We’ve seen a lot of tricky situations.
Moodys Gartner has existed in different incarnations for nearly 20 years. And through those years, there has been one focus and one focus only. Tax. Thanks to hundreds of clients and thousands of files over the years, we have seen and solved countless tax situations. We intimately understand the nuances of the Canadian Income Tax Act and the US Internal Revenue Code, the tolerance of our clients, and the limits of the CRA and IRS. It is within these boundaries that we design solutions without borders.
Our clients' results indicate that our solutions work. Or what we like to say, tax isn't solved until it is solved well.
Canada tax examples
Moodys Gartner Tax Law has numerous examples of the breadth and depth of tax issues worked on and solutions created:
1. Purchase and sale of businesses
We are often engaged to assist with the tax complexities of purchasing a business to ensure maximum tax shield and future benefits. Conversely, we are often engaged to advise on the tax implications of a proposed sale of a business to maximize tax benefits. In one transaction, Moodys Gartner was the lead tax advisor on the disposition of a large private business to a US company that involved many moving pieces. We were able to navigate through the maze and provide proactive advice which saved our client many tax dollars.
2. Estate planning and succession planning
Our clients often desire a plan to transfer their estates to a target group of people (usually family members but sometimes charities, friends, or others). Such plans often involve “estate freezes,” proper will design and the development of gifting strategies. In one example, a very successful business owned by “Dad” for many decades was transferred to the next generation in a tax efficient manner. We ensured all the “i’s” were dotted and “t’s” were crossed, including ensuring Dad’s will was drafted in a tax efficient manner by his own counsel.
3. Disputes with the CRA
We are often engaged to resolve tax disputes with the CRA, IRS, or state or provincial tax authorities. Our tax litigators have many years of experience in resolving cases early on or taking them to trial when necessary. Recent examples include successfully resolving a disputed amount of goods and services tax for a client, and successfully removing a garnishee for a client in a CRA collection matter.
4. Compensation planning
Often our clients may have complex compensation packages that involve unique tax challenges. In one case, the client received income derived from outside of Canada. We provided advice on how such income was to be treated for tax purposes in Canada and how the foreign tax applicable on the foreign income could be applied against the ultimate Canadian tax, to avoid double taxation.
5. Expansion of a business
Expanding a business often involves financing issues, acquisition of capital assets, acquisition of new human capital and many other residual issues. All of these come with unique tax matters that should be carefully considered. In one situation, our client was growing very quickly and needed to acquire a large amount of capital assets in order to facilitate an expansion. The acquisition was to be funded by debt financing. We worked with the client and their lenders to ensure the debt was properly placed, resulting in maximum interest deductibility.
1. US employees
Large companies hiring numerous employees from the US have engaged Moodys Gartner to provide tax assistance to ensure they have the information to make good decisions and put a tax plan in place that is compliant within Canada and the US.
2. Establishing US operations
A Canadian client wished to open a US office for better access to human and expansion capital. We were engaged to restructure the company in anticipation of a private security offering in light of cross-border structure, treaty positions and the fact that the US state where the company planned to operate does not follow the Canada-US Tax Treaty.
3. US Investment strategy
A Canadian client wished to invest in a substantial real estate development project in the US. We were engaged to advise on the entity structure that would produce the lowest overall tax effect from both a Canada and US perspective.
4. Canada/US estate planning
We conduct a significant amount of cross-border estate planning involving US citizens who are residents of Canada. In one particular case, Moodys Gartner designed an innovative strategy that successfully dealt with IRS appeals and obtained a very favourable result for our client in a situation that was the first of its kind (the US Courts and IRS had never had a reported matter involving whether certain assets held by a non-US person was a US situs property).
5. Purchasing or selling US property
Many of our Canadian resident clients are interested in purchasing US vacation property. We are often engaged to create a structure that is efficient from both a US and Canadian income tax perspective and avoids exposing the individual to US estate tax. We also advise on the tax implications of selling US property. For more information, visit our Purchasing and Selling US Real Estate knowledge portal.
6. Renouncing US Citizenship
Many American expats living in Canada have engaged Moodys Gartner for advice and guidance on renouncing their US citizenship. We guide clients through each step of this complex process, evaluating if renunciation is right for them, and if so, work with them to avoid any potentially negative consequences. For more information, visit our US renunciation knowledge portal.