Looking to pay 0% tax

[alexkiller1312]

Hello im happy that finally im part of this amazing group

Long story short
I Setup offshore business in TCI as amateur before 2 years without knowing anything about CRS.
When i try to open bank account there they ask for my tax number of my residency country for tax reasons , there my 0% tax dream fall as i understand that its not an easy thing to pay 0% tax.
my idea was to transfer my money there and not pay any kind of tax.

Now my question is how i can make this work is that even possible ? my country of residency now is canada and i have also european passport.
Is it possible without move to any other country make that work ? as i run business here and have family is not a easy thing to leave the country and start over in a new one.
Thanks in advance

 

[Sols]

To borrow the legendary words of German poet H. P. Baxxter of the music quintet known as Scooter: "Move - your - a**." To a low tax jurisdiction, or face the music.

You live in Canada. That has pros and cons. One of the cons is that you're under the CRA's jurisdiction. The CRA is competent and aggressive.

Sure, you can do some creative maneuver where you use your EU passport to set up a company broad and open bank accounts claiming you're resident somewhere in EU with favorable tax regimes (Cyprus, Malta). What you're doing then is called tax fraud. You might also be committing other forms of fraud if you tell banks that you live somewhere other than where you actually live. Or, if not fraud, you're at least violating the terms and conditions with the banks.

In an increasingly privacyless world with secrecy eroding left and right, you're relying on information never getting out and banks never finding out. If that happens, you risk not only the CRA ”” but also having the bank accounts frozen on the ground that you lied to the bank about your places of residence.

If you think moving abroad is going to be a strain on your family, how does that compare to getting hit with taxes, penalties, and interest if/when the CRA busts you for tax fraud? If we're talking high amounts and if you've taken active steps to conceal your money, it's not unusual for creative prosecutors to go for the money laundering angle as well, which may carry prison time.

Hire a good Canadian lawyer/accountant to sort out the mess you've made. They should also be able to help you optimize your deductions, expenses, and other incentives may be available to you to lower your effective tax burden. If you can't move, focus on making the best of your situation.

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This is the probably the answer to your question.

 

[dany]

You only can do that with a ghost company, but that's risky and it's not long term for sure. 0% and living in Canada, listen to what @Sols wrote, it's under normal circumstances not possible.

 

[daniels27]

alexkiller1312 said:
I Setup offshore business in TCI as amateur before 2 years without knowing anything about CRS.
Click to expand...

I think what you could do is go "live" in Europe during your holidays at your friends place etc. and then "work" actively from there. You can then earn acceptable income during your holidays there that is ony taxable there. If you only make 20k per country, it will be taxable at minimal rates and tax-free in Canada due to the existing tax treaties. You probably can make about 200k per year if done wisely with a good family holiday using all your kids 4 months of vacations.

However, it does entail a lot of paper work and administrative time. It is ultimately up to you to decide whether the effort is worth it. You must also note that your kids enjoy good and almost free education in Canada at top class universities, something which would easily cost 20k+ per kid and year if living in TCI and similar places. That's exactly why most countries have "family ties" rules etc. in place: to avoid people from sending kids to school for free while claiming to live in TCI as parents. There is no free lunch (education).

 

[rss]

If you can't physically move yourself to a different country, the options are very limited and in most cases illegal.
You could consider invoicing your clients with a random company you aren't personally tied to and use the funds to buy crypto and put it in cold-storage.

(or just ask your clients to pay you with crypto)