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Insights

U.S. Citizens in Canada: Are you sure you don’t owe U.S. income tax?

The U.S. income tax filing requirements of U.S. citizens living in Canada has seen more than its fair share of press coverage in recent times. That said, despite the onerous personal income tax filing obligations and related foreign bank and financial account disclosure requirements imposed on U.S. citizens living outside of the U.S., few of these taxpayers end up owing U.S. income tax.

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Considerations on incorporating your business or professional practice

If you have an unincorporated business or professional practice, consider incorporating to take advantage of various tax planning opportunities not otherwise afforded to unincorporated businesses.

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Indirect tax Tax advisory

Providing services to a non-resident? Prove it!

This article is to shed light on the age-old question – are the services I am providing to a non-resident exempt from tax or not? As is true of most questions relating to sales tax implications, there is no clear-cut answer. To answer this question, you need to contemplate several other questions first.

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International Tax advisory

Snowbirds and the Closer Connection Exception

Fall is the time of year when Canadian snowbirds pack up and head south for the warmer winter in the U.S. Some limit their stay to a maximum of 182 days, under the mistaken belief that this will avoid being considered a resident of the U.S. for income tax purposes (and conveniently brings them home just in time for spring). Many do not realize that the U.S. residency rules for income tax purposes involve a much shorter time period.

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Income Tax Filings: On Time or In Time

Canadian taxpayers will face negative consequences if their income tax returns are not filed on time by the due date. In addition, they face other, different negative consequences when returns are filed after the due date but not in time to obtain a refund. This article discusses those consequences.

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Reduce Your Family Taxes with a Prescribed Rate Loan

Are you in a higher tax bracket than your spouse? Do you earn investment income from a non-registered account? If so, a prescribed rate loan can provide you with a method of income splitting that will reduce your taxes.

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Indirect tax Tax advisory

Best Practices: Indirect Sales Tax Overpayment and Exposure Analysis

At Collins Barrow, we strive to bring extra value to our clients. To that end, we can provide an indirect sales tax overpayment and exposure analysis. This is a specialty tax service above and beyond the thorough general audit process typically provided.

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The Concept of Residence in Canadian Tax Law

As is the case in much of the world, Canadian taxation is for the most part based on the concept of residence. But the issue of determining residence can be problematic, particularly where individuals leave or think they have entered or left Canada.

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International Tax advisory Transfer pricing

Financing a U.S. Subsidiary: Debt vs. Equity

Canadian corporations seeking to expand their operations often look southward to grow their business. By expanding into the United States, Canadian corporations can potentially gain access to a much larger market than is available in Canada. For a variety of valid reasons, Canadian corporations often choose a U.S. corporation as a vehicle for expansion into the U.S. But once this structural decision is made, the question becomes, how to finance the U.S. operations?

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International Tax advisory Transfer pricing

Our American Customers: the Watchdogs of the U.S. Tax System

With today’s technology, it is becoming increasingly easy to sell products to individuals and companies all around the world. Many Canadian companies have developed great business relationships with U.S. customers, selling a wide variety of goods.

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Discretionary Shares: Are they under attack?

Discretionary shares are a popular income-splitting tool for professional corporations and owner-managed corporations. They have gained popularity since the Neuman decision from the Supreme Court of Canada in 1998 (Melville Neuman v. Her Majesty the Queen). Not surprisingly, the Canada Revenue Agency (CRA) is still looking for ways to attack the use of discretionary shares.

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