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Why Cayman?

What if Tax Freedom day fell on January 1st vs June 7th?

Millions of Canadians across Canada enjoyed Canada Day last month. Some started their day with their essential cup of Tim Horton’s and many met with friends and family to celebrate with a BBQ, some cold beers, and perhaps some traditional Canadian fare like good old Poutine.

And, while people across the country enjoyed Canada Day, many also gave a great sigh of relief that had finally arrived. “What’s Tax Freedom Day?” you ask? If you paid all of your Canadian taxes up front, Tax Freedom Day According to the Fraser Institute the average Canadian family will earn $105,236 in income and pay a total of $45,167 in taxes (42.9%).

If the average Canadian family had to pay its total tax bill of $45,167 up front, according to the Fraser Institute, it would have worked until June 6 to pay the total tax bill imposed on it by all three levels of government (federal, provincial, and local).

This means that in 2016, the average Canadian family only got to celebrate on June 7, so that’s the day when the average Canadian starts working for themselves and not the government and gets to spend their earning on other things.  

Tax_Institute.jpgOriginally from Ontario, I moved my family to the Cayman Islands many years ago, for a better, quieter….and warmer life.  There is a thriving community of Canadians living and working in Cayman, but my local friends here ask incredulously “Just how much tax do you pay in Canada?” and the answer is “Quite a bit” and I wouldn’t be too much of a surprise to see Canadian Tax Freedom Day move further and further into the year, cutting down the days that you get to keep the money that you earn.

When we talk about “Tax Freedom Day” in Cayman it’s easy because there is a lot less math involved. In the Cayman Islands is January 1st every year.

Yep, that’s not a typo. Cayman has no income tax, no corporate tax, no sales tax, no payroll tax, no inheritance tax and no capital gains tax.  Legal residents of the Cayman Islands are exempt from paying these taxes, meaning that we get to keep ALL of the money we make and to spend it how we we want.

We work hard here, but our lives are somehow simpler and less stressful. Even though I can’t have Timbits and a double double whenever the urge strikes (which is probably better for my long term health), I’m never stuck on the 401 with icy roads and freezing rain on the way to the office. Plus, the time I save from having to track down all the paperwork to do my taxes can be spent with my son doing fun things, like going to the beach or shooting some hoops.

There are times when I miss my home and native land, but then I look across the crystal clear ocean waters and the sun on my skin and that feeling is gone!




Topics: Why Cayman?
Chris Morgan
Chris Morgan is a highly experienced business development and marketing professional with a diverse background in business development, advertising and information services. He is a team builder and innovator with strong leadership and communication skills. Chris has first-hand experience working with teams throughout the Caribbean, Bermuda and Canada.
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