Quote:
Originally Posted by thebigmook
I made a similar post a few weeks ago here..
Basically in the last 3 years I have made about $700,000 USD.
I have not bought much with this money.. most of it is still in my bank account.
Now this was hard earned money. 1000 14-hour days day in and day out, 7 days a week.
Ive talked to tax attorney and an accountant, and it seems the only two options I have are
1) Flee the country and never return (you cant get extradited for tax evasion)
2) Pay the tax, all the late penalties.
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This is the third thread about your earnings??
Your attorney is correct and these are the two options you have - as was already stated in your first thread.
Your net profits before taxation are not your property - the balance after taxes have been paid is. Tho agree - it's easy to look at a bank account and think "that's mine" *lol*
OK.. quick analysis - $700K is 517,300 Euros or 350,700 Pounds Sterling. This is not a "massive" amount of money in other currencies.
On option 1 - flee the country. You will have your $700K intact and this can be significant in any country which accepts US$ where you can prob buy a home for $200-300K and keep the rest. A problem may start with passport renewal when you request a replacement passport at the Canadian embassy. It also means you are taking a risk if you visit Canada again.
Option 2 - Pay all taxes/penalties. Dunno, but you may be left with 250K-300K'ish and you are then free to organize your biz affairs to reduce taxation legally - and with no problems living or visiting Canada.
If you elect option 2, it's obvious you will need sensible taxation advice and one or more corps with the object of reducing future taxation.
There can be an advantage in moving to a low or no-taxation country if you can see a continuation in earnings of this level upwards. This can be done "legally" by paying all due taxes in Canada, then moving to another country. (Or, it can be done "illegally" by simply shipping out of Canada with your $700K) There is prob going to be personal background stuff to consider either way.