holding company for tax purposes

We were. But they changed the law so you have to declare yourself as the beneficiary of the corporation and pay the regular taxes. Google it. RBC wealth management posted an article awhile back on it.

>>1593804
I heard about it but I read few recent articles (2015-2016) about the new strategy being used,
basically some journalists did an undercover interview with hidden camera with a huge firm in barbados and they will openly lie to the canadian tax agency and say that they are the ones operating the business. They will take care of all the paperwork, tax fillings, they have a huge building with hundreds of corporation registered. it's all legal too, barbados is the 2nd recipient of canadian foreign investment after the US (over 60 billions $cad a year)
that's more than to the UK, France, Germany

>>1593808
So your question is about fraud, not tax strategy. By all means, commit fraud. Since you're knowingly doing so you do risk penalties and jail time.

>>1593811
how is it fraud ?
when I say "lie" I should have said "technically lie" because they do in fact operate your business. You just get paid dividends for doing nothing but benefiting of the 0, which is ethically questionable

>>1593813
sorry my post got autoposted*

it is ethically questionable because "against the spirit of the tax law".
Lawyers and accountant argue that this scheme is 100% legal, liberals have done nothing to close the loophole. it was in fact opened by liberal government in the 1980s and benefits so much the corporations and lobbies that there's no chance we will see change anytime soon

there are billions of $ flowing from and to Barbados, do you really think all those people are all doing fraud ?

>>1593813
Technically lie and lie is the same thing. Again, it works. But don't be surprised when you get audited. You'd also want to speak with a tax lawyer, all of which is more trouble than its worth if you're not making millions in sales.

>>1593817
I've been through the tax treaty and I've read several cases of jurisprudence were the court validated the scheme as legal, I think this is a fascinating subject
im taking corporate taxation in Winter (3L law student) so I don't know much about it except the fact that I could send you articles written by tax specialists on this subject

I'm not using it myself but I can see it as a great opportunity of potentially getting 99,75% of your income tax free which is great if you operate an online business on the side
you do your duty as a citizen and pay taxes on your salary, but you get to keep your hard earned online business salary (which is the way it should be).
I think it is an interesting subject that no one really talks about

>>1593819
Bruh.. dividend withholding tax is 15%. I don't think you have as much info as you think you do.

>>1593822
nah it's 0,50% (up from 0,25% few years ago_ for dividends that flow from Barbados to a tax resident of Canada, if you fulfil a certain criteria (like the one you mentioned, the company has to be "run" locally, but that is no proble mas the firm will take care of that for you)

http://barbadosoffshoreadvisor.com/barbados-tax-treaties/barbados-spain-tax-treaty/

>>1593841
sorry that's not the good link

read this great article instead : http://www.ledevoir.com/economie/actualites-economiques/400814/extraitd

Alain Deneault is a lead researcher in canadian tax evasion and offshore taxation , he wrote a few good books that I recommand

bruh i aint no frog.