• Apr
    2

    How to Legitimately Avoid Paying Income Tax in Canada

     

    In one of my articles I wrote that it’s possible to stop paying income tax in Canada. The most obvious way is to leave the country and become a non-resident, but that’s not a practical solution for many Canadians. Today, I want to offer another way, as detailed in the book: My Blue Haven, by Alex Doulis, which “explains how to legitimately avoid paying taxes forever.”

    On thing I should say is this, this method will be almost impossible to use if you’re an employee, mostly because your taxes are deducted at source and you have little or no say over that. The methods in My Blue Haven are best suited to someone who runs offshore businesses (and it’s not as difficult as you might think).

    In this book the reader is introduced to the offshore. Author Alex Doulis shows you how to structure an offshore business and position yourself in such a way as to pay the lowest income tax possible in Canada (and quite possibly none at all). This is an in-depth process and is beyond the scope of this article to explain it in full, but here’s a quick snapshot.

    Essentially you would have to build an offshore business, but things get really sticky in terms of building the company (not to mention how the CRA sees it). If you own the company you’re on the hook for income tax but there is a way around that. This is to have control of the company and the ownership would be in the hands of someone you trust, and preferably not someone who lives in Canada.

    The next step is to set yourself up as a consultant to the corporation and direct the corporation to pay for your living expenses, such as rent and vehicle. On top of that you could direct the company to pay you a stipend. If you do this correctly you could really reduce your tax profile. The key is not to abuse the system.

    That’s the gist of it. To get the full story, read My Blue Haven.

    After that, I recommend speaking with Alex Doulis directly to learn how the process works.

    Another option, as stated in the other article is to read The Tax Collector’s Bible, which gives you several options for becoming a tax exile. Some of the information is highly controversial and if you have any misgivings, I recommend speaking with professional.

    WARNING: As Canadians, many of us are raised with the belief in fairness, and especially in our own country. When you read the books above, be aware your understanding will be permanently altered. I cannot stress this strongly enough. Don’t read these books unless you’re prepared for a permanent change in your perception.

    Other Articles in This Series

    Note: This article contains affiliate links. If you buy something through the links here, I might receive a commission.

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