Offshore

Offshore commonly describes companies, bank accounts, trusts or investments located outside Canada, often in low-tax jurisdictions. It is a business and tax term rather than a legal category; holding assets offshore is lawful but brings reporting and tax obligations.

How BC law treats it

Canadian residents are generally taxed on worldwide income, and taxpayers holding specified foreign property costing more than $100,000 must report it on Form T1135 under the Income Tax Act. Moving $10,000 or more in currency or monetary instruments into or out of Canada must also be reported under the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

What it means for your business

A BC business with foreign accounts, subsidiaries or investments should obtain tax advice on reporting and transfer pricing.

Risks and common mistakes

Failing to file foreign reporting forms can attract significant penalties even where no tax is owing.

Browse the full Fulcrum Law Dictionary for related terms.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.