Recent developments have made taxation and investing for Canadian expatriates even more difficult. Here’s why.
- Registered investments and open investments
- Your address and name on correspondence addressed to you
- All personal assets held in Canada (this includes house, car, corporation, etc.)
Ways to reduce tax in Canada
- Keep a travel log: Document and record days inside and outside of Canada during the year of your move.
- File a return for partial years if possible: You must file a return to receive partial credits and payments from CRA. Some countries with tax treaties will not leave you with tax obligations to Canada; and you might be eligible for credits or payments.
- Stay compliant with Canadian tax filing requirements that must be filed for foreign reporting and special filings. Be aware that there are potentially large penalties for not being compliant with foreign reporting requirements.
As an American residing in Canada, it’s important to make sure your financial affairs are structured properly to avoid double taxation issues and ensure compliance with the laws of both countries.
Whether you are transitioning residency between Canada and U.S. or you have already made the move but continue to hold investment assets or financial interests in both Canada and the United States, proper cross-border financial planning can integrate and coordinate the asset management of your investments, reduce taxes and maximize your estate.
For those Canadians and Americans moving or living abroad, careful cross-border financial planning considerations must be given to ensure tax and regulatory compliance in both your home and adopted countries.