Cross-Border Tax Issues
CRA Sends Excessive Documentation To The IRS
One topic which we have blogged about on a number of occasions in the past is the requirement for dual citizens of the United States and another country to file tax reports in the United States even if they don’t live there. This is a rare policy position, taken only by a couple of countries globally. This means that if someone is a citizen of the United States and Canada, but lives and works… Read More
Cross-Border Tax Issues
Taxpayer Wins Appeal Following Penalties Imposed on TFSA
For people living on both sides of the border, managing money can come with additional complexity that doesn’t apply to those who don’t travel back and forth between residences in Canada and the United States. Tax-Free Savings Accounts are a tool most people can use to save money and avoid tax on the interest generated by their savings. However, if you aren’t a resident of Canada, you aren’t allowed to contribute to an existing TFSA… Read More
Cross-Border Tax Issues
How Will The Biden Presidency Impact The Wallets Of Canadians?
The word was watching this week as Joe Biden became the 46th President of the United States. While this is undoubtedly huge news for Americans, the implications of a new president will be felt around the world, and certainly in Canada. In this week’s blog, we want to look at how the Biden presidency could impact Canada and its economy. Biden reverses decision to allow Keystone XL pipeline One of the first announcements to emerge… Read More
Corporate Tax Planning
COVID-19 Allows Tax Breaks For Those Working From Home
The COVID-19 pandemic saw a huge increase in the number of people working from home. Many people in all parts of Canada still find themselves working from home, and likely will for some time. Of course, working from home usually means the employee faces costs they wouldn’t otherwise have to deal with when working in an office or other workspace. Employees have had to pay for costs associated with setting up a home office, including… Read More
Cross-Border Tax Issues
Creditors Attempt to Lower Bankrupt’s US Tax Bill to Secure Payment
People who work or do business on both sides of the Canada-United States border often have tax obligations to both governments as well. A failure to employ a tax plan that takes these considerations into account can leave an individual with a larger tax bill than they might expect. In an interesting case from a bankruptcy court in the United States, a taxpayer had entered into bankruptcy. With the IRS as… Read More
Cross-Border Tax Issues
Question Over NCAA Compensation Makes Its Way To Supreme Court
The compensation of college athletes in the United States has been a controversial topic that has picked up steam over the last few years. Just this week it was reported that the U.S. Supreme Court will hear a petition from the National Collegiate Athletic Association (NCAA) arguing that the organization should be able to continue to restrict athlete compensation. The appeal stems from a lower court decision that ruled in favour… Read More
Cross-Border Tax Issues
The Tax Implications of Renouncing U.S. Citizenship
As lawyers who work with clients on both sides of the Canadian/U.S. border, we can’t help but notice a particular trend that arises after each U.S. election, no matter the result. People threatening to leave the United States and move to Canada, perhaps even renouncing their American citizenship. For those lucky enough to hold dual citizenship, making such a move is easy. For Americans without Canadian citizenship, it can be a little more challenging. Regardless… Read More
Cross-Border Tax Issues
Travel Opportunities for Canadians Looking to Escape Cold Winter Weather
Every year, thousands of Canadians head south to the United States for the winter. For some, it’s a way of enjoying their retirement and avoiding harsh Canadian winters by soaking up the sun in southern states such as Florida or Arizona. Even for those not yet ready for retirement, but who are able to work remotely, working out of a southern destination can be an appealing idea. Of course, COVID-19 has put a wrench in… Read More
Business Management
Canada Revenue Agency Further Extends Deadlines and Exemptions
It has been a few weeks since we last updated our readers on how the Canada Revenue Agency is continuing to react to the COVID-19 pandemic. There were a number of announcements made in September that will be of interest to business owners as well as Canadians and Americans who spend time in one another’s country. Extension of Travel Restrictions Relief On September 2, the CRA announced an extension to their travel restrictions which could… Read More
Cross-Border Tax Issues
New Tax Risks For Dual Citizens Living In Canada
COVID-19 has brought with it many extensions to tax-related obligations for both Americans and Canadians. However, it doesn’t mean that tax obligations have gone away entirely. One item that has been a contentious topic over the last few years is the requirement for US/Canadian dual citizens living in Canada to file income tax in the United States as well as Canada. We wanted to take this opportunity to remind dual citizens of their obligations to… Read More