How Canadians Can Pay ZERO Taxes Legally! Canada Taxes and Canada Tax Residency Explained | Summary and Q&A

TL;DR

This video discusses the complexities of the Canadian tax system and provides strategies for Canadians to lower their taxes.

Key Insights

• 🚕 The Canadian tax system has become overly complex, with over 2,000 pages of documentation, making it important for Canadians to understand the rules and regulations.
• 🖐️ Residential ties, including homes, spouses/partners, and dependents, play a crucial role in determining tax residency status in Canada.
• 👔 To reduce tax liability, Canadians should sever their residential ties, dispose of personal property, and establish ties in a new country.
• 🚕 Canada's departure tax imposes capital gains tax on certain types of property when leaving the country.
• 🚕 Tax treaties between Canada and other countries can provide advantageous tax arrangements for individuals moving abroad.
• 🚕 The video suggests considering countries like the UAE, Georgia, and Portugal for their favorable tax systems.
• 🚕 Canada has discussed implementing a wealth tax, unrealized capital gains tax, and potentially even a citizenship tax in the future.

Transcript

off to one of the worst tax systems in the world a country that doesn't tax on citizenship but makes it so hard to get out that you would almost guess that they're trying to follow the us the way that they're going we're trying to tax every single person and not let them leave that is canada if you're a canadian resident canadian citizen or you wan... Read More

Questions & Answers

Q: What factors determine a person's tax residency status in Canada?

The residential ties with Canada, such as owning a home, having a spouse/partner and dependents in Canada, play a significant role in determining tax residency status.

Q: How can Canadians reduce their tax liability when moving abroad?

By severing residential ties, including giving up their home, disposing of personal property, and breaking social ties, Canadians can reduce their tax liability when moving abroad.

Q: What is the departure tax in Canada?

The departure tax, also known as the deemed disposition tax, is a capital gains tax that individuals must pay when leaving Canada. It applies to certain types of property, such as shares, jewelry, art, collections, and cryptocurrency.

Q: Are there any tax treaties between Canada and other countries?

Yes, Canada has tax treaties with numerous countries. These treaties can provide beneficial tax arrangements for individuals who move from Canada to another country.

Summary & Key Takeaways

• The Canadian tax system has become one of the most burdensome in the world, with over 2,000 pages of documentation and strict regulations.

• Canadian residents must consider their residential ties, such as homes, spouses/partners, and dependents, when determining their tax residency status.

• To lower your taxes as a Canadian and potentially pay zero tax, it is crucial to sever residential ties, dispose of personal property, and establish ties in another country.