Businesses with US Operations:
For many Canadian businesses, the US market represents a substantial opportunity, but even working with just a few American clients from a base in Canada can generate complex US tax obligations. Determining how to file for US federal tax purposes is the first step. Determining in which states to file and which state taxes apply can be a very daunting task, as all states have their own tax systems as if they were each a separate country.
GGFL can assist Canadian companies as follows:
- Determine if your company has a “permanent establishment” under the Canada-US Tax Treaty (“the Treaty”) and is subject to US federal tax, or if it is exempt from federal tax under the Treaty
- Determine your company’s state tax obligations
- Prepare your annual US corporate federal and state tax returns
- Develop the best structure for conducting business in the US
- Advise on repatriating profits back to Canada
US Citizens and US Green Card Holders
US citizens and green card holders must file US tax returns annually to report their worldwide income, regardless of their country of residence and their sources of income.
How can we help?
Prepare your annual US tax filings
Our cross-border tax team will ensure you are fully compliant by preparing your annual US tax returns, and if required, other informational returns (such as special foreign bank and financial asset reporting forms).
We will claim foreign tax credits and other deductions to ensure you are not subject to double tax, and help you avoid hefty penalties imposed for non-filing, incorrect or incomplete filings.
Help you become compliant with prior years’ filings
Our team can assist first time filers or those who have not kept up with their US filings, get up to date with their IRS obligations with minimal or no penalty exposure.
We can help you determine if you can benefit from the IRS’ voluntary disclosure programs, including the Streamlined Foreign Offshore Procedures and the Relief Procedures for Certain Former US Citizens.
Assist you with renouncing your US citizenship?
Let our experts help you plan and guide you through the steps to expatriate smoothly, without unexpected punitive tax implications.
Have investments in the US or looking to invest in Canada?
Our US tax team can advise you on how to structure your investments in the most tax efficient manner, and how to avoid double taxation.
Canadians or Americans Working or Moving Permanently Across the Border:
With the world becoming ever more connected, individuals are finding themselves exploring new, exciting opportunities across the border or even worldwide! With each move comes new tax considerations. We can help.
If you are moving to or from Canada on a permanent basis, GGFL can assist with:
- Canadian and US tax return filings in the year of move and in the future
- Analysis of residency status
- Deemed disposition/acquisition of assets in Canada
- Planning the timing of receiving income
- Restructuring assets, transferring investments and retirement plans to new country
- Applying favourable Tax Treaty positions and elections
Canadians Investing in US Real Estate / Living Part-time in the US (“Snowbirds”):
Many Canadians invest in US real estate, either as vacation homes and/or rental properties. Even snowbirds who escape Canadian winters to spend part of the year in the warm weather of the US, can face US tax implications and filing requirements.
How can we help?
Considering purchasing a US property?
Let us help you determine the best way to hold US property before you buy.
Renting your US property?
We can help prepare non-resident tax forms to avoid upfront withholding tax on gross rents, file elections and tax returns to report your US rental operations.
Selling your US property?
Our team can help you prepare the required forms and returns to report the sale of your US property, and minimize the upfront tax withheld at the time of the sale and eventual US tax liability.
We’ll also ensure foreign tax credits are properly claimed on Canadian returns for US taxes paid to prevent exposure to double taxation.
Spending part of the year in the US?
We’ll help you determine the maximum amount of time you can spend each year in the US, and file the required forms so that you aren’t considered a US resident required to report worldwide income to the IRS.
Canadians or Americans with Exposure to US Gift and Estate Tax:
US gift and estate tax can apply not only to US citizens and US residents, but also to Canadians who hold US assets. For example, a Canadian can face exposure to US estate tax by owning a Florida condo or even US shares within an RRSP.
GGFL can assess if individuals have exposure to US gift or estate tax, create a plan to mitigate this exposure, and prepare required US gift or estate tax returns.
Businesses with Cross-border Employees
More and more, companies have employees crossing international borders as a normal part of doing business. GGFL can assist with:
- Determining the company’s cross-border tax and payroll obligations
- Advising employees of their cross-border tax obligations
- Preparing employees’ Canadian and US tax filings, and hypothetical and tax equalization calculations if applicable
- Assisting companies with tax equalization policies which encourage employees to accept cross-border travel and long-term foreign assignments
Taxpayers Applying for US Taxpayer Identification Numbers (ITIN/EIN):
An individual taxpayer identification number (“ITIN”) is required when an individual is not eligible for a US social security number, and has a requirement to furnish a US tax identification number or to file a US tax return. GGFL’s certifying acceptance agent can facilitate the ITIN application process by verifying all necessary documents, preparing and submitting all required forms to the IRS on your behalf, saving you from mailing original documents.
GGFL can also assist your company to obtain an employer identification number (EIN), which is necessary to file US corporate tax returns and other forms.
International Network of Trusted Tax & Accounting Professionals
GGFL is an independent member of DFK International, which allows us to also leverage the expertise of a worldwide network of tax professionals. Regardless of what country clients are moving to or to which country they are planning to expand their business, GGFL’s access to experts worldwide ensures clients can receive sound technical advice on tax rules in other countries.
Every client’s cross-border situation is different. At GGFL we have the knowledge and experience to assist individuals and companies comply with their cross-border tax obligations, and advise on how best to structure their affairs and assets to save the most on taxation and simplify their lives!