Canadian Traders Tax Discussion Thread

Quote from EllisWyatt:
I believe a Canadian trader of US futures could eliminate income tax on trading by moving his domicile, for example, to the Bahamas. Canadians, unlike Americans, only pay tax based on where they are domiciled. Americans pay US income tax (subject to offsetting credit for foreign tax paid) no matter where they live in the world.
I'm not a tax pro -- consider this is a layman's understanding.

Quote from DeeDeeTwo:
You make the basic assumption that Revenue Canada is completely unsophisticated...
And that simple tricks will allow you to avoid taxation.
You are obviously not a "tax pro".
More...


EW is correct.
The keyword is Domicile.
Americans are taxed on citizenship, regardless of place of residence.
Canadian are taxed on residency.
i.e. If you sell all your Canadian assets, close your Canadian bank account, resign from your clubs, cut all business/employment/social ties with Canada, and move your family abroad, you become a non-resident. Your non-Canadian earned income will not be taxed by Canada.

http://www.cra-arc.gc.ca/tax/nonresidents/individuals/leaving-e.html

http://www.cra-arc.gc.ca/tax/nonresidents/individuals/nonres-e.html
 
As an individual trader, do I pay tax as my trading account accrues monies from my successful trades, or, do I pay tax when I move any monies to my chequing or savings account...???
 
How about setting up your trading offshore in the Turks and Caicos? One of Toronto's biggest tax firms advertises this service although I don't know the particulars, clearly any money you withdrew for personal use would be taxed as income by CRA but at least you could avoid corporate income tax on your retained earnings (trading profits).
 
You must log in or register to reply here.
Back
Top