Corporate Tax Planning

IRS Launches Form 1120-F Non-Filer Campaign

The IRS Large Business and International Division (“LBI”) is taking steps to, “redefine large business compliance work and build a supportive infrastructure inside [LBI],” through a series of campaigns aimed at resolving areas of compliance risk. Some of these campaigns will target cross-border businesses, including the Form 1120-F Non-Filer Campaign. What is the Form 1120-F Non-Filer Campaign? Any foreign company that is involved in US business or trade must file a US tax return,… Read More

Tax Disputes & Litigation

Case Commentary – MAP Transfer Pricing Settlement is Binding on CRA

Earlier this year, the Tax Court of Canada released reasons in the case of Sifto Canada Corp. v The Queen. This decision addresses the legal impact of a transfer pricing settlement under the Mutual Agreement Procedure (“MAP”) article of the Canada-U.S. Tax Convention (“Treaty”), and determined that the Canada Revenue Agency (“CRA”) is bound by an earlier MAP settlement that set the transfer price for the transaction. Sifto Canada Corp. v The Queen The… Read More

Corporate Tax Planning

US Moves to Regulate Foreign Disregarded Entities

Efforts to fight cross-border tax evasion and other forms of international financial fraud are on the rise. As part of this effort, the US Treasury Department and Internal Revenue Service are making it more difficult for foreign entities to evade local taxes by increasing the compliance and reporting requirements for foreign disregarded entities. Tax evasion concerns associated with foreign disregarded entities The DRE enables a foreign entity to use a single owner LLC to hold… Read More

Nova Scotia

Corporate Tax Planning

The Income Tax Benefits of “Disregarded Entities”

What is a disregarded entity? A disregarded entity (“DRE”) is a legal entity, such as a corporation, that is largely “disregarded” for the purposes of calculating income tax. Instead of tax liabilities being determined at the corporate level, the business is reported directly on the individual owner’s income tax return as if it were a sole proprietorship. For the purpose of federal income taxes, the business activities of a DRE are treated as being the… Read More

pirate joe's

Intellectual Property

Pirate Joe’s Settles Long Running Legal Battle and Closes for Good

A few weeks ago, a popular Vancouver grocery store closed its doors after five years in operation. Ordinarily, this does not make the news. However, the conclusion of the years-long saga of Pirate Joe’s is not an ordinary story. Pirate Joe’s: Meeting Canadian demand for US products It seems that everyone, including many Canadians, love Trader Joe’s. Pirate Joe’s opened in late 2011, a Vancouver-based reseller of Trader Joe’s products. The store was run… Read More