A non-resident trust can be used to carry on business in Canada. A non-resident trust carrying on business in Canada will be subject to ordinary Canadian income tax on any trading profit, as if it were an individual with the highest marginal tax rate. The advantage of using a non-resident trust is that, unlike a corporation, there is no Canadian branch tax or withholding tax on the distribution of after-tax profits by a non-resident trust to its beneficiaries. A trust is not subject to federal or provincial taxes on capital. However, a non-resident trust does not qualify for certain withholding tax exemptions that are available to corporations.
Additional posts from the blog
Canada’s first set of harmonized derivatives rules (trade reporting) published by three provinces: Ontario, Quebec and Manitoba
As mandatory reporting of OTC derivative contracts to trade repositories (TRs) (one of the G20 commitments) takes effect globally, the Ontario Securities Commission (the “OSC”), the Quebec Autorité des marchés financiers (the “AMF”) and the Manitoba Securities Commission (the “MSC”) on November 14, 2013, simultaneously published the first province-specific set of harmonized derivatives rules (the “Rules”) in Canada.
In this presentation, Dentons' Jeff Bastien, Andrea Raso and Dana Hooker discuss the appropriate ways to deal with employee absence.
On November 7, 2013, the Toronto Stock Exchange (“TSX”) issued a Staff Notice to Applicants, Listed Issuers, Securities Lawyers and Participating Organizations (“Staff Notice”) that provides guidance for companies considering a listing on the TSX.