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Thursday, 31 December 2015

Why Canadian Tax Advice For Non-Resident Investors Is Important

By Amy Graham


Many investors prefer investing in oversea countries. The tendency of investing in foreign countries has of late been increasing with an alarming rate. The major cause of this trend is that many people think once they invest overseas, their wealth will be underestimated. As a result, they will be charge less duties. All the same, investing in foreign countries does not make any difference. The tax system of many countries is in position establish the value of your wealth regardless of the country. Due to this, individuals cannot avoid paying their levies. Competent experts are recommended in offering Canadian tax advice for non-resident investors.

In almost all nations, the government has to involve itself in levy issues. It mainly targets those foreign investors who have come to invest in the county. Failure to play its role in this sector, there can be a big mess to the economy. Here are some of the reasons why the taxation in the country is important. For instance, through levy, it becomes possible to control the establishment of business. In addition, the government is in position to control illegal establishments.

Taxation is one way through which economy of the country can be protected from foreign dominance. Imposing high duties to imports will lower their demand. This is because their prices go high thus the locals will prefer using locally produced commodities. Owing to this, there will be increased consumption of local goods and this promotes the economy of the country.

To promote regional balance, the government can use the methodology of imposing heavy levies to those business that are established in urban areas. In addition, less levies are executed to those investors who are willing to invest in rural area. This encourages entrepreneurs to establish their enterprise in rural area. Owing to these actions, regional disparity is minimized.

There are those individuals who are extremely rich while others are average. To reduce this impact, heavy duties are imposed on such individuals. All their wealth is taxed heavily as a way of maintaining the stability of economy. Those individuals who have average wealth are not highly taxed. Through this practice, the government is in position to maintain the economy of a country stable since there will be no excess money in circulation.

Levies collected from different sectors of economy forms the larger percentage of revenue of the government. These revenues help in meeting the expenditure budget of a country. There are different types of duties, which are gathered to form these revenues. Among them are the, land revenue levy, income tolls and custom duties.

In any given country, the taxation sector is believed to be among the sectors that offers a many employment opportunities to a large number of individuals. Any time when this sector plans to increase its employees, many jobless people secure job and this helps to improve their standards of living.

To prevent foreign investors from dominating the local industries, the government usually inflicts heavy duties on those goods that are produced by these investors. This helps to reduce the demand of foreign products. On the other side, the demand of locally produced goods increases.




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