Each year many Canadians take the plunge and invest funds in offshore investment accounts. They do so in an attempt to benefit from the variety of tax advantages offered by such investment vehicles. In a typical scenario, an investor will incorporate and deposit his/her funds into an offshore holding corporation (Co. X). Co. X will then open an account and deposit “its” funds with a financial institution based in a suitably welcoming foreign (offshore) country which will in turn re-invest those funds, as an offshore investor, through a domestic investment account with a brokerage of the initial investor’s choosing.

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