Murray Edwards Changes Residency from Calgary to London

[CaptainYooh]

Now, this was pretty quick! I am sure there will be more super-rich Canadian people doing this. Edwards is reportedly worth about $2B. There is no information about his reported income; but let's do some primitive math for a ballpark estimate. Assuming he makes 5% annually on his net worth, that's $100M/year. So, instead of $40M in his income taxes annually, Canada will get nothing.

http://calgaryherald.com/business/en...gary-to-london

Quote:
Murray Edwards, one of Canada’s wealthiest people, is changing his residency from Calgary to London.
...
Two sources familiar with the situation who asked not to be identified said Edwards is switching his residency to the U.K. for tax reasons. Income taxes for high earners in Alberta increased dramatically over the past year with the top federal/provincial combined marginal rate rising from 40.25 per cent in 2015 to 48 per cent in 2016...


Paige MacPherson, Alberta director for the Canadian Taxpayers Federation, said she doesn’t know of any specific other examples but she’s not surprised people are considering leaving Alberta given the “double whammy” of provincial and federal tax increases.
“This is the problem with levying taxes on high-income, high-skilled individuals,” she said.
“They are an extremely mobile tax base … studies show you often don’t get the return you’re expecting to get from levying higher taxes. In addition, it makes it more difficult for the province to attract those high-skilled workers, including people like CEOs and engineers.”


Catherine Brown, a law professor at the University of Calgary who specializes in taxes, said the U.K.’s top income tax rate is only a few per cent lower than Canada’s (45 versus 48 per cent) but there are big benefits there in terms of lower taxes on capital gains — profits earned from the appreciation of value on property such as a house or a company’s stock...

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[VladtheImpaler]

Thanks NDP?

[TorqueDog]

He does this and yet he wants some of our tax dollars to pay for CalgaryNEXT? Seriously Murray?

[CorsiHockeyLeague]

Originally Posted by CaptainYooh

So, instead of $40M in his income taxes annually, Canada will get nothing.

Somebody doesn't know how the income tax act works...

[CaptainYooh]

Originally Posted by VladtheImpaler

Thanks NDP?

Not just NDP. Working people earning over $200,000 have now been hit by the provincial tax increase (thanks, NDP), federal tax increase (thanks, Trudeau), salary cuts (thanks, the economy). Potential provincial sales tax - a big possibility, carbon taxes transferred to the consumers somehow - big possibility. But you do know about all of these, don't you?

[CaptainYooh]

Originally Posted by CorsiHockeyLeague

Somebody doesn't know how the income tax act works...

I prefaced my math with "primitive" and "ballpark" estimate. Feel free to correct me (instead of being you know who )

[VladtheImpaler]

Originally Posted by CaptainYooh

Not just NDP. Working people earning over $200,000 have now been hit by the provincial tax increase (thanks, NDP), federal tax increase (thanks, Trudeau), salary cuts (thanks, the economy). Potential provincial sales tax - a big possibility, carbon taxes transferred to the consumers somehow - big possibility. But you do know about all of these, don't you?

Yes, I am getting hit by all of them. And the corporate tax hike too.

[CaptainYooh]

Yeah, that too...

[VladtheImpaler]

Originally Posted by CaptainYooh

Yeah, that too...

Well, not the salary cut I guess. Unless I cut my own salary. I will just cut my wife's.

[Clarkey]

Good for Murray, instead of just bending over and taking this greedy socialist B.S. he's doing something about it.

I blame Harper/Prentice for being stubborn and out of touch and letting these greedy anti-business pigs get in there.

[CorsiHockeyLeague]

Originally Posted by CaptainYooh

I prefaced my math with "primitive" and "ballpark" estimate. Feel free to correct me (instead of being you know who )

Changing your residency status doesn't mean you suddenly don't pay taxes. Canadian residents pay tax on their worldwide income. Non-residents pay tax on their Canadian source income. Dual residents - which Mr. Edwards might be, in CRA's eyes - are still Canadian residents, at which point one has to consult the Canada - UK tax treaty to determine who gets what amount of tax.

So your statement that "Canada would have gotten $40M but now gets nothing" is completely wrong; the "ballpark estimates" don't even come into it.

[T@T]

I wonder if his new neighbor is Lennox Lewis.

[Locke]

Originally Posted by CorsiHockeyLeague

Changing your residency status doesn't mean you suddenly don't pay taxes. Canadian residents pay tax on their worldwide income. Non-residents pay tax on their Canadian source income. Dual residents - which Mr. Edwards might be, in CRA's eyes - are still Canadian residents, at which point one has to consult the Canada - UK tax treaty to determine who gets what amount of tax.

So your statement that "Canada would have gotten $40M but now gets nothing" is completely wrong; the "ballpark estimates" don't even come into it.

Thats Federal Non-Residency, as far as his personal income tax is concerned as a non-resident Alberta does literally get $0.

[CaptainYooh]

Locke, you're a tax accountant. Assuming he has a $100M gross income: what did Alberta and Canada lose in total, could you guess a a range min/max?

[Flash Walken]

Can we confirm or deny whether Murray Edwards is moving to London for the curry?

Maybe the guy is tired of the same old curry offerings in Calgary.

Maybe this is actually a protest about the lack of quality indian food in Southern Alberta?

[Enoch Root]

#bettercurryforMurray

[Locke]

Originally Posted by CaptainYooh

Locke, you're a tax accountant. Assuming he has a $100M gross income: what did Alberta and Canada lose in total, could you guess a a range min/max?

Marginally its pretty simple. Assuming income of $100M

125,001 - 150,000 @ 12% = 2,999.88
150,001 - 200,000 @ 13% = 6,499.87
200,001 - 300,000 @ 14% = 13,999.86
300,000+ @ 15% = 14,955,000

Total: $14,978,499.61

That just Alberta and excludes all income under $300,000 and assumes a $100M total income that is taxable as salary (not dividends or investments).

[CaptainYooh]

and federal?

[Locke]

Originally Posted by CaptainYooh

and federal?

45,282 - 11,500 (this is a guess) @ 15% = 5,067.30
20.5% = 9,282.81
26% = 12,954.50
29% = 17,287.48
33% = 32,901,000

Total = $32,945,592.09

Including his Alberta tax it comes to 47,924,091.70. Give or take a little here or there for guesses and assumptions.

Or more or less 48% of his assumed $100M income.

[Enoch Root]

except his income would likely be mostly dividend