Peter Nygard fighting taxes in Canada
Lyford Cay resident and fashion mogul Peter Nygard is fighting a $16 million tax bill that authorities in Canada says he owes, claiming that he resides primarily in The Bahamas and does not live in Canada.
Mr. Nygard, well known for his fashion acumen, has a business empire in Canada and another in New York.
Although Mr. Nygard insists that he lives in The Bahamas, Canadian tax officials are countering that his ties to Canada are such that he should pay outstanding taxes on his thriving fashion business.
The federal government audited Mr. Nygard for 1995 and 1996 and concluded he “participated in many routine aspects of life in Canada” during the two years, which effectively made him a Canadian resident for tax purposes, says a Justice Department submission filed in the Tax Court of Canada, according to a report that appeared in the Ottawa Citizen.
The report added that in 1995 and 1996, Mr. Nygard divided his time almost equally between Canada, the United States and the Bahamas, where he moved in 1974 and subsequently built a sprawling estate called Nygard Cay, which he rents out for $245,000 a week when he isn’t there.
Court records stated that in the two years in question, Mr. Nygard spent 138 and 132 days in Canada, respectively, said the court submission.
In seeking to build their case, the Canadian Justice Department disclosed that Mr. Nygard uses legal and medical services in Canada, pays into the Canada Pension Plan, attends parties and charity events, belongs to corporate tennis clubs, and holds season tickets to sports games.
Mr. Nygard lives in an opulent home behind the exclusive Lyford Cay gated community called Nygard Cay and is well known for throwing lavish parties.
In a court document that was filed, the fashion mogul claimed that he owns several boats and maintains a home office in The Bahamas and even has a Bahamian driver’s license.
Although the federal Income Tax Act dictates that anyone who lives in Canada for at least six months of the year pays Canadian taxes, those who spend less than 183 days are not automatically absolved, with the test being their ties to Canada.
Under Canada tax laws, anyone who spends at least 183 days in the country must pay taxes. However, there have been exceptions made.
The parties are expected to appear in court next week in Montreal.
Source: Bahama Journal
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Bill Sylvia said,
June 26, 2008 @ 3:13 pm
Go Canada! A few years back Nygard promised me to pay my expenses
to not only consult but oversee his electrical construction of his private Harem
that he has in the Bahamas. After reviewing the project, being held as a “prisoner” in his compound, I did not accept his low ball offer to work for him that would require me to be on his compound for 11 months a year.
He demanded me to purchase all materials at my costs.
He stiffed me on the plane fair, and ground transportation.
I guess I should be lucky he didn’t charge me for one of his outrageous room rates. What a scammer.
There were areas that I was not allowed to go to where his harem was.
He’s Scum.
He also kept all the drawings I had drawn and I’m sure he used them. In the US that place would have been shut down for all the electrical code violations.