I am a Canadian looking to set up an overseas bank account (re. tax shelter), any suggestions?

Question

I am about sign a personal services contract with a UK based company. The contract will pay me significant $$$$ over the next few years. I would like to shelter some of my earnings by putting the majority of funds in an offshore account.

Being Canadian I am curious to know if there are preferential locations.... Caymans.... Isle of Man.... etc

As well I am unsure as to which banks are more reliable than others. Any pointers would be appreciated.

Answer 1

Just be careful, alot of these tax havens have started to report account information (UBS).  If/when CRA finds out the interest and penalties are massive.  I've a few clients who have been gotten assessed  on this type of income

Caymans, just stay away from banks with US or CDN affiliations

Answer 2

I know that in the States - it's gotten harder to hide funds due to the Home Land Securtiy Protection Act.

I suggest setting up a dummy corporation - $100 if tha - name your cat as presidentt. Use the dummy corp to buy property - that filters money and gives a mortgage tax advantge.

Also consider setting up a "Charity" fund. Easier than most people think. Name yourself or just your family as recipients. It's a bit of paperwork but again very legal. Very rich people are known to set up scholarship funds that can only be accessed if you are family members.

Anyway - give from your corp to your charity. More tax benefits for giving...but you gave to yourself. Then make sure the books are clean on the charity and that you spend that money.

Have fun! Get a great system for keeping track of it all. Use the same accounts the rich do! Find them through Good Ole Boys at Country Clubs...they know where the bodies are buried!