According to a report by the Canadian newspaper Ming Pao, the Canadian immigration department decided to abolish the immigrant investor program on the grounds that the tax contributions of immigrant investors are not as high as those of skilled workers and live-in caregivers. In response to the immigration department's claim that "immigrant investors have low tax contributions," real estate agent Zhang Weiwen provided figures to refute it. He stated that some Chinese immigrant investors bring 10 million Canadian dollars when they immigrate. Calculating their tax contributions from interest income, home purchases, and major expenses such as buying cars, they contribute 115,400 Canadian dollars annually. In contrast, wage earners with an annual salary of less than 50,000 Canadian dollars contribute only 14,700 Canadian dollars in taxes per year, which cannot be compared to immigrant investors.
Zhang Weiwen, whose clients are mostly Chinese immigrant investors, said he understands very well the contribution of Chinese immigrant investors to the Canadian economy. Although they may not have employment income initially due to their significant assets, one cannot ignore the taxes they pay through buying houses, making deposits, and purchasing cars.
He cited an example of an immigrant investor he knows who brought 10 million Canadian dollars upon immigration. The investor placed 5 million in fixed deposits and mutual fund investments. With an annual return rate of about 5%, the income from this portion alone is 250,000 Canadian dollars, and the income tax on this is about 80,000 Canadian dollars.
The immigrant investor also spent 3 million Canadian dollars to buy a house, paying 60,000 Canadian dollars in property transfer tax. Since he changed houses after 5 years, this is equivalent to paying 12,000 Canadian dollars in property transfer tax annually over 5 years. In addition, the immigrant spent 100,000 Canadian dollars on a luxury car, paying 17% tax, which is 17,000 Canadian dollars. Changing cars within 5 years is equivalent to paying 3,400 Canadian dollars in car tax per year.
Zhang Weiwen calculated that an immigrant investor's annual tax contribution for the first 5 years is already 115,400 Canadian dollars, not including other economic contributions such as children attending private schools or expenses from purchasing a second car for the family.