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Thanks for your concern, but I am very happy with the professional advice I have received and am entirely confident that no tax fraud is being committed.

charlesdm 9y ago
Just make sure to have good legal counsel. Because something is "legal" for person X doesn't make it legal for person Y. A wealthy family with a company that employs 1000+ people will generally get away with more than a lone wolf with no political connections (not that I'm saying you're a lone wolf, just saying it's not always clear cut). Best of luck!
Keats 9y ago
How do you get around corporate tax residence?
- markvdb 9y ago
  In most cases, you don't. You're just ignoring double taxation treaties.
graeme 9y ago
I read your comment, and the feedback you’re replying to. I notice that you have not mentioned the word “lawyer”. Instead you said accountant and professional. I’m going to write the rest of this on the assumption you have not spoken to a tax lawyer. You’ve set up a structure for years, and are likely investing tens or hundreds of thousands in equity. A consultation with a good tax lawyer can be had for $100-$200 in most cases, or even free sometimes. Your situation might be 100% correct! In which case, you have spent very little. But if your situation is wrong? You risk the total destruction of your business, tens of thousands in penalties and legal fees, and possibly jail. Speak to a lawyer, if you haven’t. Incidentally, I had the same idea as you: Canadian business, international clients. Could I incorporate abroad and save? My tax’s lawyer’s answer was no, the local revenue authorities would not see it that way. You’re in another jurisdicion, so the plan may work. But, you will spare yourself the possibility of ruin by checking with a tax lawyer in the jurisdiction you live in.
- charlesdm 9y ago
  You're not wrong. I have a friend who used to work at PwC essentially handling tax avoidance tactics for clients, and she recently switched to a reputable accounting office due to unhealthy work pressure. She's knowledgeable and is clearly aware that the advice being given by her current accounting office is much worse (and often incorrect) in comparison to the advice given by people at her previous job. They're excellent at handling accounting, but not good at structuring (non local) things and avoiding tax.

charlesdm 9y ago

Just make sure to have good legal counsel. Because something is "legal" for person X doesn't make it legal for person Y. A wealthy family with a company that employs 1000+ people will generally get away with more than a lone wolf with no political connections (not that I'm saying you're a lone wolf, just saying it's not always clear cut). Best of luck!

Keats 9y ago

How do you get around corporate tax residence?

markvdb 9y ago
In most cases, you don't. You're just ignoring double taxation treaties.

graeme 9y ago

I read your comment, and the feedback you’re replying to. I notice that you have not mentioned the word “lawyer”. Instead you said accountant and professional. I’m going to write the rest of this on the assumption you have not spoken to a tax lawyer. You’ve set up a structure for years, and are likely investing tens or hundreds of thousands in equity. A consultation with a good tax lawyer can be had for $100-$200 in most cases, or even free sometimes. Your situation might be 100% correct! In which case, you have spent very little. But if your situation is wrong? You risk the total destruction of your business, tens of thousands in penalties and legal fees, and possibly jail. Speak to a lawyer, if you haven’t. Incidentally, I had the same idea as you: Canadian business, international clients. Could I incorporate abroad and save? My tax’s lawyer’s answer was no, the local revenue authorities would not see it that way. You’re in another jurisdicion, so the plan may work. But, you will spare yourself the possibility of ruin by checking with a tax lawyer in the jurisdiction you live in.

charlesdm 9y ago
You're not wrong. I have a friend who used to work at PwC essentially handling tax avoidance tactics for clients, and she recently switched to a reputable accounting office due to unhealthy work pressure. She's knowledgeable and is clearly aware that the advice being given by her current accounting office is much worse (and often incorrect) in comparison to the advice given by people at her previous job. They're excellent at handling accounting, but not good at structuring (non local) things and avoiding tax.