Trading Options through TastyWorks

[lannister054]

Hi All,
I'm a Canadian resident and I'm looking forward to open an offshore corporation for trading options in a tax free jurisdiction. I like to use Tastyworks (for options trading), however they aren't available in Canada. I also love to save taxes on the options Income I generated. Kindly give me some ideas/suggestions.

Thanks in Advance!

 

[Martin Everson]

lannister054 said:
Kindly give me some ideas/suggestions.
Click to expand...

Move to a jurisdiction where your income will be tax free otherwise pay to CRA what is owed. The days of sitting in a high tax country and working out elaborate tax saving schemes using non CRS countries are coming to an end. You want to move abroad or setup structures that operate at arms distance which may prove more expensive than simply moving to a new country.

P.S Welcome to the forum thu&¤#.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[cryptonite]

If the Canadian resident above does not want to move abroad, is it still possible to set up a structure not being subject to the taxes on global income, or reporting that it is a foreign controlled corporation? One way to do that is through a structure in which he is neither a director nor a shareholder. When opening a bank account though, the bank will ask for the ultimate beneficiary (unless he wants to use a nominee there too).

When opening a Tastyworks account, especially for structures, they have a form which specifically asks to declare the ultimate beneficiary of the entity. If the utimate beneficiary is actually declared, then surely the nominee directors/shareholders will be of any use? Nominee services are not cheap either.

 

[Larin]

lannister054 said:
Hi All,
I'm a Canadian resident and I'm looking forward to open an offshore corporation for trading options in a tax free jurisdiction. I like to use Tastyworks (for options trading), however they aren't available in Canada. I also love to save taxes on the options Income I generated. Kindly give me some ideas/suggestions.

Thanks in Advance!
Click to expand...

You can do all that, but Canada taxes on global basis, meaning that any revenue generated offshore is still taxable in Canada. So doing your trading offshore doesn't really do anything in this case.