Personal Tax Planning

Tax Information for Non-Residents Selling Canadian Property

If you are a non-resident individual or corporation that owns Canadian property, take note of these extra legal hurdles before you decide to sell your property. Canadian tax legislation requires that any purchaser of property from a non-resident can be liable for taxes if they are unpaid. In many cases, to protect against this potential liability, 25% of the sale price will be withheld by the purchaser’s lawyers until the Canada Revenue Agency (CRA) confirms… Read More

Federal election

Corporate Tax Planning

Border Tax Will Hurt Businesses in Both Countries

In February, we discussed the US administration’s unclear stance on the Canadian-US trade relationship, and potential renegotiation of NAFTA. NAFTA renegotiation¬†initiated Last week, the US Congress received a list of priorities that the administration wished to raise, beginning the process of renegotiating NAFTA. While the tone may be somewhat less antagonistic than on the campaign trail, there are still several issues that could be of concern to Canadian companies with US exports and operations. Read More

foreign tax credits

Personal Tax Planning

Case Summary – Foreign Tax Credits for Canadian Residents

In a decision released late last year, the Tax Court of Canada confirmed that foreign tax credits may only be deducted for amounts that were actually paid to foreign governments. The Canada-US tax treaty and foreign tax credits The Canada-US tax treaty is intended to prevent double taxation when someone files tax returns in both countries. When a US citizen earns pension income from a US-based source, the treaty allows the US federal… Read More

foreign power of attorney8i

Cross-Border Estate Planning

Foreign Powers of Attorney & Cross-Border Estate Planning

If you travel back and forth between Canada and the United States, or have any cross-border property, you should ensure that your estate planning and other documents will be valid in both countries to any extent necessary. You may also want to consider whether any powers of attorney in your home province or state may be impacted, and speak to a cross-border lawyer for specialized advice. Powers of attorney and jurisdiction A power of… Read More

cross-border tax

Business Expansion to the U.S.

In the News : E-Bay Attempts to Reduce Cross-Border Tax for Online Purchases

The online shopping giant E-Bay is at the forefront of a growing movement to increase the Canadian de minimis amount for taxing and applying duties to imports, including cross-border purchases made online. Outdated standards inconsistently applied? The current value threshold for imposing a cross-border tax on¬†imports to Canada is $20. It was established in the 1980s and has not been adjusted since. Other countries have much higher limits, with Australia at $1,000 AUS and the… Read More