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An American passport, representing the idea of renouncing citizenship

Personal Tax Planning

Renouncing US Citizenship As a Tax-Avoidance Strategy: Is it Worth It?

In last week’s blog, we discussed the case of an American business owner facing stiff penalties from the IRS for failing to report income held in Canadian accounts. The obligation to file taxes in the United States on income earned in foreign jurisdictions should not be news to Americans or dual citizens since the implementation of the Foreign Account Tax Compliance Act (FACTA), but the reality of satisfying this obligation may involve more work… Read More

An American flag against a blue sky

Tax Disputes & Litigation

American Business Owner Faces Penalties For Failing To Disclose Canadian Bank Accounts

We’ve had a number of blogs as of late discussing the United States’ Foreign Account Tax Compliance Act (FATCA). The legislation, introduced about ten years ago, empowers the IRS to pursue tax money from American citizens who have bank accounts in jurisdictions outside of the United States. Since the United States is virtually the only country in the world imposing taxation based on citizenship rather than residency, this means that Canadians who have… Read More

FATCA

Personal Tax Planning

FATCA Fight Heads to the E.U.

Last week we blogged about the sharp increase in the number of financial records of Canadian taxpayers sent by the Canada Revenue Agency (CRA) to the Internal Revenue Service (IRS) under the often-controversial Foreign Account Tax Compliance Act (also known as FATCA). As uncovered by CBC News, the CRA sent 900,000 records to the IRS in September 2019: up from 700,000 the previous year. Overall, more than 2.5 million records have been provided to… Read More

FATCA

Personal Tax Planning

10 Years Post FATCA: The Sharing of Canadian Bank Account Information with the U.S. has Increased

As we near the end of 2019 and the start of a new decade, CBC News is reporting that the number of Canadian bank records that are being shared with the Internal Revenue Service (IRS) has increased greatly. This sharing of information is a result of the Foreign Account Tax Compliance Act, commonly referred to as FATCA, legislation which was introduced nearly 10 years ago and which has had a significant impact on tax… Read More

Audit

Corporate Tax Planning

CRA Targeting Contractors Buying Supplies at Hardware Stores in New Audit

We’ve previously blogged about various actions the Canada Revenue Agency (CRA) has taken to crackdown on alleged tax evasion in particular industries, including in the bar and restaurant industry. This week, we continue our blog series by looking into a new audit the CRA is undertaking. This time, the agency is undertaking a review into general contractors and those working in the home improvement sector.  This new audit represents the latest in a… Read More