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CANADA IMMIGRATION - 2016
Immigration to Canada via
Manitoba Business Category
$100,000 Canadian Dollars Investment
Immigration. Really? That is what most of you see in the advertisments and
wonder how it might be possible to gain legal status in Canada with just a
$100K investment.
Well, Yes and No. Let us help you get the
clear picture...
There are many provinces such as British
Columbia, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, etc that
welcome entrepreneurs and business men seeking permanent legal status in
Canada to invest and establish a business in their respective Canadian
province thus injecting the local enoconomy with skills, talent, funds and
job growth contributing to the socio economic development of the province.
Every province has their own criteria and processing methods to attract
qualified individuals such as yourself, thus nominating you for permanent
resident status along with your family and dependent children below 19.
Quebec offers an Entreprenuer pathway
where if you have a minimum networth of $300,000 CAD and are able to
propose a viable business plan that involves a minimum $100,000 CAD
investment, you may be eligible to gain legal status via the selection
certificate of the Quebec government. Other terms apply. Visit the Quebec government website to learn more.
We feel that the province of Manitoba is
the best choice and is the most mislead category in the advertisements. As
compared to other provinces such as British Columbia who support temporary
legal status for businessmen to estalish and run their businesses and prove
that the terms of the performance agreement signed with them are satisfied
before issuing a nomination certificate, Manitoba signs a deposit agreement
for $100,000 CAD and issues nomination certificate directly upon
approval. The minimum investment required for Manitoba is $150,000 CAD in
addition to the $100,000 CAD refudable deposit. If the individual is unable
to satisfy the terms of the deposit agreement and does not execute the
proposed business plan by investing the required amount, the $100,000
deposit is lost. Not only do you need to invest $150,000 CAD but also have
to actively manage and run the proposed business just like any other
entrepreneur category offered by various provinces. This is the hidden
truth that many don't highlight. We would like to mention that there is no
effect on the permanent legal status gained if the terms of the deposit
agreement are not statisfied. Many people like to use Manitoba as a gateway
to Canada knowing that they will forfiet the $100,000 CAD deposit.
How
to Give Up Your Canadian Residency and Remain a Citizen
Giving
up your Canadian residency does not mean giving up your Canadian Citizenship,
giving up residency means that you have, for certain reasons - such as to
avoid high tax rates - decided to give up your Canadian residency and
become a resident of another country.
Unlike
the United States, Canada taxes its Citizens based on their residency,
rather than their Citizenship. But, giving up residency is not a step to be
taken lightly. The Canada Revenue Agency (CRA) will diligently check that
you have indeed severed all residential ties with Canada before they
consider you tax-exempt, this can be greatly complicated if your spouse or
dependents are still residents of Canada.
The
first thing the CRA will check is whether you, your spouse or dependants
have a dwelling place in Canada (owned or leased), such as a house,
apartment, flat, etc. - non-residents generally do not. If you and your
spouse are separated, they will not be considered as a significant tie to
Canada.
After
the CRA has verified that you do not own landed property, they will check
if you have any lesser ties to Canada, such as:
·
Personal Property: Cars, boats, motorcycles, furniture,
clothing, etc.
·
Social Ties: Club memberships, memberships to religious
organizations, union organizations, etc.
·
Economic Ties: Bank accounts, investment accounts,
credit/debit cards, involvement in Canadian businesses, etc.
All
ties to Canada are factors and will be considered by the Canada Revenue
Agency. But they will also look at your ties to the country you have
emigrated to and whether or not you have significant residential ties
to that country.
Since
Canadian citizens are taxed on their residency status, the CRA does not
take its job lightly; they will endeavor to verify that you have indeed
severed all residential ties with Canada. If you are planning to give up
your Canadian residency, be very sure that you are willing to cut all
residential ties.
GIVING UP CANADIAN RESIDENCY FOR TAX PURPOSES
Home
of the CRA by SimonP / Wikimedia Commons / CC BY-SA 3.0
If
you have properties, businesses and assets in Canada, giving up residency
for tax purposes can be complicated, you might want to consider hiring a
professional (lawyer, accountant) to assist you with the details. If you
choose to start the process without professional assistance, you should
check out this resource from the CRA which should
give you a basic idea of the steps that will need to take and the
consequences of giving up your Canadian Residency. Once you have changed
your residency status you will lose certain benefits and privileges, such
as provincial health insurance and tax credits, such as
·
The goods
and services tax/harmonized sales tax (GST/HST) credit;
·
The Canada
child tax benefit (CCTB) payments
(including those payments from certain related provincial or territorial
programs);
·
The universal child care benefit (UCCB) payments.
If
you receive any of the benefits listed above after you leave Canada, you
have to contact the International and Ottawa Tax Services Office as
soon as possible to avoid legal issues. Of course, you’ll no longer
be paying Canadian taxes, so this is a small price to pay!
If
you have a Tax-Free Savings Account (TFSA), you can still maintain it after
you leave and continue to benefit from your Tax-Free Savings Account;
however you cannot continue to contribute to it as a non-resident of
Canada, therefore your contribution limits will not increase. For more
information on Tax-Free Savings Accounts (TFSA) click
here.
BEFORE DEPARTING CANADA
Before
departing from Canada you might want to check your residency status, this
can be done by filling out form NR73 Determination of Residency Status (Leaving
Canada). After you have determined your residency status, you should
calculate your total assets; if your total assets exceed 25 thousand
Canadian dollars then you will need to fill out form T1161.
Form
T1161 will be scrutinized by the Canada Revenue Agency; do NOT
leave out any assets as this will result in the CRA not recognizing your
change of residency status. The list of assets form T1161 List of Properties by an Emigrant of
Canada should be filled out diligently.
MORE NEWS
·
Does Out-Migration Hurt Canada?
·
How Does Canada Compare on Taxes with the Rest of the West?
·
What CIC Taking Over Passport Canada Means For You
·
Apply for OAS as a Non-Resident of Canada
·
Revoking Citizenship in Canada and the USA
The
next step you need to take would be to complete Form T1243
Deemed Disposition of Property by an Emigrant of Canada;
this form is used to calculate and report any capital gains or losses on
property that you are deemed to have disposed of on the day you cease to be
a Canadian resident.
After
you have filled out these forms, you will need to start severing all residential
ties. It is best to start with your bank accounts - close all Canadian bank
accounts and inform the banks that you are changing your country of
residence; inform all income remitters (security brokers, etc) that you
will be changing your country of residence too. Just leaving Canada
will not change your residency status, you need to prove to the CRA that
you are indeed planning to give up your residency for an extended period of
time and that you have set down roots in another country or are planning to
settle down in another country.
Settle
all your Canadian Tax Obligations Before you Cease to be a Canadian
Resident
[Public Domain]
Make
sure to settle all your tax obligations before leaving Canada. If you have
no tax returns, you still need to inform the Canada Revenue Agency (CRA)
the date you left Canada. This should be done as soon as possible.
Hire
a Professional to assist you in your Change of Status
[Public Domain]
If
you are truly set on giving up your Canadian Residency for tax purposes, it
is highly recommended that you consult with a professional in Canadian tax law
to assist you - the steps required to change your residency status can be
complicated so you might also want to consider hiring an accountant ,
especially if you have a substantial amount of assets, as giving up your
Canadian residence can result in a substantial tax hit, Canadian tax laws
will deem you to have sold some of your assets at fair market value even
if you have not sold the items and any capital gains could be
subject to tax.
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