Скачать или смотреть [ Offshore Tax ] Canadian Day Trader And Perpetual Traveler

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Canadian citizen. Day trader. Perpetual traveler. Where does he/she pay taxes?

DERREN JOSEPH:

I'm Canadian. I'm not a tax resident in Canada. Good. I trade stocks for a living. It's not a company and I never stay more than three months in the same place. Which is the best place to file your taxes?

Well, come and say after me. It depends, right? So most countries, if you're trading equities, right, and the income is going to be taxed at source. So for example, I guess the most lucrative equities market in the world is the US, right? So if you've been investing as an investor in the US, then, you know, if when you get your dividends or your interest as a non-American, that'll be subject to 30% withholding.

So that's where you're paying taxes. They're going to keep it. They're going to withhold before it gets to you. And I imagine the same in most European countries, in Australia, in new Zealand...there's going to be withholding before it leaves the country. So before it's remitted to you, there will be withholdings. So that's where it's going to be taxed at source. Under certain circumstances, like in the US capital gains, if it is that you, depends on what you...Are you investing for the dividend yield or is the real... you just want to flip, right? So you want to invest and then you watch it go higher, and then you sell and you enjoy that delta between what you paid for and what the profit may be. So that's capital gains. So that is actually tax-free to non-residents. So it depends. So just generally speaking, more often than not, your investment income will be taxed at source. Now, from a Canada perspective, we mentioned that the CRA is particularly, and I haven't, you can visit our website htj.tax, click on blog, and then type in Canada, because what I did as I had not just quoted some of the CRA rules, but some of the recent cases in Canada, because you may think, oh, well, I looked at CRA website. I'm good. And I fill in the paperwork. I'm done. No. So it may be, you may be...not Canadian tax resident at that point in time. But then, then the cases suggest that if you then start moving around and then you're not tax resident anywhere else, the CRA can take the view, you know, they invoke, what is more or less a fallback rule. If you kind of demonstrate that you're not tax resident somewhere else, you, by default, are a tax resident in Canada. So stepping back, just summarizing a few investment income, more times than not, is going to be taxed at source, depending on where you investing in the world. That's the first thing. And then secondly, be wary of the CRA. Even though at the point of leaving Canada, when you first left, you fill out the right forms or whatever. And at that point in time, you were not tax resident, they may not deem you to be not tax resident now if you cannot demonstrate that you're a tax resident, you're properly resident somewhere else. So just a heads up. So in a situation like that, we would always advise a client, hey, pick a place, plan to flag, establish residence there. Just in case the CRA comes knocking on your door, later on you have something to show them. You have something to demonstrate.

VOICE-OVER:

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