Offshore Immigrant Trust

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mark
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Joined: Tue Nov 23, 2004 1:55 am

Offshore Immigrant Trust

Post by mark » Wed Nov 24, 2004 2:51 am

I heard that Canada provides immigrants a chance to take a 5-year tax holiday if they set up an offshore trust before immigrating. And it will be no tax for the beneficiaires to receive the distributions of trust capital when the trust is termianted before the settlor lives in Canada for 5 years. Is the distribution of trust capital really free of tax and also no attribution rules? How could the CRA tell the distribution is from trust capital or income? If the beneficiaries receive the distribution of trust capital (stocks), what is the cost of stocks for beneficiaries? Thanks!

Norbert Schlenker
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Post by Norbert Schlenker » Wed Nov 24, 2004 2:28 pm

If you are a candidate for this - it's not worth doing unless it's major $ - you need professional advice. You can't leave any i undotted or t uncrossed.

Contact a good cross-border tax lawyer.

nelsona
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Post by nelsona » Wed Nov 24, 2004 6:26 pm

The figure i've seen is $750K.

The true advantage is fir those who will only stay in Canada for less than 5 years.

<i>nelsona non grata</i>

Mark T Serbinski CA CPA
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Post by Mark T Serbinski CA CPA » Fri Nov 26, 2004 9:11 am

See this link for more information:

http://www.serbinski.com/Amincanada/Imm ... rusts.html

Regards,

Mark T. Serbinski, CA, CPA

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