Corporate Tax Planning

CRA Reveals Continued Crack Down on Restaurant Industry

CBC News reported this week that the Canada Revenue Agency (CRA) will be reviewing data on beer, wine, and liquor sales in an attempt to crack down on tax avoidance in the bar and restaurant industry.  As we blogged about earlier this year, this is not the first time that this sector has come under scrutiny. High-Risk Sector The CRA has said that it has identified the restaurant industry… Read More

NAFTA

Introducing the USMCA: Goodbye NAFTA

After more than a year of negotiations and mere hours before a midnight deadline, Canada, the U.S., and Mexico have reached a tripartite trade deal. No longer known as NAFTA, the new agreement is called the United States-Mexico-Canada Agreement, or USMCA. In a joint statement, Canadian Foreign Affairs Minister Chystia Freeland and U.S. Trade Representative Robert Lighthizer said, about the new agreement: It will strengthen the middle class, and… Read More

Corporate Tax Planning

Canada Takes Additional Steps on Implementing the MLI

Earlier this year, the federal government introduced Bill C-82 (An Act to implement a multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting). The Bill passed first reading in the House of Commons in June. If passed, it will bring into force the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Sharing (also known as the MLI). What is… Read More

Personal Tax Planning

Buying Property from a Non-Resident of Canada Can Leave You with Huge Tax Liability

As a recent Tax Court of Canada decision illustrates that if you are purchasing a condo, home, or cottage from an owner who is a non-resident of Canada, you may be personally liable for their Canadian capital gains tax, unless certain precautions are taken. Taxable Canadian Property: A Primer All Canadian residents must pay tax, in Canada, on their worldwide income (i.e. income earned both in Canada and anywhere outside of Canada). Read More

Corporate Tax Planning

Inspector General Identifies Issues with IRS’ Private Debt Collection Program

Earlier this year, the Internal Revenue Service (IRS) launched a new private debt collection program, and outsourced debt collection over certain accounts to four private contractors. More than 500,000 accounts consisting of more than $4.1 billion in outstanding debts were part of the program. Recently, the Treasury Inspector General for Tax Administration (TIGTA) identified a number of issues with the program. Program Introduced by Congress The program was authorized under Section 32102 of… Read More