Canada Income Tax

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Subject: Canada Income Tax
  I have read the following regarding the Income Taxation in Canada.

"CANADA TAXES INDIVIDUAL ON THE BASIS OF THEIR RESIDENCE AND NOT THEIR CITIZENSHIP. A CANADIAN PERMANENT RESIDENT MAY APPLY TO CANADIAN CITIZENSHIP AND A CANADIAN PASSPORT AFTER 3 YEARS. CANADA TAXES ITS RESIDENTS ON THEIR WORLDWIDE INCOME, BUT ALLOWS OFFSHORE TRUSTS FOR NEW PERMANENT RESIDENTS"

"CANADIAN CITIZENS WHO ARE NON-RESIDENTS OF CANADA DONOT PAY CANADIAN TAX ON THEIR WORLDWIDE INCOME. NON-RESIDENTS PAY CANADIAN TAX ONLY ON CERTAIN CANADIAN SOURCED INCOME AND CAPITAL GAIN, THERE ARE NO ESTATE DUTIES OR SUCCESSION DUTIES IN CANADA"

It further states:

" NEW CANADIAN PERMANENT RESIDENTS CAN SIGNIFICANTLY REDUCE OR EVEN ELIMINATE CANADIAN TAXES WITH PROPER PLANNING IN ADVANCE OF THEIR ARRIVAL. THEY ARE PERMITTED TO ESTABLISH A PROPERLY STRUCTURED OFFSHORE TRUST TO SHELTER NON-CANADIAN SOURCED INCOME AND CAPITAL GAIN FOR UP TO 5 YEARS AFTER THEIR ARRIVAL IN CANADA. DURING THIS TAX HOLIDAY THE INDIVIDUAL CAN ACQUIRE CANADIAN CITIZENSHIP AND CHOOSE TO BECOME A NON-RESIDENT FOR CANADIAN TAX PURPOSES. IN THIS MANNER THE INCOME AND CAPITAL GAIN GENERATED BY THE TRUST NEVER FALLS INTO THE CANADIAN TAX NET"

I am an Engineer and don´t understand these stipulations. Could someone analyze and throw more light on:

1. Are these above statements correct?
2. How to form the Offshore Trust?
3. What are the merits and demerits of such an offshore Trusts?
4. Could someone provide more information and web links for further study.

Thanks a lot to all in advance.

[30-05-2008,13:25]
[**.62.225.3]
PPG
(in reply to: Canada Income Tax)
Contact an accountant who is knowledgable regarding Canadian Tax Law.

Roy
www.cvimmigration.com

[31-05-2008,09:40]
[**.52.216.11]
Roy
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