If you have an offshore account which you have not been declaring to the tax authorities you have a right to be worried. The movement afoot to force tax haven countries to release information is ongoing in the United States and you can be sure Canada will follow suit.
There are valid and legitimate reasons to have money offshore and that is for reasons of “Asset Protection”. This is done through as Asset Protection Trust where as an individual you face risks such as malpractice suits, potential risks via divorce issues, difficult family estate planning issues and so on. Bear in mind that the tax has to be paid.
A recent update in the WSJ–
The U.S. and Switzerland said they agreed to share information on potential tax evaders for the first time, the latest step toward eroding Switzerland’s renowned banking secrecy.
U.S. Treasury Secretary Timothy Geithner said the deal, which the governments began negotiating in April, “will help bring an end to an era of offshore accounts and investments being used for tax evasion.” The U.S. declined to release details until the deal, which could face a referendum in Switzerland, has been completed and signed.
Switzerland and other tax havens in Europe and the Caribbean came under intense international pressure to agree to share tax information with other governments ahead of a summit meeting of the Group of 20 governments in London in April.
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