Economic Migrants from Canada
The Rise of new Economic Migrants from Canada
Netherlands Antilles a Tax Haven?
The irony. Canada was the country of choice. Remember the flight of economic migrants to Canada and other countries during the fearful days of China’s takeover of Hong Kong? Their capital influx was very much welcomed to prop up a less than stellar economy. But the tide had been changing for some time – has this been biting the Canadian economy? Perhaps. But then, I’d take some of their cash rather than none at all. If government policy is seen cracking down on overseas investments, then it’s just not too hard to see large chunks of cash fleeing and never to return.
Minister for Internal Revenue Jean-Pierre Blackburn said, “The amount Canadians have invested in countries that could potentially be used as tax havens amounted to C$146 billion in 2009, up from C$88 billion in 2003.” Is this another G20 Bank Secrecy bashing or fishing expedition?
And in the same breath adds a qualifier that “Safeguarding cash in those places is not illegal but makes it easier to avoid declaring income for tax purposes.” Yes, it’s not illegal. It wasn’t illegal then, why is it supposed to be now? It was quite clear that investing overseas is very much a welcomed activity especially when the home market tanks and investors get screwed out of their hard earned savings. I wonder if protectionism is rearing it’s ugly head. Canada should be very careful not to create a Bank Secrecy backlash they cannot recover from on the world stage.
Lately, UBS, Swiss Banks, Leichstenstein, Cayman Islands has been mentioned and the Netherlands Antilles is the only jurisdiction which has a tax treaty with Canada. I wonder why it has taken so long?
Let’s face it. North America is far from the ideal investment continent with tiny or negative growth prospects. While other developing countries offer far greater returns prospects. As an added bonus, these jurisdictions also offer very low taxation – like Hong Kong. Large financial centers can have capital that moves very quickly and efficiently. And protectionism can be in the way of services, not just goods…cash is a commodity and banking is a service.
I’d much rather see a more comprehensive reduction in financial burdens on the population and much better stimulation of the economy than having to go after so called tax cheats. The returns thus far of C$25Million seem hardly worthwhile considering the amount of time and effort required to procure that money. Well, come to think of it, governments spend far more for negative returns…so this might not be too bad of a venture after all. But Minister, do you ever consider the negative impact this might have on how Canada might be viewed on the world stage? Afterall, the past economic boom has been also in large part involving the immigration influx. It affects real estate, it affects the banking sector, it affects world trade, it affects world relations. I sincerely hope that is not being affected negatively, all for the sake of the arbitrary “G20 rules”.
Just imagine, Canada goes crazy and starts to be seen to be clamping down on hard earned savings…and if the savings are large…is it too hard to imagine a new class of Economic Immigrants? Put another way. People will likely flock to their destination of choice. After all, a large retiring population seeking a modern country with great medical resources, and endless business opportunities might just be the ticket out of a cold and tax unfriendly country. I’d hate to see “snow-birds” become permanent migrants to a warm and friendly place.
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