Considering the US has the most billionaires than any other country on the planet, I can only imagine there are a lot of tax loopholes to exploit. Our corrupt politicians would also, be more than happy to add a few more tax loopholes to the US tax code in exchange for millions in campaign cash. Consult a qualified tax accountant or tax lawyers for their expertise. I am sure by now, they have a portfolio of tax avoidance and tax loopholes for their wealthy clients. As long as you are willing to pay, they will help you avoid paying a lot of taxes.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Best Country for Trading (Tax efficiency)
- Thread starter ET873
- Start date
To qualify for residency, an individual must be present in Belize for 183 days or more during a calendar year.
I'm not sure it's Belize's (or the destination country's) laws that control here, but...I think it Canada's laws would be more pertinent; after all, you're making the case to the CRA that you are no longer a Canadian tax resident. So the Q is less 'how does Belize define residency?', and more 'What showing do you need to make to convince the CRA that, regardless of where you're moving off to, you're no longer a Canadian tax resident?' The laws of the destination country may be a data point they look to, but it doesn't seem like they'd be dispositive.
This is a traders forum, what you need is a fiscal advisor who knows very well the laws of the country you go to and the country you come from. All answers posted on ET have a considerable risk of not being correct or at least being inaccurate.
Unless there is a trader on ET who actually uses this construction and confirms he never had any problems.
In general residency means being physically present in the country. How long depends from which country is involved. Many countries use the 183 days rules, but some don't use it. Some use the calendar year as reference period, but others use any running 12 month period. If you assume calendar year, but are wrong, it can be very costly.
Get professional help.
Right. That's why I wrote in my post that I am going to consult a professional, but was looking to do my own research first. Don't think that I'm going to take what I read here as gospel. Just soliciting feedback / opinions, and I'll filter as appropriate.
There is no tax treaty to avoid double taxation: https://www.canada.ca/en/department-finance/programs/tax-policy/tax-treaties/in-force.html
So basically you need to sever all ties with Canada that might give them a reason to argue that you are liable to tax :
- no local accommodation (including a relative's place that you would regularly go to)
- no trading / making any money while in Canada
- no spending more time in Canada than in Belize
- no vehicle registered in Canada, no valuable belongings there... (the vital interests argument)
- be able to prove that you are indeed a tax resident somewhere else : that is the part you need to check with Belize
So basically you need to sever all ties with Canada that might give them a reason to argue that you are liable to tax :
- no local accommodation (including a relative's place that you would regularly go to)
- no trading / making any money while in Canada
- no spending more time in Canada than in Belize
- no vehicle registered in Canada, no valuable belongings there... (the vital interests argument)
- be able to prove that you are indeed a tax resident somewhere else : that is the part you need to check with Belize
Bad news for people like me who have IB accounts of entities in a low tax jurisdicitions
"Urgent Matter Regarding Your Account
Dear Client,
Due to changes in our requirements for organizational accounts from your jurisdiction, we've determined that we are no longer a good fit for your business and will be terminating services for your account.
We therefore request that you close or transfer all position and withdraw funds by no later than September 1, 2020. To make this closing process more manageable, your account will be restricted to closing transactions effective August 15, 2020.
If your intent is to transfer positions to a new broker rather than closing them in your IBKR account, please provide contact information for that broker and we will coordinate with their back office to make this transition as seamless as possible.
Please contact our Professional Services should you require assistance with closing your account.
Regards,
Interactive Brokers Professional Services"
I use a Belize entity. I'm considering opening another entity elsewhere but I'm afraid I might face the same problem in a year or two. Any suggestions?
"Urgent Matter Regarding Your Account
Dear Client,
Due to changes in our requirements for organizational accounts from your jurisdiction, we've determined that we are no longer a good fit for your business and will be terminating services for your account.
We therefore request that you close or transfer all position and withdraw funds by no later than September 1, 2020. To make this closing process more manageable, your account will be restricted to closing transactions effective August 15, 2020.
If your intent is to transfer positions to a new broker rather than closing them in your IBKR account, please provide contact information for that broker and we will coordinate with their back office to make this transition as seamless as possible.
Please contact our Professional Services should you require assistance with closing your account.
Regards,
Interactive Brokers Professional Services"
I use a Belize entity. I'm considering opening another entity elsewhere but I'm afraid I might face the same problem in a year or two. Any suggestions?
Bad news for people like me who have IB accounts of entities in a low tax jurisdicitions
"Urgent Matter Regarding Your Account
Dear Client,
Due to changes in our requirements for organizational accounts from your jurisdiction, we've determined that we are no longer a good fit for your business and will be terminating services for your account.
We therefore request that you close or transfer all position and withdraw funds by no later than September 1, 2020. To make this closing process more manageable, your account will be restricted to closing transactions effective August 15, 2020.
If your intent is to transfer positions to a new broker rather than closing them in your IBKR account, please provide contact information for that broker and we will coordinate with their back office to make this transition as seamless as possible.
Please contact our Professional Services should you require assistance with closing your account.
Regards,
Interactive Brokers Professional Services"
I use a Belize entity. I'm considering opening another entity elsewhere but I'm afraid I might face the same problem in a year or two. Any suggestions?
Just ask any other broker if he accepts you. I know there are brokers that accept "offshore" companies as client. Because I had one before I moved to a low tax country physically.
I've heard a couple reports like this, which is worrying. I've been trading under a US LLC with pass through taxation for a couple years without issue. However, I've been considering changing the ownership of the LLC to be another entity in a low tax jurisdiction rather than me owning the company directly. Hearing these reports though has me second guessing since I don't want my account shut down.Bad news for people like me who have IB accounts of entities in a low tax jurisdicitions
"Urgent Matter Regarding Your Account
Dear Client,
Due to changes in our requirements for organizational accounts from your jurisdiction, we've determined that we are no longer a good fit for your business and will be terminating services for your account.
We therefore request that you close or transfer all position and withdraw funds by no later than September 1, 2020. To make this closing process more manageable, your account will be restricted to closing transactions effective August 15, 2020.
If your intent is to transfer positions to a new broker rather than closing them in your IBKR account, please provide contact information for that broker and we will coordinate with their back office to make this transition as seamless as possible.
Please contact our Professional Services should you require assistance with closing your account.
Regards,
Interactive Brokers Professional Services"
I use a Belize entity. I'm considering opening another entity elsewhere but I'm afraid I might face the same problem in a year or two. Any suggestions?
Has anybody else had problems with IB using a US LLC owned by a low tax IBC or equivalent?
Of courseYou were able to open an account as a foreign owned single member disregarded entity?