5 thoughts on “Unjust Taxation on Worldwide Income”

  1. It's very easy to find information as to why one SHOULD give up their US citizenship if they can, but I can't seem to find anything about the DOWNFALLS of this. For example… What if a family member becomes ill and you need to move back for a period of time (months or years) to take care of them. Can you provide any information about the DOWNFALLS of giving up one's US citizenship, and how to manage those downfalls?

  2. I am an American citizen, living and working in China last 5 years. Since May 12, 2011, I have been in Berlin, Germany in a process of opening a Berlin art gallery. As an American, my 3 months stay in Berlin will expire in August 12. I can easily get a artist work visa in Germany but as I am in management position, I can not get a German working visa for the company tax reason.

    I must get other EU working visa as soon as possible and I would also like to eventually obtain Eu citizenship and my requirements and preferences are listed below.

    1. I would like to stay a few months out of a year in Corsica or Italy in the future and I can speak conversational French.

    2. Easiest work visa EU country is imperative as I don't have too much time.

    Best regards,


  3. As a Canadian who worked overseas as an expat, I can unequivocally state that the CRA's arms are far longer than you suggest. Canadian taxation on world-wide income is based on residency and domicile (two tortuously difficult to define variables as they are based on your "links" to Canada, rather than simply length of time living in the country, and the CRA determines these on a case-by-case basis) as well as any relevant tax treaties between Canada and the host country. The tax treaties are generally in place to avoid double taxation on the same income and to help clarify which jurisdiction has first crack at taxing the income. For example, if I exercise options while an expat, but those options were granted while I was in Canada, then I would pay Canadian taxes on income.

    Even if I went to work for an employer in a "tax-free" Middle Eastern country (say, Bahrain), I'd have to be very careful as to how to leave my affairs in Canada so as to be exempt from Canadian taxes. The CRA looks at time spent in/out of the country, your primary residence (i.e. will you continue to own a home in Canada), financial links to Canada (bank accounts, credit cards, investments, pensions), driver's license, health care situation, how your foreign employer pays you (i.e. into a foreign account or into a Canadian one) and even your "intentions" for returning to Canada (i.e. many expat jobs are arranged on a 2-4 year assignment).

    The long and short of it is that if you want to lower your Canadian tax bill while working overseas, you need to plan well in advance, and likey consult an international tax expert and legal advice (a provision I always have included in my expat package). Ultimately, though, the determination will come from the CRA, and not just "if you don't live ".

  4. Well your explanation is valid for those working and earning income from outside Canada and resident outside Canada it fails to tell the full story.

    If you receive a pension that orginates in Canada, for example Canada Pension Plan or a corporate pension or pension from being a public servant you are subject to a 15 to 25% witholding tax at source on that income.

    So you move from the Country and consume no paid for tax services, but the federal authority pulls at a minimum 15% of your pension income.

    Now if you were a pure investor and put your money off shore and lived off shore you would be better off .. paying no Canadian Income tax and living in a tax environment where off shore income was not taxed.


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