"I'm Canadian and want to open an account in..."
- Details
- Category: International Planning Q&A
- Published on Tuesday, 18 October 2011 10:00
- Written by Greg McNally
Question from a Canadian-based IM Member:
Q: "If I want to open an account in Switzerland or Hong Kong or the Channel Islands, would revenue Canada find out? And do I have to report it?"
A (by Greg McNally): Opening an account per se is not reportable. However, having foreign assets in excess of $100,000 Canadian is reportable. In that case, you will need to file Form T1135.
About N. Gregory McNally, BA, LL.B, MBA, JD, LL.M (Int'l Tax), TEP
A Canadian by birth, Greg McNally is an international tax lawyer by training. He has earned various degrees, including law degrees in both Canada and the United States, a Masters of Law in International Tax and a Masters in Business Administration. He practiced law in the Turks and Caicos Islands for 10 years from 1992 until 2002, when he returned to Canada and joined the Royal Bank (Global Private Banking) as their Senior Manager of International Services in Toronto. In 2004, he started an international tax consulting firm called N. Gregory McNally & Associates Ltd., where he now oversees the development and implementation of customized international wealth management solutions on behalf of high-net-worth and ultra high-net-worth clients.
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Irb Laster
Posted at 2011-11-01 08:06:31
The secrecy of Swiss bank accounts has been compromised in recent years, under successful pressure tactics from the US and Europe. This summer, Canadian tax authorities claimed to be getting information on tens of thousands of Swiss bank accounts. Read between the lines, you are risking everything if you are a North American trying to hide money from tax authorities in a Swiss bank account nowadays. Same story for similar reason with Channel Islands. Instead, you need to escape the West's sphere of influence.
I believe Singapore has offers more iron-clad bank bank secrecy nowadays. Unlike in Switzerland, the West is powerless in Asia, increasingly so as Western governments are literally begging Asia for money and, in the case of the EU, making key political concessions in exchange for funding.
Many wealthy people from China and Hong Kong keep financial assets in Singapore due to its privacy, safety and financial strength. Both Singapore and Hong Kong have no investment or capital gains tax (which means there is no tax incentive for the Hong Kong Chinese to keep money in Singapore), but as you know Hong Kong is a part of China, which of course does not have a stable history.
Paul
Posted at 2011-10-19 00:26:25
The question is asked directly on page 2 of the CRA tax return, as to whether you held at any time during the year foreign assets with a total cost of over $100K. So it is hard to miss and it is refers to an aggregate total cost, not of any one account or country. Of course even if the answer is no you have to report any gain or income from foreign assets.
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