• Our Team
  • Tax well solved

Canadian Challenge to FATCA

On August 4 and 5, 2015, the FC heard oral arguments in a lawsuit – commenced on August 11, 2014 by two Canada-US citizens – that challenges the law implementing the Canada-US intergovernmental agreement (IGA) relating to FATCA (Virginia Hillis et al. v. The Attorney General of Canada et al., court file no. T-1736-14). I attended the hearing. Surprisingly, the court said that it would rule on the plaintiffs’ motion by September 30, 2015, which is the deadline for the first transfer of information from Canada to the United States under the IGA. the FC decision may profoundly affect FATCA’s application and Canada’s ability to implement the OECD’s common reporting standard for the automatic exchange of information. The FC decision on the substantive issues will mark the first time that a court in an IGA-partner jurisdiction has decided the domestic legality of an IGA’s implementing legislation: the 115 IGA-partner jurisdictions await both the FC decision and the US treasury comments if the court decision is favourable to the plaintiffs.

Read more...

Tax and AC/DC

Those of you who know me well will know that my first career choice was to be a music teacher. I studied and played music classically well into my teens. When I realized that my talents would likely not provide me a stable living, I switched gears and became a Chartered Accountant. I still love music – all types of music with a few exceptions – but I have a soft spot for classic rock which is often playing in my office. One of my all time favorite bands is AC/DC. Their straight-ahead blues rock with very simple (almost comical) lyrics is exactly what I like to listen to when I need to turn my brain off (which doesn’t happen very often). Accordingly, I couldn’t pass up the opportunity to attend AC/DC’s concert in Edmonton on September 20, 2015, with my fellow directors of Moodys Gartner Tax Law – Greg Gartner, Dale Franko, and Roy Berg.

Read more...

Beware of wolves in the Canada Revenue Agency’s clothing

Telephone calls by fraudsters posing as Canada Revenue Agency (“CRA”) representatives who threaten immediate legal action unless a purported tax debt is paid continues despite warnings published by the CRA, media, and others. The fraudsters are often reported to have South Asian accents and to use aggressive and threatening language unless the fictitious tax debt is paid immediately (often by wire transfer or pre-paid credit card).

Read more...

News analysis: decision in Canadian challenge to FATCA expected soon

The Canadian Federal Court heard oral arguments on August 4 and 5 in a lawsuit that challenges the law that implements the intergovernmental agreement between Canada and the US relating to the Foreign Account Tax Compliance Act. This author attended the hearing. Surprisingly, the court committed to rule on the plaintiffs’ motion for summary trial by September 30, the date by which the first transfer of information from Canada to the US is required under the IGA.

Read more...

Donation of private corporation shares and real estate – new Canadian legislative proposals released

A number of years ago, the government introduced legislation (under paragraph 38(a.1) of the Income Tax Act – the “Act”) that exempts from taxation realized capital gains when publicly traded securities are gifted directly to registered charities. Subsequent to the introduction of such rules, many commentators have suggested that donations to charities from proceeds realized upon the disposition of real estate and private corporation shares should also be subject to a similar capital gains exception. The government has resisted introducing such measures until the 2015 Federal Budget (the “Budget”) which was released on April 21, 2015.

Read more...

A rare example of a one-client business found by the Tax Court to not be a personal services business

On August 12, 2015, the Tax Court of Canada (“TCC”) released its judgment in C.J. McCarty Inc. v The Queen1. McCarty is one of many personal services business (“PSB”) reassessment cases published in the recent years, but what makes this case interesting is that it is one of few where the taxpayer emerges successful despite having only one significant client and being compensated at a fixed hourly rate. In this short article, we will examine the unique facts that led the court to its judgment.

Read more...

Important changes to US tax filing deadlines for Canadians

On July 31, 2015, President Obama signed into law the “Surface Transportation and Veterans Health Care Choice Improvement Act of 2015” (the Act). Although the Act was not primarily tax focused, it nevertheless contained several important changes to US tax filing deadlines, which may catch Canadians who have US tax and filing obligations off-guard.

Read more...

An introduction to FATCA and analysis of Canada’s legislation

This article provides an introduction to the Foreign Account Tax Compliance Act (FATCA)
for Canadians and analyzes Canada’s implementing legislation regarding FATCA. The
implementing legislation uniquely classifies entities subject to FATCA, in that it departs
from the classification in the US Treasury regulations, the Canada-US intergovernmental
agreement regarding FATCA (the Canadian IGA), and the implementing legislation adopted
or proposed by other jurisdictions with signed IGAs with the United States.

Read more...

Planning using principal residence trusts for immigrants to Canada

As many of our readers know, the Canadian Income Tax Act (the “Act”) provides for an unlimited exemption from the imposition of Canadian income tax on the gains resulting from a disposition of a “principal residence”. Access to the principal residence exemption can be valuable, especially in cities (e.g. Vancouver, Toronto, Calgary) where residential properties have enjoyed robust appreciation.

Read more...

Increases to Alberta Tax Rates

For better or worse, on June 18, 2015, Alberta’s newly elected NDP provincial government released Bill 2, which immediately received First Reading in the Legislature and passed. Even though the Bill is still not law, it will undoubtedly pass into law soon. Bill 2 contains corporate and personal tax increases that are, quite frankly, shocking. While “shocking” may not be a correct description, especially since the NDP had campaigned on the tax increases that are contained in the Bill, many Alberta tax practitioners, like us, are still shocked that such abrupt increases are actually going to see the light of day.

Read more...

If it quacks like a Partnership, it is a… Corporation?

At the Canada Revenue Agency (“CRA”) Roundtable session during the International Fiscal Association Conference on May 28, 2015, the CRA was once again asked to comment on the issue of foreign entity classification. In contrast to the CRA’s usual response of merely reaffirming the use of the “two-step” approach, the CRA revealed several surprising insights about their views. The CRA indicated that they are currently analyzing entity classification for Florida and Delaware Limited Liability Limited Partnerships (“LLLPs”) as well as Florida Limited Liability Partnerships (“LLPs”), none of which have previously been the subject of specific determination by the CRA with respect to their classification.

Read more...

No Social Security number, goodbye passport?

As another season of summer travel starts, Canadian residents with US ties should make sure they are thinking carefully about their tax obligations. Tax compliance may not be first in the minds of most people planning trips to the US, but Congress and the Obama administration certainly are thinking about the combination of travel and taxation. If a proposed law is enacted, US passport holders with tax debt or without a valid Social Security number could, as soon as 2016, find themselves losing that passport and maybe even being forced to remain in the US until the issues are resolved.

Read more...
6 of 26«...3456789...»