Kenneth Rijock

Kenneth Rijock

Tuesday, October 20, 2015

SHOULD YOU RAISE COUNTRY RISK FOR CANADA ?


The recent elections in Canada are bound to result in major changes in government policies, and the impact of some of those changes could result in increased Country Risk for the country. If any of these categories is relevant to your existing, or future, relationship with Canadian entities or individuals, for compliance purposes. you may want to reexamine your present calculation of Country Risk for Canada.

(1) The new Liberal government plans to increase taxes upon individual who earn more than CAD$200,000 annually. Will this impact either existing foreign debt, or accounts receivable, of entities owned by Canadians ?

(2) The new government, if it is anything like the Liberal administration of Mr. Trudeau's father, will change the national debt situation, going from  a balanced budget, to a major increase in debt incurred.

(3) Will high net-worth Canadians again flee their country, and become non-residents for tax purposes, sheltering their assets in uninsured and dodgy Caribbean tax havens, where they could sustain a total loss, due to fraud, or bank failure ? If they are victims abroad, will they default upon their obligations at home ? or will they seek to hide their assets, and intentionally default ?

(4) The Liberal Government intends to open the doors to Syrian refugees; remembering the massive problems that occurred when Iranian nationals, some of whom were undesirable, or worse, were allowed briefly to enter Canada under the citizenship by investment scandal, will Middle Eastern  terrorist financiers, or even the actual terrorists themselves, be allowed entry, due to the misplaced humanitarian concerns of the new government ?

If you, your bank, or your clients, will potentially be adversely affected by any of the above scenarios, you may want to raise Country Risk on Canada at this tine.   

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