The 'Panama Papers': What Do They Mean For You?

Many people are reading with interest the many articles being written about the 'Panama Papers'. Most are not impacted and read them out of curiosity. However, for some Canadian residents, there may be cause for concern, but also, a solution.

The Problem: Canada Taxes Non-Canadian Investments

As a resident in Canada, you are subject to tax on your worldwide income. You have an obligation to report all of the income you earn each year in any jurisdiction in the world. Most people think that everyone is aware of this, but our experience is that this is not the case. While Canada taxes its residents on worldwide income, many other countries do not. As a result, immigrants to Canada from other jurisdictions don't always attain a thorough understanding of the Canadian tax system and don't necessarily think that taxation would be different in Canada than many other jurisdictions around the world that only tax domestic income.