TaxConnections


 

Archive for International

Changes To Canadian Principal Residence Reporting

Larry Stolberg

Prior to 2016, it was CRA’s administrative practice that the disposition of your principal residence was not reportable where the entire gain is exempt. There have been a few court cases where the administrative practice was not upheld because CRA Form T2091 was not filed.

Read more

Did Mr. FBAR Pay A Surprise Visit To Canada?

John Richardson

This is one more of my posts about Mr. FBAR. Mr. FBAR is a mean, nasty vicious thug who has no place in any civilized society.

Thomas Jefferson once said:

Were it left to me to decide whether we should have a government without newspapers, or newspapers without a government, I should not hesitate a moment to prefer the latter.

Read more

Canadian Tax FAQ – Shareholder Loans On A Balance Sheet

Grant Gilmour

What are Shareholder Loans on a Balance Sheet? The Shareholder Loans category may appear as a short term or long term liability on a Balance Sheet. Shareholder Loan is a loan by a corporation to one of its shareholders.

Read more

Changes To The Canadian Principal Residence Exemption

Larry Stolberg

On October 3, 2016 changes were announced to the computation of the available principal residence exemption. Changes were made to properties held by individuals and to properties held by trusts. Discussion below is limited to the changes affecting individuals. Changes to trust is more complex and may be addressed later.

Read more

Personal Services Provided By U.S. Person Coming To Canada

Larry Stolberg

Similiar to the U.S. rules, Canada may tax personal services provided in Canada by U.S. persons who are not residents of Canada for income tax purposes. The provisions governing this are regulations 102, 105 and section 115 of the Income Tax Act (‘ITA”).

Read more

Canadian Tax FAQ – Capital Leases On A Balance Sheet

Grant Gilmour

What are Capital Leases on a Balance Sheet? The Capital Leases category appears as a long term liability on a Balance Sheet. A Capital Lease is a contract that allows the lessee to use the asset for a specific period of time. The corresponding asset is listed as a Capital Asset on the Balance Sheet.

Read more

International FAQ #29 – Foreign Accrual Property Income

Grant Gilmour

What is Foreign Accrual Property Income (FAPI) and what affect does it have on my corporate taxes?

If you are a Canadian resident and own a foreign corporation that earns passive income, the income needs to be reported on your Canadian tax return even if you never received the funds. However, if the foreign corporation has a loss, the loss is not allowed to offset any other income you have for the year. Instead, the loss can be carried back three years against previous FAPI or forward 20 years against future FAPI.

Read more

Borrowing To Redeem Shares Or Pay Dividends

Larry Stolberg

It is my understanding that the Canada Revenue Agency (“CRA” Canada) has not changed it’s position on the deductibility on interest incurred on borrowing to fund the redemption of shares or the payment of dividends.

Read more

Act Immediately In Filing Your Canadian Notice Of Objection

Larry Stolberg

Taxpayers who do not agree with their notice of assessments or reassessments can file a notice of objection, appealing the Minister’s decision. Generally, one would first to go the appeals division as opposed immediately to Tax Court. Sometimes we file a T1 adjustment form where the Ministers’ adjustments are simply based on incorrect information. However, where there is a misinterpretation of the facts or it is a grey area, the appeals process is the best route. The appeal process also stops the tax collection process but still with arrears interest accruing on the account until the matter is resolved.

Read more

New Zealand New Disclosure Requirements For Foreign Trusts

Ron Marini

The Taxation (Business Tax, Exchange of Information, and Remedial Matters) Bill includes the necessary measures for New Zealand to implement the G20/OECD standard for the Automatic Exchange of Information in Tax Matters, which New Zealand financial institutions will have to comply with, and measures to further strengthen and update New Zealand’s international tax rules with new disclosure requirements for foreign trusts.

Read more

Canada Tax FAQs – Payroll Tax Rates For 2017

Grant Gilmour

What are the payroll tax rates changes for 2017 for withholdings?Payroll tax rates change every year and it is important for you to know the correct rates when preparing payroll remittances.

Please visit our payroll tax post for more figures and for updated rates for 2017 with 2016 comparison. Or read the entire chart below.

Read more

Canadian Tax FAQs – Combined Tax Rates For 2017

Grant Gilmour

What are the combined tax rates for 2017— Federal and British Columbia? Tax rates change every year and there are several types of income that are taxed differently.

See updated tax rate charts (with estimates) for 2017.

Read more

TaxConnections