David Rotfleisch, a tax lawyer with Rotfleisch & Samulovitch P.C. in Toronto, commented on how the big companies in Canada avoid millions of taxes. While passive income for a Canadian-controlled private corporation (CCPC) is subject to a tax rate of about 50 per cent, a non CCPC is taxed at about half of that rate.
“‘This BVI continuation technique exploits the anomaly between the taxation’ of these two types of corporations.”
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