Why is the Canadian Limited Partnership sought after?

[CanadaOffshore93]

Hey all,

After scanning through the threads, I've noticed that Canadian Limited Partnerships (LPs) with Canadian bank accounts are in fairly high demand. As a Canadian, this interests me...

Why is this the case? I've heard some mention Canada as a secrecy haven. I really cannot see how this is, especially given Canada's commitment to the CRS.

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[Marzio]

Well, because partnerships are tax transparent so if you are tax resident in a territorial tax country or zero tax country you will not pay any taxes. Unfortunately as a Canadian resident there's no point for you to use LP.

 

[CanadaOffshore93]

Well, because partnerships are tax transparent so if you are tax resident in a territorial tax country or zero tax country you will not pay any taxes. Unfortunately as a Canadian resident there's no point for you to use LP.

Interesting.

I have read about limited partnerships being used to purchase real estate anonymously, but not what you describe. Can you or anyone else elaborate on Canadian Limited Partnerships more?

Why would a person in a territorial tax jurisdiction be interested in a Canadian LP when they presumably wouldn't be tax on their international assets anyway? I'm thinking the same in regards to a person in a zero tax country as well.

 

[Jerry1911]

Because Canadian LPs have no UBO reporting obligations unlike most other western countries/entities.

 

[CanadaOffshore93]

Because Canadian LPs have no UBO reporting obligations unlike most other western countries/entities.

Related question: Wouldn't Canadian LPs have reporting obligation per the CRS? Or is it only the general partner that has to report? The limited partner(s) get to stay behind the scenes?

 

[JackAlabama]

Interesting.

I have read about limited partnerships being used to purchase real estate anonymously, but not what you describe. Can you or anyone else elaborate on Canadian Limited Partnerships more?

Why would a person in a territorial tax jurisdiction be interested in a Canadian LP when they presumably wouldn't be tax on their international assets anyway? I'm thinking the same in regards to a person in a zero tax country as well.

Acting thru a Canadian vehicle and creating invoices to clients from it is coming with a much better reputation than lets say a Paraguay or Panama company

 

[Jonathan169]

If you're Canadian look at UK LLP / USA LLP or NZ LLP.

 

[Jerry1911]

Related question: Wouldn't Canadian LPs have reporting obligation per the CRS? Or is it only the general partner that has to report? The limited partner(s) get to stay behind the scenes?

If you open a bank account in a CRS jurisdiction yes, I was referring to the UBO registry of the country or lack thereof. (see UK LLPs and Companies House)