U.S. / Canadian Treaty Relief From Double Taxation

Those who renounce their U.S. citizenship and those who have severed ties with Canada and become non-residents risk being taxed twice: once for assets they owned, giving up tax residency, and another time when they sold their assets.

The double taxation issue is primarily resolved for expats living in Canada but not (as far as I know) for residents of other countries.

What is the double taxation problem?

Let’s first talk about what double taxation is. This is because both countries want to tax you, and neither country cares whether the other taxes you or not.

Two countries claim you.

If you are a taxpayer in two different countries, both countries will enforce their tax laws against you and insist on your right to enforce a tax on your income.

Example

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