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Globe-Trotting
Sportsman Or Entertainer: Canada
A Canadian citizen with extensive, international,
multi-sourced income is not in a good tax
situation unless he or she can establish
non-residence - see under 'High-Tax Country
Resident Planning To Go Offshore'.
If resident in Canada, the peripatetic
professional may well find himself paying
withholding tax in a number of countries
which cannot in many cases be reclaimed
or set off against Canadian taxation because
of the absence of a tax treaty.
Such an individual will almost certainly
resort to corporate structures to market
his or her skills and manage derivative
income flows. It may well be that these
can usefully be based in offshore jurisdictions,
although complex structures may be necessary
if the Controlled Foreign Company legislation
is to be avoided.
Apart from the extra difficulty of minimising
tax on the income side, a Canadian-resident
sportsman or entertainer will be in the
same position as any other Canadian resident,
and the remarks under 'High-Tax Country
Resident' will apply.
If a foreign sportsman or entertainer becomes
Canadian resident, then he or she is in
the same position as an expatriate executive.
Such individuals who have significant 'active'
business income may be able to make use
of offshore corporate tax shelters.
www.lowtax.net
contains details of the offshore business
sectors of 35 jurisdictions, and their taxation.
NB: The suggestions given above do not
constitute investment advice. They are intended
only to assist individuals in finding appropriate
professional advice, which is essential
for anyone planning offshore investment.
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