Originally Posted by cwyckham
If I'm a resident of Canada
, then no I can't just move my money
out and invest elsewhere without being taxed by Canada. However, if I'm not a resident of Canada (and not a "deemed resident"), then I can absolutely move my money
anywhere I want and invest it without Canada wanting a piece.
Once I leave, I leave. I know because I've done it. I would still be taxed on any investments I left behind in Canada, but not on anything outside of Canada.
As a cruiser, though, one must be careful of the residency thing. In general, the tax treaties and laws are all written such that you have to be a tax resident somewhere. If you're off traipsing around the world, then it will usually be the last place you lived.
Canada will consider you owning property and having bank accounts back in Canada to mean that you're still a deemed resident for tax purposes.
Of course if you leave, never to return, they will take thier pound of flesh on the way out and then you are free to do as you please (if you have complicated deals involved, I wouldn't be suprised if they keep an eye on your for a few years to make sure you didn't game
If you retain your ties to Canada, they will continue to want their regular pound of flesh.
You can thank the guys gaming the system for the rules. The American system allowed a lot of people to get very rich and then they tried to game
the system so rules were made to deal with the issue. Some countries tried to help them for a slice of the profits and so now reporting rules have become a pain.
As far as your original example, every country I am aware of requires profit and loss to be calculated based on their own currency and that opens you to currency valuation changes. There is an implicit assumption that as you are retaining your citizenship, your intent is to ultimately return. If it's not, break the tie and don't worry about it.