Moving assets legally from Canadian corporation to Panama company

[Panama]

Hello, I am a Canadian resident and have an active corporation in Canada. I am planning to move myself and my business to Panama. The tricky question is HOW to legally move assets (cash) from the Canadian corporation to the new Panama corporation? Which implications may occur? Thanks!

 

[avalanche]

Hello, I am a Canadian resident and have an active corporation in Canada. I am planning to move myself and my business to Panama. The tricky question is HOW to legally move assets (cash) from the Canadian corporation to the new Panama corporation? Which implications may occur? Thanks!

That is probably the question for your tax advisor in Canada..

 

[LoveMyLife]

Which exact assets do you need to move? There is no way how to help you without knowing a details. Moving money is not the same like moving elephant.

 

[Panama]

Thank you for your reply. My corporation has cash in the bank and some sellable inventory (we sell on Amazon, so all inventory is stored there).

 

[LoveMyLife]

Thank you for your reply. My corporation has cash in the bank and some sellable inventory (we sell on Amazon, so all inventory is stored there).

It is possible to make a sale of part of canadian corporation (including assets and liabilities) to a foreign company. Be ready for being taxed for this in Canada.

Amount on a contract will be your personal income in capital gains. Taxation depends on more conditions.

How does it technicaly work?

1. Sign contract of selling a part of corporation to another corporation
2. Move inventory to a foreign storage (it can not stay in Canada)
3. Wire money from account of canadian company to a business bank account of Panamian company

You have to pay taxes on capital gains income in Canada from amount on contract. If you will try to use amount lower than is difference of assets and liabilities, you can have a problem to be investigated for a tax fraud.

As canadian company will have no assets and liabilities after this transaction, you just dissolve a canadian company.