The budget of 2014 was brought along with the news of scrapping Immigrant Investor Program which helped the investors enter Canada within a short period of time. This program had given benefits to the Immigrant investors by tracking their application faster than the other categories.
The nature of Program
The program was initiated in 1986, but the applications were not taken from foreign investors in 2012. An immigrant investor was offered Permanent residency Statues against which he was supposed to make an investment of a minimum of $150,000 for a period of three years.
These investors are granted PR, in turn they provide interest free loan to the Government, Provincial or Territorial.
The reason behind scrapping
The Program received criticism galore because many felt that rich foreigners were allowed to enter the country without facing much of hassle.
A professor from Queen’s University, who has written quite a bit on Canadian immigration Policy, informs that the program was not quite successful.
Experts opine that the amount expected to invest was not very high and for the foreign investor it threw no risk at all.
The Investor class is reported to submit least amount of taxes over the period of ten years, and this is even lesser than the economic immigrants.
They are reported to bear less knowledge of English or French, the two official languages of Canada and the trend shows that they reside in the country insignificantly.
A recognized Official from Queens’ School of Policy Studies suggests that the program would have continued with investors being asked to put in a high amount of money than what they did now.
In fact, monitoring the program was another big challenge for Government and hence the decision of scrapping the same was made.
Many of the Consultants and immigration Lawyers would find a decrease in their demand.
The Investor Program had mainly takers from countries like Hong Kong, Taiwan and China. And the scrapping would have an adverse effect on the immigrant’s coin from these countries.
The future plan
A new program would be introduced instead, which would be in coherence with the skills needed at Canada along with the market trend which will boost the economy of the country.
The Government is more hopeful about new economic immigrant who is attracting more of newcomers and is adjusting with the society at a faster rate and in a better way.
Immigrant Investor Program started losing its sheen, after the Government calculated the deficit in the taxes paid by them.
Ultimately the burden comes to toes that pay taxes genuinely and also many of them did not stay in Canada for a long time in spite of holding the PR Status. All this put together Government decided to scrap this program so that no one could take undue advantage of the Immigration rules. There is probably a better plan coming in future to strengthen the economy of the country.