Canada
Canada is a jurisdiction which may be utilised in tax planning solutions without having any adverse stigma that is normally attached to pure offshore jurisdictions. It is noteworthy to point out that the United States and the availability of US registered limited liability companies (LLCs) in all 50 states also present that country as a jurisdiction to be used in international wealth preservation structures.
All companies incorporated in Canada are treated under Canadian law as resident for tax purposes and taxable on worldwide income. Further, any company, no matter where incorporated, which is managed and controlled from Canada is also treated as tax resident in Canada and taxable on worldwide income. The possibility does exist, however, for establishing a presence in Canada without Canadian taxation in situations where provincial statutes allow for the continuation of existing foreign corporations in Canada. Such statutes usually provide for the registration of a branch of a foreign company and provided that the central management and control of that branch resides outside Canada and the entity has no Canadian source income, it would be deemed by Revenue Canada to be neither incorporated nor managed and controlled from Canada and therefore not subject to Canadian tax. Alberta is an example of one such province that allows for the continuation of foreign companies where extra-provincial registrations may be achieved under the Business Corporations Act.
For further information on Canadian companies (and US limited liability companies) please contact us.
