123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Business >> View Article

Corporate Tax And Immigrant Trusts

By Author: Ken Donaldson
Total Articles: 48

Corporate tax in Canada forms a very small part of the total revenue generated by all kinds of taxes in the country. All the corporate houses in Canada are taxed on the gains from different commercial based activities undertaken and on the capital that they generate which is then disbursed to the shareholders as dividends. A credit is given to the individuals who get dividends to show the payment of corporate tax. Taxation on the dividends is as a result much more than most other methods of generating income.Half of this income is brought under the tax laws and the rest half is excluded.

Companies may subtract the capital cost on the basis of regulations in the Capital Cost Allowance with the deductions allowed on any property that was owned for a short interval. These deductions are also on the property which is re-leased to the original seller.

From the year 2002, many large corporate houses and companies converted themselves into “Trusts” to reduce or completely eliminate their income taxes.This fast tracked the trust sector’s growth a lot. However the government plugged this loop hole by declaring that any new trusts will be treated like the corporations and will be taxed similarly and these new rules were also applicable to the older or the existing trusts to which stopped such modifications by the corporates.

In Canada corporations were also taxed on the capital income by them which were removed completely at the federal level in from January 2006 but some territories continued to charge these taxes till the year of 2012.A review was done by the Canadian Finance Department to determine whether corporate tax should re-introduce on the group level. This review however did not bear any solution and as a result of which such a group taxation law was not formed as the department didn’t find this as a need of the hour.

The tax returns of an individual staying in Canada are evaluated on the basis of the income sources whether it is domestic or from international commercial transactions. Such an immigrant can however approach an immigrant trust, and let the trust manage such commercial activities on his/her behalf. As a result, they can save taxation on such assets for a period of 5 years.

Such a trust can be set up before or a maximum up to 5 year after the individual immigrates to Canada. Such a trust should be non-resident in nature i.e, it should be in the hands of a non-resident trustee or under the control of a set of laws which are not under Canadian jurisdiction. The individual should not have any kind of transaction with a citizen of Canada too.

Once the immigrant becomes a Canadian citizen, the profits generated by the assets under the immigrant trust are tax exempted for 5 years. The setting up of immigrant trusts requires a lot of financial planning as such trusts provide a number of tax related benefits, financial information and safety.


Ken Donaldson is a chartered accountant who practices as an independent tax specialists. He also author of corporate tax, in this article he provides immigrant trusts tips. For more information you can visit Taxca.com.

Total Views: 62Word Count: 525See All articles From Author

Business Articles

1. Advantages And Disadvantages Of Concrete Staining
Author: Ben Lager

2. What To Look For When Hiring An Ocean Freight Shipping Company
Author: William Santos

3. Top 4 Advantages Of Concrete Coating
Author: Ben Lager

4. Centrifugal Blower Manufacturer In India|centrifugal Blower Fan
Author: sara

5. Building A Modern Architecture Homes- Planning And Concept
Author: Leila Adam

6. Thorough Proofreading Finesses Documents, Raises The Organization’s Reputation
Author: NetZealous LLC, DBA TrainHR

7. Design And Build Contractor Singapore – Get The Best Services From Interior Renovation Contractor!
Author: James Han

8. Meishen–a Bright Star In Magnesium Oxide Industry
Author: hu Allen

9. Grow Customer Base And Market Presence With Pharmacist Email Lists For Your Business Campaign
Author: Adam Tyson

10. Adapt New Forms Of B2b Communication With Infection Control Directors Mailing List
Author: Andrew Rayel

11. Moby Wrap Baby Carrier
Author: babycarriersaustralia21

12. Care For Your Deck
Author: Blue Star Carpentry has been specializing in custom decks for over a decade. When you sit outside wi

13. How Does A Small B2b Company Increase The sales?
Author: Mohit Yadev

14. Latest Job Vacancies In India
Author: careersresults

15. Why Are Aap And Congress Supporters Opposing A Tax Reform Like The Gst? Are They Anti-nationals?
Author: Mohit Yadev

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: