Canada so much, that darn sand from the beach keeps getting tracked into the house in the Bahamas.
Good for you! Enjoy your wealth, enjoy your life.
I should be doing the same thing and I would if I had a trophy wife ... ha. The idea of paradise with the old battle axe does not compute. I'm, mostly, joking of course.
8:37 am
April 18, 2022
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KamWest said
I am sole proprietor of a number of successful businesses and I pay on average 53% tax each year.
Does that include extra taxes we all pay like sales tax, residential property tax. I assume it includes tax on salary and dividends from the business.
For example, interest income gic investor earns 250k versus small business person earning 250k which one pays more tax after everything?
Anyone else running a business paying 50% tax. What's the point of running a business then unless you're Bezos.
9:43 am
March 30, 2017
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Why would a small business that takes all the risk, support the economy by hiring workers, to paythe same tax rate as someone who tuck the money away in a GIC that can be 100% principal protected....
11:44 am
September 11, 2013
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Um......because maybe you can make your small business into a big one and make a pile of dough? My impression of people who start businesses is they're doing so not mainly to "support the economy" but to make money.
12:02 pm
March 30, 2017
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Bill said
Um......because maybe you can make your small business into a big one and make a pile of dough? My impression of people who start businesses is they're doing so not mainly to "support the economy" but to make money.
Of course they are there to make money, so are the GIC investors... If someone claim they are there for the economy, that person is just full of balognese.
That does not change the fact the small business owner take risk, whether a small one or a big one. And they grow big not because they have "principal protection" to back them up.
I invest in both GIC and equities. And just because I have income from GIC does not make me an advocate that GIC income should be taxed at the lowest bracket. It is simply wrong.
9:51 am
April 18, 2022
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savemoresaveoften said
Why would a small business that takes all the risk, support the economy by hiring workers, to paythe same tax rate as someone who tuck the money away in a GIC that can be 100% principal protected....
Gic investors take risk too inflation taxation lending and are job creators. They support the economy and are almost forced to lend at ultra low rates. Their families are just as worthy.
10:03 am
March 30, 2017
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AllanB said
Gic investors take risk too inflation taxation lending above cdic and corporate deposit insurance for example,
They support the economy and are almost forced to lend at ultra low rates, they are job creators too. Their families are just as worthy.
"forced to lend at ultra low rates" ? Who put a gun to a GIC investors' head...
Its all about being fair and realistic. I would love to hear who else agree with you a GIC investor takes the same amount of risk a small business owner and thus should be "compensated/taxed" equally...
A capitalist economy is built upon a risk vs reward formula.
10:23 am
January 11, 2020
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I would advocate interest income is unfairly taxed at the highest rate. Why pay the highest rate on what is usually the lowest return and the instrument most seniors go towards as they look to reduce volitility? And if they won’t tax interest as less they should surely tax capital gains/dividends greater as I have never had the government feel sorry for me and give me extra because I only earned 3% but I have seen them over and over artificially manipulate interest rates lower to abnormal levels which gift wraps higher returns in equity markets as they distort real costs of capital
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