Canada also has an exit tax. For individuals as well as businesses.

It's an exit taxes, but as far as I'm aware, it simply taxes you on all assets as if you disposed of them the day you leave.

That doesn't seem particularly unfair. If you can image a scenario where someone buy Apple at $1, and it's now worth $1,000. They just leave Canada, pay no tax, then sell in a low tax jurisdiction.

However, it can be a massive pain in the ass for illiquid assets or assets you don't intend to sell at that point in time. A good example might be a pension. Getting hit with a tens of thousand dollar tax bill for a pension you won't receive for another 2 decades is painful.

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jorams 6 days ago | parent | next [-]

> as far as I'm aware, it simply taxes you on all assets as if you disposed of them the day you leave.

That is also what Germany does. The 13.75 multiplier is the fallback number used if there is no valuation for the company. It's such an irrelevant number that tax advisers writing about the topic don't even bring it up. Get a valuation.

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tomcam 6 days ago | parent | prev [-]

> it simply taxes you on all assets as if you disposed of them the day you leave.

Same thing in the U.S. but I think the first $800 or so is exempt.

	▲	tomcam 5 days ago \| parent [-]
		EDIT: I meant $800K

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Joel_Mckay 6 days ago | parent | prev | next [-]

They do tax on residency rather than citizenship. If you are a structured embezzler in another country, than expect the CRA auditors after 184 days in Canada.

Also, Canadian laws don't stop at the border as a citizen... so breaking laws in other places still puts you in legal peril for extradition.

Notably, corporate tax rates are often much lower in Canada, and export free trade is available with most trading partners. Note the US taxes on citizenship regardless of where you live (or if you hold multiple citizenship), and failure to file your IRS statement was an $8k fine last I heard. The fine often stays even if you owe the IRS $0, and temporarily live in another region.

The TLDR version: talk with corporate tax accountants in each region before filing, and do not assume the late tax filing fines will magically not apply to your situation. AMCHAM will usually help guide investors on their filing obligations for type C corporations in the US. =3

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dismalaf 6 days ago | parent [-]

Departure tax for individuals:

https://www.canada.ca/en/revenue-agency/services/tax/interna...

Departure tax for corporations:

https://www.canada.ca/en/revenue-agency/services/tax/interna...

	▲	Joel_Mckay 6 days ago \| parent [-]
		That is nuts, I always assumed that would fall under the capital gains taxes in the investors T5 filing at the end of the year. (could be dramatically lower rate if you get stuck with cash at the end of the year) Now I know why the brand trademarks are usually held by an independent entity, and licensed to a domestic number company. I guess that is why we pay the corporate accountants. lol =3

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lostmsu 6 days ago | parent | prev [-]

At least Canada steps us cost basis upon becoming resident AFAIU.