Concordia University marketing professor and author Gad Saad is leaving Canada, citing rising antisemitism and a costly exit tax. Saad, who wrote "Suicidal Empathy: Dying to Be Kind," announced on X that he is moving to the United States after learning the financial cost of leaving Quebec and Canada.
Exit Tax Shock
"Following a very difficult meeting with my accountant, I just found out how much it is going to cost me in terms of an ‘exit tax’ to leave Quebec and Canada," Saad posted on X. "No human being in a free society should have their hard-earned money stolen in this manner. I’m genuinely numb. I’m speechless."
Reasons for Leaving
Saad cited two primary reasons for his departure. First, the onerous tax system that he said makes it nearly impossible to retire. Second, he is fed up with the government's immigration policies, which he claims have made Canada unsafe for Jewish Canadians like himself and his family.
Antisemitism has been increasing worldwide since the Oct. 7, 2023, Hamas attacks on Israel, particularly in Canada. According to Public Safety Canada, religiously motivated hate crimes increased 75% from 2022 to 2023, with the vast majority targeting Canada's Jewish population.
What Is the Exit Tax?
Canada's Departure Tax, officially known as an exit tax, is levied on capital gains when someone ceases to be a resident of Canada for tax purposes. It operates as a "deemed disposition," meaning that on the date of departure, the government considers that the individual has disposed of their assets at fair market value and immediately reacquired them. Any appreciation in value accrued over time is taxed at that point.
The government argues that because the individual benefitted from the Canadian economy and tax system, it wants its share when they leave.
What the Tax Applies To
The departure tax applies to shares held in private or public corporations, mutual funds, cryptocurrency, some real estate outside Canada, certain taxable Canadian properties not excluded by regulation, and interests in trusts.
How to Avoid It
The tax does not apply to TFSAs, RRSPs, Canadian real estate, pensions, or cash on hand. However, the destination country may not respect these exemptions. For example, the U.S. recognizes RRSPs as tax-advantaged accounts but not TFSAs. Any interest, dividends, or capital gains generated within a TFSA will be taxed in the U.S., and contributions to a TFSA are not allowed while residing there. Experts suggest liquidating a TFSA before moving to the U.S.
