Canadian Tax Exiles

Thanks to high tax rates, two successful Canadian artists have escaped to Switzerland. Both Shania Twain and Luc Plamondon have decided that the Canadian residence is not worth the price if government seizes too much of their income. One politician calls tax migration a form of “economic treason,” but the real problem is greedy politicians who think that successful people should be milk cows for wasteful government. The Montreal Gazette reports:

He’s one of Quebec’s highest-profile tax avoiders - moving to Ireland, and then to Switzerland to avoid paying Canadian and Quebec income taxes. For the last few weeks, successful songwriter Luc Plamondon is also the owner of an Order of Canada pin, presented to those who, through their achievements, set an example for other Canadians. Ironically, the presentation of Plamondon’s Order of Canada pin by Governor-General Michaelle Jean in a private ceremony last month comes as the Conservative government is moving to crack down on tax avoidance by Canadian companies. …some MPs, such as Liberal finance critic John McCallum, say they see nothing wrong with electing a residence outside Canada to avoid Canadian taxes, others, like New Democrat MP Pat Martin, strongly condemn the practice. “I call it economic treason to be a tax fugitive,” said Martin, suggesting that Plamondon return his Order of Canada pin. …In 1999, three years before he was named to the Order of Canada, Plamondon moved to Ireland, saying he was doing it to avoid high federal and provincial taxes in Canada and to take advantage of its special tax breaks for artists. “There is an enormous number of writers and musicians from around the world who have moved to Ireland because of the tax savings,” Plamondon said when he sold his Montreal home. …Among the other residents of the Montreux area is Canadian singer Shania Twain, also an Order of Canada recipient. …David Perry, senior research associate with the Canadian Tax Foundation, said countries like Canada, which has higher tax rates than some other countries, risk having some of their most successful citizens elect to live outside the country of their birth. “Any country that has had a very high level of taxation on the rich … soon finds itself exporting that type of talent.” A minority of wealthy Canadians elect to reside outside the country to escape its taxes, and the practice is less common than it once was, he said. However, it nevertheless increases the frustration for other Canadians left to bear the tax burden, he said.