Library Categories Tax Planning

New IRS Program Provides Relief For Those Who Relinquish US Citizenship

New IRS Program Provides Relief For Those Who Relinquish US Citizenship

By Monica Martinez, CPA, CA, CPA Principal, U.S. and Cross-Border Tax & Advisory Services On September 6, 2019, the IRS announced the new “Relief Procedures for Certain Former (US) Citizens” (Relief Procedures), which apply to certain individuals who have relinquished, or intend to relinquish their US citizenship (expatriate). If eligibility criteria are met, the new […]

Independent Contractor vs. Employee

Independent Contractor vs. Employee

Determining whether you’re an employee or a contractor is a critical decision with important consequences for both the worker and payer (the company, employer or individual paying for the work). Employee or contractor? It might sound like an easy distinction to make, but it is not. This article covers both the factors CRA uses to determine the tax treatment, and the advantages and disadvantages for the individual in each circumstance.

Consider compliance and tax implications on U.S. residences

Consider compliance and tax implications on U.S. residences

Although Snowbirds who own property in the United States might find relief from winter, it can produce unexpected financial and compliance headaches for those who don’t take the time to figure out the tax implications if they decide to sell or rent.

Monica Martinez, GGFL’s U.S. and cross-border tax principal, knows that it’s complicated and involves dealing with the U.S. Internal Revenue Service (IRS) and the Canada Revenue Agency (CRA). Her best advice: “Come and see us at GGFL. It is well worth it for the peace of mind.”

Paying dividends to family members

Paying dividends to family members

Personal taxation for families that operate a business through a Canadian Controlled Private Corporation has drastically changed since the announcement of the new Tax on Split Income (TOSI) rules for adults in July of 2017.  Prior to the changes, a shareholder could receive unlimited dividends.  However, under the new rules, it is very difficult to pay dividends to family members and have those dividends taxed at their marginal rates, unless they are working full-time in the business.

Don’t be found GILTI

Don’t be found GILTI

In December 2017, the U.S. introduced sweeping tax reforms that included the introduction of a new tax on international income called the “Global Intangible Low-Taxed Income” (GILTI).

Beginning in 2018, this tax would require U.S. shareholders of controlled foreign corporations (CFC) to include on their personal U.S. tax returns any income earned by the corporation in excess of a 10% return on the corporation’s tangible depreciable capital property.  In future years, practitioners must carefully plan for the impact of this tax.

Federal Budget Highlights 2019

Federal Budget Highlights 2019

Finance Minister Bill Morneau released the 2019 Federal Budget on Tuesday, March 19th and compared with the last two years, this pre-election budget holds limited tax changes for individuals and businesses. The federal government is projecting a deficit of approximately $15 billion for fiscal year 2019 and $20 billion for the following two years.