» Tax Consulting and Related Services »
June 13, 2024

Service Areas

Tax Planning for New Immigrants to Canada

Canada offers generous tax exemptions and incentives for new immigrants. We are very experienced in advising new immigrants on how to take maximum advantage of these exemptions and incentives. We closely coordinate this tax planning with professional advisers in the immigrant's country of origin.

With appropriate planning, a tax exemption can be obtained for up to five years on foreign income and capital gains, using a non-resident trust. We are experts in structuring these trusts, and can also refer the client to professional trustees in offshore jurisdictions who will handle the management and administration of the trust. Specifically, in tackling such an assignment we

  • review the immigrant's assets, sources of income, and personal situation to determine the most appropriate tax planning;
  • prepare a memorandum indicating the recommended tax planning strategy, along with detailed steps for implementing the plan;
  • introduce other professionals in offshore jurisdictions, as appropriate, to carry out the tax planning (which may involve creating offshore companies and/or offshore trusts);
  • provide a tax opinion concerning the planning that attests to the acceptability of the overall plan for Canadian tax purposes;
  • prepare all required Canadian filings, which may include Canadian personal income tax returns and special foreign reporting forms;
  • review the client's overall estate planning objectives to make sure they are appropriate, and assist the client in designing new Canadian wills;
  • assist in ongoing taxation issues, such as ways of receiving remuneration or a foreign inheritance; and
  • handle any disputes with the CCRA, and act as liaison on behalf of the client.

In addition, we assist with restructuring the overall tax planning when the five-year tax-exempt period expires, or should the immigrant choose to leave Canada at any time. We take a strategic approach to these assignments, with a long-term focus on tax minimization and wealth preservation.

Sometimes valuations are required in this type of work. If so, we can supply valuation reports in a format that is acceptable to Canadian tax authorities.