Quote: Originally Posted by Andem
Wrong. Read above.
I'm embarassed that this thread is filled with so much misinformation.
You may be a citizen of both the USA and Canada, but if you aren't filing tax returns to the IRS, you are breaking the law and can be criminally prosecuted if you return to the US, or by extradition from countries where tax evasion is a criminal offense (Canada, yes, Switzerland, no). Source (external - login to view), random Google search
** edit: Sorry, I just noticed you live in the US. If you ever do decide to live in Canada, you are required to file and pay US taxes until you die or renounce US citizenship.
>> BUT, far too many people, including Canadians with dual citizenship, are hiding some or all of their income behind banking secrecy laws, etc. The US is cracking down on this (as they should have long ago).
Please give us some real numbers with sources! I can't even count on one hand of any Canadian I know who has any knowledge of bank secrecy laws. It's automatic to assume that Switzerland or Cayman Islands are the only known countries with bank secrecy, but the aforementioned aren't exactly "optimal tax regimes".
Who is the US to "crack down" on the laws of sovereign countries? Switzerland is one of the most democratic countries in the world. The United States has no right to "crack down" on people doing business in that country, outside of their own borders. Either way, tax law in the US is constitutionally questionable.
Right you are Andem.
This thread is loaded with erronious assumptions while your posts are pretty much spot on information wise.
I am a dual national: Canadian British(which is EU).
I worked for an international consulting company for twenty five years while retaining residency in Canada.
I have also held multiple USA work permits under NAFTA because of my engineering background.
The IRS became very agressive about me agreeing to accept a green card ( bit of a switch I know but they actually tried to pressure me into American residency).
And yes I had to file for taxes with the IRS.
And yes I ended up paying American taxes.
And that was when I stopped accepting consulting work in the US.
All holders of a US passport must file American taxes.
All income must be reported.... and all means ALL.
That is American law.
In Canada if you retain residency you report all income.
If you choose to go non- resident and retain your Canadian passport you may be temporarily excempted from filing Canadian taxes.
I would recommend getting advice from a lawyer expierenced in international tax law as well as an accountant skilled in the same field.
However upon your return and resumption of Canadian residency once again you will be required to report and pay taxes on all income and that of course would include on all interest, dividends or capital gains of any foreign assets.
Most countries now have tax treaties and will happily report your foreign earnings to the Canadian or American tax authorities.
The last few holdouts are countries like Yemen, Iran, Iraq and so forth.
Going non- res on a Canadian or American passport and dodging taxes is a very tricky bit of business.
I always paid every penny due on my foreign income and assets.
But because of my travels and associations I know a fair bit about trying to dodge taxes internationally.
If someone is interested in how that works I can lay out the basics on another post.