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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
Corporate Tax Planning
The End of IRS’ Voluntary Disclosure Program is Imminent
Earlier this year, the Internal Revenue Service (IRS) announced that it would begin to ramp down the 2014 Offshore Voluntary Disclosure Program (OVDP) and the program would be fully closed by September 28, 2018. The Offshore Voluntary Disclosure Program The OVDP initially launched in 2009, with a second program offered in 2011, and then 2012. The current program launched in 2014. These voluntary disclosure programs have enabled American taxpayers… Read More