The number of tax haven countries and territories that are available in the world is on the decline as more and more countries are signing international treaties that will allow them to share the financial information between them and this will bring transparency to the financial transactions that are done across the globe. In general, using such countries and territories was considered as an offshore planning exercise by many, but the fact is that it not regular tax planning but an aggressive one and will be considered to be a form of tax evasion.
Tax Haven Arrangements
There are different arrangements that are possible when it comes to the use of such havens and some of them are being reviewed by the Canadian Revenue Agency.
• Tax Shelters – This is a sort of a gifting arrangement or acquiring a property where the tax benefits that are available to you will be equal to or more than the cost that you have had to spend for it.
• Offshore Investment Entities – These are companies that…