123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL » Business >> View Article

Corporate Tax And Immigrant Trusts

By Expert Author: Ken Donaldson

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 : 47Word Count Appx. : 525See All articles From Author

Business Articles

1. Asphalt Driveway Repairs In Long Island – How To Go For It?
Author: Joshua Young

2. Why Social Videos Matters For Video Ad Networks
Author: mediaconversion

3. Meet The New York Fashionable Clothes Design Partner
Author: davudobuya55

4. High Quality Fashion Merchandising Site In New York.
Author: davudobuya55

5. Top Notch Designing Services In New York
Author: davudobuya55

6. Meet The Fashion Designing Experts Of New York
Author: davudobuya55

7. The Most Reliable Custom Embroidery Partner In Ny
Author: davudobuya55

8. Quality Automobile Locksmith Service Is All You Need
Author: rokyfernandis12

9. Keep Your Family And Business Safe With Lock Smith
Author: rokyfernandis12

10. Emergency Locksmith Services Are Readily Available
Author: rokyfernandis12

11. Discover Guaranteed Locksmith Services Today
Author: rokyfernandis12

12. Do Away With Crime For Good Effortlessly
Author: rokyfernandis12

13. It’s True! Global Payroll Outsourcing Has Become Important
Author: Sandra Lee

14. Top 7 Factors To Consider While Choosing Amongst The Best Contemporary And Business Hotels In Delhi
Author: Satya Svelte

15. Translate For A New Atlas
Author: Shreya Gupta

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