Articles

Dual tax residency, or being considered a resident for tax purposes in more than one country, is common for many Canadians. High-net-worth individuals with a second home in a warmer climate, landed immigrants maintaining ties to their home country, employees on extended foreign assignments, and those qualifying as dual residents for tax purposes may all experience this. The COVID-19 pandemic has further complicated residency status, as travel restrictions and health concerns have led many to extend their stays in Canada or abroad, inadvertently becoming dual residents.

Additionally, the rise of remote work has allowed employees to work across borders, further increasing the incidence of dual residency. This brings unique challenges and considerations, particularly regarding tax obligations and compliance in both jurisdictions. Navigating the complexities of dual tax residency requires careful planning and understanding of the tax laws in each country involved.

To help you navigate these challenges and understand your tax obligations, we’ve created a comprehensive eBook, “Dual Tax Residency in a Canadian Context.” This resource provides in-depth information, practical tips, and expert insights to help you manage your dual residency status effectively.

Download our ebook now and take control of your dual tax residency situation.

Why Cardinal Point Joined Forces with Gavin Hockey Wealth Specialists: Navigating Cross-Border Tax Challenges for Athletes – Featuring Jeff Sheldon, CEO, in the Globe and Mail

Athletes who reside in Canada and work in the U.S., or vice versa, face numerous cross-border tax challenges. Addressing these complexities is crucial for professional and retired hockey players. To better serve this unique client base, Cardinal Point Wealth Management, with offices in both Canada and the U.S., acquired Gavin Hockey Wealth Specialists based in Toronto.

This acquisition has led to the formation of Cardinal Point Athlete Advisors, a specialized division aimed at providing tailored financial planning and tax management for athletes. The Globe And Mail recently spoke with Jeff Sheldon, Cardinal Point’s chief executive officer, about the acquisition and the complexities involved in cross-border financial planning for athletes.

Sheldon highlighted the need for specialized knowledge to navigate the dual tax jurisdictions effectively. By joining forces with Gavin Hockey Wealth Specialists, Cardinal Point aims to leverage its experience in handling the unique financial needs of hockey players. This collaboration will enhance the firm’s ability to offer comprehensive financial solutions that cater specifically to the athletic community.

The complexity of managing finances for athletes in cross-border situations requires a deep understanding of both U.S. and Canadian tax laws. The new division, Cardinal Point Athlete Advisors, will ensure clients receive the most effective strategies to optimize their financial health during their careers and retirement.

For more details on this acquisition and the challenges of cross-border financial planning for Athletes, read the full article in the Globe and Mail.

Jeff Sheldon
CEO of Cardinal Point

Cross-Border Tax & Financial Planner at Cardinal Point Sees Rise in Activity: Kris Rossignoli Discusses Capital Gains Changes in The Globe and Mail

In a recent Globe and Mail feature, Kris Rossignoli, cross-border tax and financial planner, sheds light on a growing trend among Canadians considering non-residency due to proposed changes in the capital gains tax. The article highlights how these potential tax adjustments are prompting Canadians to rethink their residency status for tax purposes.

Rossignoli emphasizes the complexity of becoming a non-resident in Canada, pointing out that it involves more than just tax considerations. Financial, immigration, and long-term planning are crucial elements that must be addressed comprehensively. As Canadians explore these drastic measures, Rossignoli advises that such decisions should not be taken lightly and require the guidance of a skilled team of professionals.

This decision can have profound implications on one’s financial health and legal status, making thorough planning essential. Rossignoli’s insights stress the importance of professional advice to navigate the intricate processes and regulations of changing one’s tax residency.

Reading the full article in the Globe and Mail can provide valuable perspectives and guidance for those considering this significant move or simply seeking to understand the implications of the proposed tax changes.

To learn more on this vital topic, access the full Globe and Mail article here.

Kris Rossignoli
Cross-Border Tax & Financial Planner

If you are a Canadian tax resident considering moving to another country, understanding the tax implications of the Deemed Departure Tax in Canada is crucial. This tax, also known as the exit tax, involves a deemed disposition of all your assets (excluding those eligible for exemptions) at their fair market value (FMV) immediately before your Canadian tax residency ends. It’s a way for Canada to tax the gains accrued during your residency before you leave the country.

The Canadian Deemed Departure Tax was introduced to ensure that any gain earned while you were a resident of Canada is taxed before your departure. This policy was established following an incident where a prominent family left Canada with substantial untaxed gains, prompting the government to take action.

Navigating the complexities of the Deemed Departure Tax can be challenging, but it’s essential for anyone planning to move abroad. To help you understand this tax better and plan your move effectively, we’ve created a comprehensive ebook that details everything you need to know about the Deemed Departure Tax in Canada.

Download our ebook now for in-depth insights and practical advice on managing your assets and minimizing your tax liabilities when leaving Canada.

Toronto, ON — May 15, 2024 Cardinal Point Wealth Management (“Cardinal Point” or “CPWM”), an independent cross-border wealth management firm with offices in the United States and Canada, announced today that GMG Private Counsel ULC, which is part of the GAVIN Hockey Wealth Specialists group (“GAVIN”) will combine with CPWM on or about June 1, 2024 to provide expanded financial planning, wealth management, investment and related services to active and retired professional athletes through CPWM. GAVIN Wealth & Wellness ULC (“GAVIN Wealth”), which is part of GAVIN and will be renamed Cardinal Point Athlete Advisors as part of this transaction and Cardinal Point’s professional athlete management team each provides multifamily office and related services to active and retired professional athletes. 

GAVIN is a multifamily office that provides customized financial planning, investment, insurance and business management services to both active and retired professional hockey players. “For more than twenty years, we have been committed to continuously enhancing our customer experience and improving financial outcomes for our clients,” said Stew Gavin, Chairman and Co-Founder of GAVIN Hockey Wealth Specialists. “This transaction will bring more tax expertise and broader investment capabilities to our clients, while deepening our leadership in the hockey market.”

Grant Skinner of Cardinal Point remarked, “The business affairs of professional athletes are always evolving and becoming more complex, not only during their careers, but when they transition away from the game. I am thrilled that our clients will be able to benefit from the combined experience of our two firms. The founders of each legacy business have been advising active and retired players in the hockey community since the 1990s.”

Cardinal Point is expected to service approximately 200 active and retired professional hockey players upon completion of this transaction. In addition, Cardinal Point Athlete Advisors clients will be able to utilize CPWM’s portfolio management team that after the completion of the transaction is expected to oversee almost $2.9 billion of private client assets. Additionally, the leadership team for Cardinal Point Athlete Advisors will include Matthew Bacchiochi, who is currently the President and Co-Founder of GAVIN, in the capacity of Managing Director, and Chris Slawson, Vice President at GAVIN, along with Director Tyler Skinner who currently manages Cardinal Point’s professional athlete management team. 

“By combining these two firms, we will possess specialized skills, the proper structure and systems, and expanded resources to expand and enhance our services to our clients,” said Matthew Bacchiochi. “We have a steadfast focus on developing and nurturing quality relationships and improving the well-being of professional athletes and their families. This union is purposefully designed to help our clients achieve their goals.” 

Investor and Media Contact

Jeff Sheldon
Chief Executive Officer
Cardinal Point Wealth Management
P: +1-561-894-8337
jeff@cardinalpointwealth.com

Matthew Bacchiochi
President
GAVIN Hockey Wealth Specialists
P: +1-416-861-1998
mbacchiochi@gavingroup.ca